Key Governance Reform for RECO Announced at Cornerstone Broker Meeting

Last week, Cornerstone hosted our first in-person meeting for all Brokers of Record & Broker Managers at the Royal Botanical Gardens in Burlington. The focus of the meeting was to engage attendees on the Real Estate Council of Ontario’s (RECO) transformation and assist our broker community on what they could expect in the coming months.  

Jean Lépine, RECO’s Administrator & Acting CEO, outlined major changes to RECO’s governance following Orders issued by the Hon. Stephen Crawford, Minister of Public and Business Service Delivery and Procurement. 

The changes include: 

Read RECO’s announcement and the Minister’s Orders. 

In Jean’s remarks, he stated that the governance reforms are necessary to restore credibility, accountability, and independence, and emphasized the importance of a regulator that is clearly independent from the industry it oversees. 

He also noted that RECO is moving toward becoming a more modern regulator; one that is more proactive, data-driven, consistent, and outcome-focused, particularly in consumer protection and market integrity.  

Jean highlighted brokerages will continue to play a critical role as partners in supporting compliance, with a great emphasis on accountability, internal controls, and preventing issues before they reach consumers.  

“The Minister has decided that RECO will now have a fully independent oversight board,” said Drew Hemsley, Chair-Elect of Cornerstone and Chair of the Governance and Bylaw Committee. “We respect the Minister’s Orders and know that having a voice at the table does not require having a seat at the table. For this model to succeed, decisions must be grounded in what works in practice. Cornerstone will engage constructively with the Minister and RECO to ensure real-world expertise continues to shape outcomes, particularly in licensing, education, and compliance. A way to do this is through structured working groups of subject-matter experts drawn directly from the field.” 

During the meeting, Glen Thomas, RECO’s Head of Regulatory Compliance and Interim Registrar, shared that RECO is developing a regulatory scorecard to better measure the outcomes and impact of its enforcement activities, as part of a broader shift toward a more modern operating model.  

Glen also updated attendees on the expansion of RECO’s consumer protection mandate, including strengthening its audit and inspection processes, moving toward annual financial filings, and leveraging new tools to identify higher-risk brokerages and improve oversight. He noted that this shift reflects a move from reactive to more proactive, intelligence-led enforcement, with a focus on outcomes rather than activity.   

Glen also highlighted the substantial increase in discipline, revocations, and charges, as well as emerging trends in misconduct, reinforcing RECO’s commitment to stronger, more decisive enforcement moving forward.  

Overall, the five expectations that members can anticipate from RECO include:

Following the presentations, attendees had the opportunity to engage directly with RECO leadership through a Q&A session, where questions focused on topics such as fee structure, regulatory oversight, data sharing, and the practical implications of proposed changes.  

The discussion included participation from Samantha Pinto, Chief Regulatory Modernization Officer, who provided additional context on ongoing modernization efforts and emphasized RECO’s commitment to consultation and collaboration with the sector as changes continue to take shape.  

“Cornerstone will continue to monitor and communicate changes to members while advocating for a regulator that supports the highest professional standards for REALTORS® and strengthens trust in Ontario’s real estate sector,” said Julie Sergi, Chair of Cornerstone. “We are pleased that RECO continues to engage with stakeholders and the REALTOR® community and values our contributions.”