Photo: John Lister Photography
Allegations include off-book mortgage dealing and misuse of trust funds; Frost and Capitis have requested a tribunal hearing and none of the allegations have been proven.
Ontario’s financial services regulator has launched enforcement proceedings against Robert Brock Frost, a licensed mortgage broker and former Cornwall city councillor, and Capitis Mortgage Investment Corp., the private lending company he founded.
In a notice of proposal announced in early July 2026, the Financial Services Regulatory Authority of Ontario (FSRA) alleges that Frost dealt in mortgages for remuneration outside of his registered mortgage brokerage, contrary to subsection 2(3) of the Mortgage Brokerages, Lenders and Administrators Act, 2006 — the statute that governs licensed mortgage brokers, agents and administrators in the province.
The regulator’s allegations against Capitis focus on how the company ran its mortgage administration business. FSRA alleges the firm misused its trust account and mishandled mortgage funds, contrary to sections 23(1), 35 and 37 of Ontario Regulation 189/08, which sets out the standards mortgage administrators must follow when handling money on behalf of investors and borrowers.
Proposed sanctions
FSRA is proposing to:
- refuse to renew the mortgage broker licence issued to Frost;
- refuse the surrender of, and revoke, the mortgage administrator licence issued to Capitis;
- issue a compliance order against Frost; and
- impose a $50,000 administrative penalty on Frost.
Both Frost and Capitis have exercised their right to request a hearing before the Financial Services Tribunal, an independent adjudicative body that reviews proposed regulatory actions. Until that process concludes, the notice of proposal remains exactly that — a proposal. The allegations have not been proven, and the tribunal may confirm, vary or reject the regulator’s proposed sanctions.
Who is Brock Frost?
Frost is best known locally for a brief and turbulent stint in municipal politics. Elected to Cornwall city council in the 2014 municipal election, he resigned in October 2015, citing a heavy workload and his relocation to Ottawa. He subsequently built a career in real estate and private lending, founding Capitis, which operated as a mortgage investment corporation and licensed mortgage administrator.
Part of a wider enforcement push
The action arrives amid a marked escalation in FSRA’s enforcement activity across Ontario’s mortgage sector. According to the regulator’s first Enforcement Annual Report, FSRA initiated roughly 100 enforcement actions in its 2024–25 fiscal year, nearly double the previous year’s total, with the mortgage sector accounting for the largest share of administrative monetary penalties — approximately $1.2 million.
Recent months have seen a string of similar proceedings, including proposed penalties totalling $155,000 against Iqbal Singh Saini and related parties for dealing in mortgages outside an authorized brokerage, and a $600,000 penalty against former broker Claire Drage — among the largest FSRA has levied against an individual broker.
FSRA maintains a public enforcement database where consumers can review the status of proceedings against licensees.
A hearing date before the Financial Services Tribunal had not been publicly announced at the time of writing. This article will be updated as the proceedings develop.
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