Overview of remarks: RECO is in a period of transformation, rebuilding and modernization. Jean Lépine, Administrator and Acting CEO, RECO, gives an update to leaders in the Ontario real estate sector on where RECO stands today and RECO’s direction moving forward and what the public and real estate sector can expect on enhanced financial oversight, financial sustainability and education.
Hello, everyone,
It is a pleasure to be here with you today. Thank you to OREA for the opportunity to share a few words about where RECO is headed.
It has been about three months since I was appointed, and what an incredible 90 days it has been. From the start, my priority has been to listen carefully and act decisively and that continues to guide my approach.
Many of you have taken the time to meet with me, share your perspectives, and speak candidly about what you are experiencing on the ground. Those conversations have helped shape a clear and focused direction for where RECO needs to go.
RECO’s vision
Our goal is simple — to make RECO the most modern, technologically advanced real estate services regulator in the country.
We are doing the work to bring this vision to life, charting a new course with a new strategic plan.
That is what consumers deserve, and that is what the professional real estate sector should expect from its regulator.
Agenda for today
RECO is in a period of transformation, rebuilding, and modernization. Recently, I met with the CEO of BCFSA, Mr. Tolga Yalkin, who shared his perspective on navigating rising risks and evolving consumer expectations.
He spoke about how technology, including AI, is rapidly changing how consumers interact with real estate. While consumers have access to more information than ever before, that does not replace the need for trust, professionalism, and sound judgment from the people guiding them through one of the most significant financial decisions of their lives.
Tolga also noted that AI cannot substitute for accountability or intuition in high-stakes decisions. In that context, the regulator’s role has never been more important.
With that in mind, I want to briefly update you on where RECO stands today, before turning to where we are going and what you can expect from us.
As you know, in January, we announced that claimants affected by the iPro matter would be eligible to receive 100 per cent of their commission protection claims. This has been a top priority for the organization and for me personally since my appointment.
I am pleased to report that more than 500 consumer claims have now been processed, paid out, and closed. Of the 2,559 commission claims processed to date, 1,540 have been fully paid, with new payments continuing to be issued every day. We expect the lion’s share of these payments to be fully closed out in the coming weeks.
I recognize the uncertainty and hardship this situation caused for agents and their families. RECO is taking concrete steps to strengthen oversight and processes so that an event like this does not happen again. Some of that work you will hear about today.
RECO’S mandate
There have been many changes at RECO recently, including a new executive team, all of whom are here with me today. Each brings strengths the organization needs as we move forward, and I encourage you to engage with them on matters important to you.
What has not changed is RECO’s role as Ontario’s real estate services regulator.
Our mandate remains to protect consumers by ensuring that real estate agents and brokerages understand and follow the law.
I believe the organization is now operating with a renewed sense of purpose. One grounded in clarity, accountability, and fairness.
Eight transformation initiatives
Turning our vision into reality requires meaningful change inside the organization.
The Dentons Report called for a comprehensive governance and operational reset at RECO, including stronger Board independence, clearer accountability, and improved regulatory and financial controls. These recommendations informed the eight transformation initiatives I announced earlier this year.
One initiative I want to highlight is our upcoming public awareness campaign, launching this fall. Its purpose is to clearly explain RECO’s role as the regulator, distinguish it from other real estate organizations, inform consumers of their rights, and reinforce public confidence in the integrity of the sector.
This work is already underway, and we are committed to keeping the sector informed as it progresses.
Protecting the public
In January, RECO held its first Collaboration Summit to gather feedback on three key areas: annual financial filings, trust account oversight, and the insurance program.
It was clear from those discussions that RECO and the sector are aligned on the need for stronger financial oversight and trust account reforms. As a result, we are moving forward with the implementation of annual financial filings.
This spring, we will be sharing clear requirements, so brokerages understand what is expected and why. I want to be very clear about our intent: this work is not about burdening good operators or creating unnecessary red tape. It is about ensuring that a small number of bad actors do not undermine the integrity of the entire profession.
The vast majority of brokerages in Ontario do the right thing every day. Our approach is designed to support those good actors, build consumer confidence, and allow the regulator to focus attention where genuine risks exist.
Any compliance tools available to RECO will be used proportionately and responsibly. The objective is early identification of risk, clear expectations, and timely intervention, not punishment for its own sake.
This approach will feed into a risk‑based compliance framework that allows most professionals to continue serving their clients without disruption, while strengthening protections where they are most needed.
RECO’s fees
I want to take a moment to talk about RECO’s financial sustainability, and I want to do so candidly and respectfully.
Since stepping into this role, I have heard directly from many of you about how challenging the past few years have been, from market volatility to regulatory change to the uncertainty created by the iPro situation. I do not take that lightly.
I also want you to know that I see how dedicated, skilled, and professional the vast majority of REALTORS® are. You play a critical role in helping Ontarians navigate life‑changing financial decisions, often under intense pressure and scrutiny. That work matters, and it deserves respect.
As a regulator, our responsibility is to protect consumers in a way that reinforces confidence in good actors, not one that casts a shadow over the entire profession. A strong, credible regulator helps ensure that ethical professionals are recognized as such, and that misconduct by a small number does not undermine trust in the sector as a whole.
RECO has also taken steps over time to keep costs down for registrants. Today, RECO’s fees represent a relatively small portion of the total annual fees paid by real estate professionals across associations, boards, and other required costs. That context is important.
At the same time, RECO must remain stable, credible, and capable of delivering on its mandate. That is why we have engaged an independent third‑party expert to review the cost of delivering on the mandate and the expectations placed on the organization by both the public and the sector.
If changes are required as a result of this review, they will be communicated clearly, with advance notice, and with an understanding of the realities facing the profession. My commitment is that this process will be transparent, measured, and respectful.
At the end of the day, a strong regulator supports a strong profession. When consumers trust the system, they trust the professionals within it, and that benefits everyone.
Education
Before I wrap up, I want to briefly address education. While RECO is aligned with the sector on the need to modernize training, the Act places responsibility for education standards and public‑interest oversight with the regulator.
RECO will be reviewing the education program in 2026, beginning with a Collaboration Summit on April 9. Our goal is to move education from a passive requirement to an active regulatory tool, supported by a clear strategy by year‑end.
Thank you
I know I’ve covered a lot at a high level today. I want to reiterate RECO’s commitment to transparency, collaboration, and accountability, and to keeping the sector informed as we move forward.
What will not change is our mandate to protect consumers and uphold professionalism. RECO will continue to take decisive action when misconduct occurs.
Let’s continue working together to strengthen consumer protection and raise the bar of professionalism across the sector.
We will continue to listen, and we will continue to act. That is our commitment to you and to the public.
Thank you.
Jean Lepine, RECO Administrator and Acting CEO
SOURCE, RECO
To learn more, visit RECO, REAL ESTATE COUNCIL OF ONTARIO
