Industry Advisory Council

Approval Authority: Senior Management Group
Liaison: Director, Stakeholder Relations

Approval Date: April 26, 2024
Effective Date: April 26, 2024
Revised/Restated: 
Next Review Date: June 2025    
 

Preamble

The Real Estate Council of Ontario (“RECO”) is a not-for-profit corporation that administers and enforces the Trust in Real Estate Services Act, 2002 (TRESA), and its related regulations. RECO acts in the public interest by promoting a safe and informed marketplace and administering the rules that real estate salespeople (agent and brokers) and brokerages must follow. 

Pursuant to subsection 13.3 (1) of the Safety and Consumer Statutes Administration Act, 1996 (SCSAA), the Minister of Public and Business Service Delivery issued an order on January 3, 2024, requiring RECO to establish an Industry Advisory Council (“IAC”) to provide a forum to enable RECO to obtain advice and input from registrants to make informed decisions related to its consumer protection mandate.

I. Purpose

The purpose of the IAC is to provide guidance and advice to the RECO Board of Directors (“Board”) on issues pertaining to RECO’s consumer protection mandate and activities, as well as issues identified by RECO. 

This includes strategic input and advice on areas that would include:

• Opportunities to enhance RECO’s overall brand perception and intersection with members of the real estate services sector (for example, survey results, service levels, fees);
• Issues for consideration related to future legislation or regulation;
• Opportunities to increase professionalism within the sector;
• Areas for improvement for the sector with respect to consumer protection; and
• Input related to significant initiatives for the real estate service sector. 

The IAC is not meant to consider or make recommendations on items that fall into the authority of RECO’s Registrar with respect to enforcement. 

II. Authority

The role of the IAC is advisory. Any advice or recommendations will be reviewed and considered by the Board and may or may not result in action. 

The role of the IAC does not include:

• Decision-making on strategic, operational, or policy priorities;
• Decision-making on allocation of financial and human resources;
• Representing RECO to the public, including the media and other agencies; and 
• Considering or making recommendations on items that fall into the authority of RECO’s Registrar with respect to enforcement activities.  

The IAC Chair will make a report to the Board on an annual basis, or more frequently, as required. Meeting minutes will be available on RECO’s website once approved by the IAC, and a summary of its work will be included in RECO’s annual report. 

III. Chair, Vice Chair and membership composition

1. The Committee shall consist of a minimum of five and up to 10 members, subject to the criteria identified in section IV. 
2. This shall include a Chair appointed by RECO’s Board of Directors from among the Board’s Sector Directors. 
3. The inaugural Vice Chair will be selected by RECO’s CEO and the outgoing Consumer and Industry Advisory Group (“CIAG”) Chair, and thereafter, the Vice Chair will be selected by the IAC from among its members. 
4. Inaugural members of the IAC will be selected by the CEO, the outgoing CIAG Chair, and the incoming Chair. In the event that the incoming Chair is not yet appointed by the RECO Board, the CEO and the outgoing CIAG Chair will select the inaugural IAC members. Thereafter, members of the committee will be selected by the IAC Chair, RECO’s CEO, and the IAC Vice Chair, from a list of candidates provided by RECO’s management, vetted through a selection process. 

IV. Membership criteria

IAC members will be selected based on the criteria outlined below, in line with the Minister’s Order dated January 3, 2024.

Members will be drawn to represent the interests of registrants with diversity across the real estate services sector, including:

• Registered agents or brokers;
• Individuals who are directors, officers, employees, or agents of registered brokerages; and 
• Members, officers, employees, or directors of industry associations. 

Members of the IAC must: 

• Possess a positive orientation to RECO’s consumer protection mandate;
• Understand RECO’s mandate and have a commitment to its values, goals, and objectives; 
• Represent the interests of the real estate services sector as outlined by the Minister’s orders; 
• Bring a balanced approach to making recommendations that are effective, practical, and implementable; 
• Be willing to adhere to confidentiality obligations and conflict of interest requirements; and
• Have time and availability to prepare for and attend IAC meetings. 

In addition to the requirements outlined above, RECO will endeavour to ensure that members of the IAC:

• Represent diversity in Ontario and include a range of perspectives (ethnic, gender, age);
• Represent geographical diversity in Ontario; 
• Have demonstrated credibility, integrity, and high ethical standards in their business dealings, and shall not have any disciplinary action recorded against them by RECO;
• Are not employees of RECO nor connected by family or association with employees of RECO; and 
• Are not a member of the RECO Board (other than the IAC Chair) or connected by family or association with a RECO Board member or members of any other RECO advisory committees or groups.  

V. Terms 

Inaugural members of the IAC will be appointed to serve variable terms of two, three, or four years. 

The inaugural IAC Chair will be appointed to serve for a term of up to two years, but not longer than his or her Board term. The Board will continue to appoint the IAC Chair when a vacancy is contemplated.  

The Vice Chair will be appointed for a term of two years.  

Upon the completion of the terms of the inaugural IAC members, new members will be appointed to serve a term of three years. Returning members may be eligible for reappointment at the end of their term at the discretion of the CEO and IAC Chair subject to a limit of two terms or maximum seven years. 

VI. IAC Chair, Vice Chair, and member responsibilities

RECO will provide an orientation for new members, providing an overview of RECO’s Business Plan, the IAC’s mandate, and member roles and responsibilities. 

The IAC Chair is responsible for:

• Liaising with the CEO or delegated RECO staff members to establish IAC agendas, reports to the Board, etc.; 
• Presiding over meetings;
• Reviewing meeting minutes and materials in advance of IAC meetings;
• Meeting with the CEO and/or other delegated RECO staff, or IAC members with respect to matters before the IAC; 
• Providing a report to the Board annually on the activities of the IAC. 

The IAC Vice Chair will assume the responsibilities of the Chair in the event of the Chair’s absence. 

IAC members are expected to:

• Prepare for, attend, and participate in all scheduled meetings;
• Be responsive and provide timely advice to RECO during and between meetings;
• Be sufficiently familiar with RECO’s mandate and activities to fulfill the purpose and objectives of the IAC;
• Safeguard the confidentiality of materials and discussions, including refraining from posting any details on social media or other electronic platform; and
• Refrain from using participation in the IAC to gain benefit or influence RECO or any other organization in a way that may be considered a perceived, potential, or actual conflict of interest.

Each IAC member shall sign a Confidentiality Agreement and Conflict of Interest Declaration and attest to compliance annually. IAC members may also be required to confirm acceptance of other RECO policies, applicable to committees, as applicable. 

VII. Meetings and reporting

The IAC will hold at least two meetings per year. Additional meetings may be called at the discretion of the IAC Chair and CEO in the event relevant issues arise between meetings. 

Meetings will generally be held virtually. While meetings can take place without a simple majority of IAC members present, formal recommendations to RECO’s Board require a simple majority of those IAC members in attendance. 

The CEO and IAC Chair are responsible for setting the agenda for IAC meetings, with input from members and management. The meeting agenda and supporting materials will be sent to each member in advance of the meeting. 

Meeting minutes will be prepared by RECO for approval of the IAC at either its subsequent meeting, or via the approval of a majority all sitting IAC members by email. Upon IAC Chair and CEO approval, minutes will be posted on RECO’s website and will be provided to the Board at its next scheduled meeting.  

RECO will provide administrative support to the IAC, such as scheduling meetings, distributing meeting materials, and drafting minutes. 

RECO’s CEO and the IAC Chair, upon consultation, may jointly determine that it would be beneficial to the group’s understanding of a specific agenda item to invite an industry professional or other expert to attend a portion of an IAC meeting.  

VIII. Termination of membership

Members may resign from the IAC at any time by giving written notice to the IAC Chair or the CEO of RECO. 

Membership may be terminated by the CEO, in consultation with the IAC chair, for any of the following reasons:

• Poor attendance;
• Ineffective engagement and contribution at IAC meetings;
• Breach of confidentiality or conflict of interest requirements; 
• No longer eligible under item IV; or
• Other reasons as determined by RECO. 

IX. Remuneration and expenses

IAC members are eligible to receive a per diem according to RECO’s non-board committee remuneration policy. For certainty, notwithstanding the IAC Chair is a Director on the RECO Board, the IAC Chair is eligible to receive a per diem solely according to the non-board committee remuneration policy.

Members are able to claim out-of-pocket travel expenses to attend in-person IAC meetings in accordance with RECO’s Policy on Reimbursement of Expenses. 

X. Review

These terms of reference will be reviewed every other year, or more frequently, as required.