Four interim board members selected amid RECO governance overhaul

A screenshot of RECO’s administrator Jean Lépine during Thursday’s AGM.

Four out of five members of the interim Real Estate Council of Ontario (RECO) board have been selected, bringing deep leadership expertise and authoritative minds in sectors like energy, safety and banking. 

Administrator Jean Lépine – whose government-appointed position gave him the sole decision-making power on all items presented at the regulator’s annual general meeting on Thursday – approved a motion to elect three members, following Minister’s Orders established in April to reset the board with a renewed focus on independence, skills and consumer protection in the wake of the iPro Realty Ltd. trust account scandal. 

Who are the new board members?

RECO said candidates for election were selected following an independent recruitment process, supported by headhunting firm Boyden Canada. 

Colin Shaw was elected for a four-year term. In RECO documents distributed before the AGM, Shaw is described as a board director, governance educator and former chief audit executive with more than 30 years of leadership experience in “highly regulated and complex organizations” including OMERS, CIBC, Canadian Tire, PwC and American Express Bank of Canada. He currently serves in board leadership roles with BGC Canada and Badge of Life Canada.

Josie Erzetic was elected for a three-year-term. Erzetic is described as an accomplished chief executive and governance leader with more than 30 years of senior executive experience in regulation, public safety, energy, legal affairs, stakeholder relations and organizational transformation. She is the current president and CEO of the Electrical Safety Authority.

Jennifer Quaglietta will serve a two-year term. RECO highlighted her experience leading complex organizations through strategic transformation, regulatory modernization, digital innovation and organizational change. As CEO and registrar of Professional Engineers Ontario, Quaglietta is “spearheading a significant modernization agenda focused on strengthening public trust, regulatory effectiveness and operational excellence,” said RECO.

Minster’s appointment

Minister Stephen Crawford has appointed lawyer J. Mark Rodger as chair for a two-year term.

A senior partner at Borden Ladner Gervais LLP, Rodger specializes in commercial, regulatory and government relations components of electricity and natural gas markets, according to his page on the law firm’s website. He has served as a director of Logistec Corporation in Montreal and Emera/Nova Scotia Power in Halifax.

Crawford will provide an additional board appointee to form the five-person interim board in advance of the board assuming its responsibilities no later than Dec. 1. A longer-term transition to a full nine-member board is planned for a later date.

Where do agents fit in?

The prevailing question members had for RECO at the AGM was: how will the real estate sector be represented? 

Key to this new direction for the board is drawing a line between the governance of the regulator and those being regulated as real estate professionals. No active RECO registrants are eligible to serve on the board under this model. 

“In my opinion, this approach strengthens independent decision-making, enhances public confidence and aligns RECO with governance models used by many modern regulators and administrative authorities,” said Lépine during the meeting. 

When one member asked how registrants’ voices will be heard if they no longer have voting powers, Lépine pointed to Minister’s Orders that require RECO to establish a renewed industry advisory council by January 2027, which will act as a bridge from those working in the field to RECO.

“I think there’s an important distinction between providing input to the regulator and governing the regulator,” said Lépine.

“Registrants will continue to have meaningful opportunities to provide input on the important initiatives of the regulator, but that doesn’t mean they need to be on the governance side of this regulator.”

Operating with a “structural deficit”

RECO generated a deficit of $691,000 in 2025, according to last year’s annual report, compared to a budgeted deficit of $2.25 million.

By comparison, RECO recorded a surplus of $6.85 million in 2024. 

Registration fees – RECO’s largest source of operational income – declined by eight per cent last year. 

“A major contributor to that was a 2022 board decision (implemented in March 2023) to reduce registrant fees, resulting in $30 million in lost revenue by the end of this year at a time when the demands on the regulator have increased,”  said Lépine. “That’s something we need to solve, and we’re working on it.”

The 2026 budget forecasts an operating deficit of $12.4 million (excluding the registrant insurance program) to be funded through reserves.

Real Estate Magazine asked RECO after the AGM if it is considering raising fees, to which the regulator answered: “Ensuring financial sustainability is a top priority for RECO so that we can continue to fulfill our regulatory mandate effectively.”

“As part of managing our long-term fiscal health, we closely monitor and review all operational costs and revenue structures. We have no specific changes to confirm at this time, but maintaining a sustainable financial model is essential to our ongoing operations.”

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