Lépine’s appointment set to wrap, new RECO board to take over

(The new board members set to take control of the Real Estate Council of Ontario (RECO). Left to right: Mark Rodger, Joseph Iannicelli, Jennifer Quaglietta, Josie Erzetic and Colin Shaw).

Nearly 10 months after he stepped in to take a leading role in the transformation of the Real Estate Council of Ontario (RECO) at a tumultuous time, Jean Lépine says the regulator is ready to move forward without him. 

RECO said this week it will transition authority to its new interim board of directors on Sept. 9. 

Lépine was appointed administrator last November to assume control of RECO during the fallout of the iPro Realty Ltd. trust account controversy. The decision came following Minister Stephen Crawford’s review of a scathing audit by Dentons Canada LLP of RECO’s handling of the $10-million iPro Realty Ltd. fraud scandal.

“Over the past several months, with support from industry leaders and their associations, we have made tremendous progress towards building a modern, transparent and proactive regulator that firmly puts consumer protection first,” said Lépine in a statement. 

“That progress reflects stronger collaboration with sector professionals and the commitment of RECO’s leadership and staff, who have driven significant change across the organization.”

Crawford signs off on transition

In a letter dated Sept. 2, Crawford accepted Lépine’s recommendation to transition to board governance and issued an order concluding his appointment, effective Sept. 8. 

In the letter, Crawford said he expects a final written report from Lépine by his last day. The final report will be made public on RECO’s website, it says. 

“As RECO enters its next phase, I am confident that the interim board and management will build on the foundation you have established and continue advancing RECO’s governance, regulatory effectiveness and consumer protection mandate,” said Crawford. 

Period of significant change

In a statement, RECO highlighted the reforms it make under Lépine’s watch to strengthen consumer protection and regulatory effectiveness.

The reforms, according to RECO, include more proactive, risk-based and data-informed approach to industry oversight; enhanced trust account measures; renewed organizational leadership and capacity; and a new independent, skills-based governance framework. 

RECO also established a Roadmap to Enhanced Consumer Protection to steer the next phase of its regulatory modernization plan.  

“The transition does not mark the completion of RECO’s transformation, which is a multi-year undertaking. With the foundation, governance and leadership now in place, the work will continue under the oversight of the new board,” said Lépine. 

Who are the new interim board members?

At its annual general meeting in June, 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. He is a seasoned board director, governance educator and former chief audit executive with more than 30 years of leadership experience in organizations such as 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 has 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. As CEO and registrar of Professional Engineers Ontario, Quaglietta is credited with spearheading a modernization agenda focused on strengthening public trust, regulatory effectiveness and operational excellence.

Crawford also appointed two members. 

Mark Rodger, the incoming chair, was appointed for two years. He is senior counsel at Borden Ladner Gervais LLP (BLG), who has has practised law for more than 35 years specializing in Canada’s energy and infrastructure sectors. 

Joseph Iannicelli will also have a two-year term. Iannicelli is currently owner and president of PLAY 2 WIN INC., and is an executive coach, life coach and career transition coach. He is also a member of the board of directors for the Financial Services Regulatory Authority of Ontario (FSRA), serving as chair of the Human Resources and Governance Committee. 

Among the board’s first priorities will be appointing a CEO.

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