Dealers will have received a notice from OMVIC back in August about some changes the Ministry of Public and Business Service Delivery and Procurement and the Ministry of Transportation have made to the use of Powers of Attorney (POA) for vehicle registration.

https://tinyurl.com/2wx7hjch

We are writing to inform you of important updates regarding changes to restrict the use of a Power of Attorney (POA) and a New Vehicle Information Statement (NVIS). Effective September 9, 2024, the following changes will be implemented for motor vehicle registration to enhance the security and integrity of dealer transactions.

Key changes as outlined below:

• Power of Attorney (POA) changes:

• A POA will no longer be accepted from individuals who request transactions on behalf of an Ontario dealership.
• Exemptions: individuals registering an out-of-province leased vehicle and individuals buying out a leased vehicle.

These changes are part of a suite of reforms the Ministries have made, and more are planned, to try and address the exploding problem of vehicle fraud and theft affecting our registry systems. The problem is the criminals know the system and how to exploit our processes.

What was a little unfortunate about the notice was it did not make it clear that the changes do not affect dealer transactions. The restrictions outlined in the OMVIC bulletin apply only to individuals requesting transactions on behalf of Ontario dealerships. This should not require any changes to your current business practice.

This confusion resulted in a fairly large number of panicked calls to our office. Dealers often rely on POAs to get deals done where, for example, one dealer is buying a vehicle from another dealer or to finance to a consumer or lease, and the dealers are far apart geographically making registration difficult without the use of POAs.

These are the rules in place since 2011 as to Business Powers of Attorney, forms are available at Service Ontario Licence Offices:

Power of Attorney (POA) Document Checklist for Businesses Effective June 27, 2011

The following elements must be present on the POA document for businesses in order for a corporation to be able to complete a vehicle transaction on behalf of another corporation.

1. The document must be clearly labelled “POWER OF ATTORNEY”.
2. The document must include the complete legal name, operating name (if applicable) and full current address of the “grantor” (i.e. leasing company, finance company, auction or dealer).
3. The document must include the complete legal name, operating name (if applicable), and full current address of the “attorney” (i.e. the company name of the vehicle dealer or auction).
4. An authorized representative from the “grantor” must sign and date the document. An electronic or photocopied signature of the authorized individual is acceptable.
5. There must either be a statement accompanying the signature of the grantor’s authorized signing officer that says “I/We have authority to bind the corporation” OR a corporate seal beside or near the signature.
6. An authorized representative from the “attorney” must sign and date the document. The document must contain the original signature of the authorized individual.
7. The POA must describe the power being granted. The power may be specific to certain types of activities or it could be general.
8. Other elements may be necessary depending on the nature of the power granted. For example, where the power is effective for a limited time and/or for certain dates, such times and/or dates must be clearly specified.

NOTE: Auction houses that have an existing POA on file at a ServiceOntario Centre:

• If the POA on file has an original signature of the grantor, it does not require the original signature of the attorney.
• If the POA on file does not have an original signature of the grantor, the original signature of the attorney is required.
• Additionally, where any conditions in the POA change, a new POA is required and must comply with the requirements in the checklist.

We will, of course, continue to work with both Service Ontario and the MTO as these reforms play out. We will keep our members informed, as always.