FSRA says the manager breached the Pension Benefits Act by failing to remit contributions from February 2026 to January 2027
Flato Management Inc. must remit all outstanding contributions, plus interest payable from the date the contributions were due to the date payment is made, to the custodian of the Pension Plan for the Employees of Flato Management Inc., Registration Number 1399419, no later than 10 days after the order dated October 6.
The Financial Services Regulatory Authority of Ontario (FSRA) enforcement record shows the order holding the company to account in three capacities at once, as pension plan administrator, pension plan sponsor, and pension plan employer.
FSRA states that Flato Management contravened section 55(2) of the Pension Benefits Act, R.S.O. 1990, c. P.8 by failing to remit contributions to the plan from February 2026 to January 2027.
Tim Thomson, Director, Pension Plan Operations, signed the order in Toronto on October 6, by delegated authority from FSRA’s chief executive officer.
The regulator issued it because Flato Management did not request a hearing before the Financial Services Tribunal or contest the decision.
The director issued a notice of intended decision on August 25, under section 89 of the act, proposing an order under section 87 respecting the plan.
Delivery to Flato Management Inc. followed on August 26, and section 89(6) gives any person served 30 days from receipt to request a hearing by the Financial Services Tribunal.
Flato Management Inc. submitted a Form 7 – Summary of Contributions for the 2026-2027 plan year after the notice was issued, per the order.
The Registrar of the Tribunal confirmed on October 1 that no hearing had been requested, and the director made the decision under section 89(7).
FSRA’s published enforcement entry for the plan administrator carries the same file alongside separate entries for the sponsor and employer capacities.
The regulator has pursued comparable remittance failures through notices against a pension plan sponsor in Ontario, where the Financial Services Tribunal ruled on October 13 in Higginson Equipment Inc. v. Ontario (CEO of FSRA), 2026 ONFST 17.
The Ontario Superior Court of Justice appointed TDB Restructuring Limited as receiver and manager, without security, of Flato Greens Inc., Dundalk Mixed Use Expansion One Inc., Patterson Street Holdings Inc., Flato North Village Dundalk Inc., Braemore Dundalk Two Inc., Melancthon Meadows Inc., and 2760562 Ontario Inc. by order dated June 23, as set out in the receiver’s notice and statement dated July 2.
Dorr Capital Corporation and Olympia Trust Company brought the application, and the plaintiffs’ motion record dated June 8 names Flato Management Inc. and Shakir Rehmatullah among the defendants, describing the remaining two defendants as guarantors of the indebtedness.
Insolvency Insider Canada, in its summary of filings profiled in the second quarter of 2026, records the appointment as following defaults under five cross-defaulted loans, with properties in Dundalk, Melancthon, and Beeton, Ontario.
Rehmatullah is founder and president of Markham, Ontario-based Flato Developments, CBC News reported in 2023.
