A Kelowna mortgage broker is on the hook for a total of $28,000 for failing to declare a potential conflict of interest in time and being late with other paperwork.

According to a June 17 BC Financial Services Authority decision, submortgage broker Alan James Fetterly failed to make proper disclosures to borrowers and lenders in mortgage applications for three properties in 2022 and 2023.

One application concerned a Kelowna investment property in which one of the buyers had taken three mortgages. Fetterly was related to one of the co-lenders.

The BC Financial Services Authority said this gives rise to a conflict of interest.

Fetterly said he told the borrower that he was related but failed to submit the correct paperwork due to an “administrative oversight.”

Other paperwork for the mortgage arrived almost four months after the funding.

In another mortgage for a property in Lake Country, paperwork arrived almost a month after funding, and paperwork for another property in Kelowna was 12 days late.

“Fetterly says that the forms were provided late due to administrative oversight,” the decision reads.

The financial regulator said none of the borrowers or lenders suffered any financial loss because of the issue.

Nonetheless, the regulator issued Fetterly a $20,000 fine and ordered him to pay $8,370 in costs.

Last year, Fetterly was fined $30,000 by the BC Securities Commission for brokering three syndicated mortgages between 2018 and 2024 in which he made $50,000 commission.

The BC Securities Commission found the syndicated mortgages meant he had to be registered under B.C.’s Securities Act, which he wasn’t.

“There is no evidence of investor harm and Fetterly had previously received legal advice which failed to identify that brokering syndicated mortgages would trigger securities laws,” the BC Securities Commission said at that time.