Unregistered Mortgage Broker Ordered to Pay $38,500 for Unauthorized Operations

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BC Financial Services Authority (“BCFSA”) has issued an administrative penalty of $35,000 to HYI Finance Inc. and Andrew Yau for operating as unregistered mortgage brokers. Additionally, they are required to pay $3,500 in investigation costs, bringing the total amount to $38,500.

BCFSA found that HYI Finance Inc. and Andrew Yau engaged in unregistered mortgage brokerage activities when they:

Operated a business of lending money secured in whole or in part by mortgages; and
During 2015 to 2017, lent money on the security of 10 or more mortgages.

HYI Finance Inc. and its director Andrew Yau performed unregistered activities contrary to the Mortgage Brokers Act by using its own funds to carry on the business of lending money secured by mortgages.

The order was made under the Mortgage Brokers Act (MBA) with a maximum available penalty of $50,000.

HYI Finance Inc. and Andrew Yau have no prior disciplinary history with BCFSA. The consent order signed February 20, 2025 requires that HYI Finance Inc. and Yau cease conducting business as a mortgage broker or submortgage broker in British Columbia until they are properly registered.

“Ensuring that mortgage brokers are registered and compliant with the Mortgage Brokers Act is crucial for protecting consumers and maintaining the integrity of the financial services industry,” said Jonathan Vandall, Senior Vice President of Compliance and Enforcement at BCFSA. “We will continue to investigate and discipline cases of misconduct to safeguard the public.”