The FSA has cancelled a mortgage broker’s permission to conduct regulated mortgage business (Newcastle Home Loans Limited , 20 July 2009) following the non-payment of a fine of £170,000 issued in February 2009 for submitting mortgage applications containing false information, such as the purchase price on which the loan was calculated, which induced the lender to advance up to 126% of the actual purchase price, and allowing David Purdie to act as Chief Executive without FSA approval (who was also banned) (Newcastle Home Loans Limited and NHL - David Purdie , 26 February 2009). The FSA has banned the firm’s directors, Linda Patterson and Grace Purdie for knowing involvement in the misconduct of the firm and, in the case of Mrs Purdie, issued a fine for £85,000 (NHL - Linda Patterson 26 February 2009 and NHL - Grace Purdie, 3 June 2009). Mrs Purdie was found to lack competence and capability, having delegated all her functions to her co-director and to her husband, Mr Purdie, and had little knowledge of her responsibilities as an approved person. In addition, the FSA banned two mortgage introducers, one of whom was a former director of the firm, for knowing involvement in the misconduct of the firm (NHL - Michael Foster and NHL - Michael Foster 26 February 2009).
The FSA has issued a public censure in respect of a financial advice provider for failing to ensure that its advice on pension income drawdown products was suitable. Conditions for the censure included: the voluntary variation of the firm’s permission to provide income drawdown advice without third party approval; undertaking to contact income drawdown customers; undertaking to use external compliance consultants for file reviews across its business; and undertaking a past business review. The cost of fulfilling these conditions was taken into account by the FSA, together with the ability of the firm to provide redress to customers in the future and the relatively low turnover and profit levels of the firm, in its decision to issue a public censure (Cheshire Life & Pensions Consultants, 30 July 2009).
The FSA has withdrawn the approval of a self-employed mortgage adviser and banned him for submitting mortgage applications containing income information which he knew to be false. In addition, he withheld information from a prospective employer regarding his suspension following an investigation by a mortgage intermediary and failed to disclose an ongoing disciplinary action investigation to the FSA. The adviser was also found to lack competence and capability for submitting two mortgage applications in his own name in which he mistakenly declared his gross annual turnover as income instead of net profits (Stephen Neil Sanders , 29 July 2009).
The FSA has published a Final Notice concerning Richard Blackwood trading as Meridian Loan Consultants cancelling his permission to carry on regulated activities (Richard Blackwood trading as Meridian Loan Consultants, 30 July 2009).