FSA has fined a mortgage lender, Cheshire Mortgage Corporation Limited, and fined and banned its CEO and its compliance director, for failing to treat customers fairly in the sale of mortgages and arrears handling. The firm, which operates in niche markets including lending in the impaired credit market, failed to show that over a five-year period from the start of regulation of mortgage lending it treated customers fairly and sometimes treated them unfairly. Its lending practices did not test affordability and plausibility of information. Also compliance systems and controls did not identify these problems nor the fact that the firms’ lending guidelines were sometimes breached or waived by senior management. FSA also found a number of practices which meant the firm treated customers in arrears unfairly. Following a Skilled Persons report, the CEO, Henry Moser, has decided to step down. FSA fined Mr Moser £70,000 and has fined Andrew Lawton, the MLRO, £13,500 and banned him from holding any "significant influence function". It found Mr Lawton was knowingly involved in compliance breaches, whereas Mr Moser has made concerted efforts since 2008 to achieve high regulatory standards for the firm. (Source: Final Notice – CMCL, Final Notice – Henry Moser and Final Notice – Andrew Lawton)