A mortgage broker had his approval withdrawn for failure to satisfy the fitness and propriety criteria due to a failure to attend a compulsory FSA interview, failure to provide documents and information in response to a compulsory requirement and failure to respond to other FSA communications. The firm’s permission was cancelled as a result. It was failing to satisfy threshold condition 5 having regard to all the circumstances, including its connection with its sole approved person and controller and the need to conduct its affairs soundly and prudently having breached Principle 11, lacking a competent and prudent management and having an unfit controller.
View Olayinka Oladipupo, 12 January 2009
View Trinity Network Services Limited, 12 January 2009
A mortgage broker was fined £35,000 and required to appoint a skilled person to review its systems and controls in relation to financial crime risks. It had breached Principles 3 and 9 because it had failed to take reasonable steps to ensure that: (1) it had adequate systems and controls in place to counter the risk of financial crime (having submitted mortgage applications containing false or misleading information); (2) its recruitment process was sufficiently robust to ensure that all mortgage advisers were fit and proper; and (3) that it maintained appropriate records.
View Case Funding Centre, 18 December 2009
A mortgage adviser was prohibited for demonstrating a lack of integrity by failing to take steps to verify information provided by mortgage applicants, thereby failing to prevent the firm for which he held controlled functions being used to perpetrate financial crime. This was a settled case in which the FSA took the view that the individual’s error of judgment in not carrying out the relevant checks went beyond a lack of competence because, although he was aware of regulatory requirements and knew that he should have checked the income information provided by mortgage applicants, he failed to do so. By exposing the firm to the risk of being used to perpetrate financial crime, he acted recklessly and his conduct fell below minimum standards in terms of integrity.
View James Ian Shanks, 18 December 2009