In 2008, there were 29 enforcement cases against mortgage advisers for fraud or mis-selling. Latest examples include:
- Dynamic Mortgage Brokers Limited (Dynamic) and one of its directors, Richard Kennedy, have been fined for obtaining mortgages using false and misleading information. In four applications, misleading information on addresses, earnings and employment were found, including the use of Mr Kennedy’s home address to support client mortgage applications. Mr Kennedy has been banned from performing any regulated activity and fined £101,106. Dynamic’s permission has been cancelled.
- Moses Luzinda trading as Remos & Co has been banned for submitting false mortgage applications. Moses Luzinda also breached Principle 11, requiring firms to cooperate openly with regulators and adequately disclose documents to the FSA. Moses Luzinda provided contradictory excuses to the FSA when refusing to provide client files.
- The FSA has also banned mortgage advisor John Cook and stopped the company where he was sole shareholder, Stone Financial Management Limited (SFML), from conducting any further business. SFML specialised in providing small mortgages. Mr Cook withdrew his FSA approval voluntarily when he failed to provide facts relevant to his fitness and propriety. The FSA banned Mr Cook, despite the voluntary withdrawal, after it found that he had fraudulently submitted mortgage applications.
These cases involving the most egregious conduct or fraud inevitably progress through the enforcement process first. We will watch with interest as the treatment of systemic advisory failings is publicised.