FSA says Mortgage Times had shortfall of nearly £1m
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The FSA has issued Mortgage Times with a final notice, revealing the network is in breach of its regulatory capital requirements with a shortfall of £971,060.
Earlier this month HM Revenue & Customs sought the winding up of Mortgage Times but the court hearing was adjourned.
The network’s management emailed advisers before Christmas to say that the firm had ceased trading and cancelled its FSA permission, leaving appointed representatives unable to conduct business.
No administrator has officially been announced.
The directors of Mortgage Times, Paul Carmody and Chris May, have set up a financial planning firm on the same premises as their former business, 247 Tottenham Court Road, although it has not yet gained FSA approval or been registered on Companies House.
The move sparked outrage from former Mortgage Times appointed representatives.
The FSA says that due to an inter-company loan to The Mortgage Times Group from The Mortgage Times Group Holdings, which it says there was no evidence would be repaid, a sum of £899,953 had to be discounted from its regulatory capital provisions.
This resulted in a shortfall of £971,060 against the FSA’s requirement that the network should hold £233,578.
The FSA has therefore cancelled Mortgage Times’ permission to carry on regulated activities.
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Readers' comments (1)
Thomas | 30 Jan 2010 5:47 pm
This cannot have happened overnight so why has the FSA not launched an investigation into the information provided by the directors of the Mortgage Times?
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