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Broker banned for systems open to risk

The FSA has banned Northern Ireland mortgage broker John Paul Keay for failing to have systems in place to prevent mortgage fraud.

The regulator says that Keay’s failures made the business a target for mortgage fraudsters and ruled he is not competent or capable of performing any functions related to regulated activities, including giving advice.

It has cancelled authorisation of his firm, Jack Keay Mortgage Services.

The FSA found Keay’s business was used for the submission of mortgage applications containing false information and supported by falsified pay slips, bank statements and employer references.

FSA head of retail enforcement Jonathan Phelan says many failings were identified in what he calls a “very small mortgage broker business”.

He says: “When concerns about mortgage fraud were drawn to his attention by a lender, he delegated the task of following this up to his appointed representative and never thought to check on the outcome or make changes to his systems.

“After the FSA showed him examples of types of falsified documents submitted to lenders through his business, he still failed to demonstrate that he understood the risks.”


The fee market

Mortgage arrangement fees have been increasing steadily over the last two years but the last few months have seen these charges rocket.

Building a position

By my reckoning, you need to be at least 40 years old to have a clear memory of what happened during the last recession, so many people are perhaps in denial about how bad things could get in the housing market. Nothing embodies this better than the TV property programmes, which seem to live in a wonderland of ever rising prices. Many people are going to be shocked.

Majority decisions

Iwas chatting to a good friend of mine who happens to be a long-standing IFA. Over the last 20 years or so, he has built up a business looking after the finances of many high-earning professionals and entrepreneurs.


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