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FSA action against mortgage broker

The FSA has ordered a mortgage adviser to stop carrying out regulated activities for failing to organise and control his business responsibly and effectively.
The regulator says it took action after receiving information from a lender that it had removed the adviser, Paramjit Singh Bali, from its panel due to concerns about mortgage applications submitted to it by Bali.
Another lender also provided the FSA with assistance at a later stage in the case.
The FSA says the key reasons for the action were Bali’s failure to comply with regulatory requirements, inability to identify and take action against unusual, suspicious or potentially fraudulent mortgage applications and failure to deal with the regulator in an open and cooperative way.
FSA head of mortgages and credit unions Michael Lord says: “It is essential that firms comply with our rules at all times and we will take the appropriate action when failures occur. We look at the way firms are organised and the systems and controls they have in place. We take these measures very seriously as they can help to prevent fraudulent mortgage applications. Firms must also ensure that customer files are correct and updated where necessary.
They should be able to provide us with any files when requested to do so for supervisory purposes. In this case we found that Mr Bali was not, and never would be, ready, willing and organised to comply with our regulatory requirements. Therefore, we have taken this action to stop him working in the regulated financial services industry to help maintain confidence in the financial system and in support of the FSA’s financial crime objective.”

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