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FSA bans and fines Bolton mortgage broker

The FSA has banned and fined a Bolton mortgage broker for failing to act with competence and capability.

Mortgage and insurance broker, Riaz Ahmad has been fined £5,000 and prohibited from working in regulated financial services for failing to act with competence and capability, which included failing to have suitable compliance and risk management processes in place at Finance.com.

Ahmad’s failings and the problems at Finance.com were initially picked up by an FSA team conducting an assessment focused on treating customers fairly as part of the FSA’s assessment programme for small firms.

As a result of these failings, customers were put at risk of receiving unsuitable mortgage advice and mortgage applications were submitted to lenders containing inaccurate and misleading information.

FSA director of enforcement and financial crime Margaret Cole says: “This action confirms our ongoing commitment to ensuring that customers are treated fairly and firms have the necessary procedures in place to make sure they are not open to being used for financial crime.

“When firms fall short of these requirements, we will not hesitate to take action and the worst offenders will be punished severely.”

The FSA says that had it not been for Ahmad’s financial hardship, the FSA would have sought a fine of £17,000.

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. Is there a common thread running through the recent bannings of brokers or am I imagining it?

  2. Good work FSA. Remember to keep an eye on the banks though. They can be tricky !

  3. Another example of the FSA whipping the small guy to show how tough they are.

    Whilst I don’t doubt there were good grounds for banning Ahmad the FSA just don’t use the same rhetoric when condemning the big financial institutions for their failings.

    Who at the banks have been fined or banned for their gross misjudgements in the run up to the credit crunch? Not even Fred the Shred!!!

    The FSA should not be crowing about how they have caught some small time cowboy who may have potentially jeopardised a handful of customers but should be jumping up and down on the deregulated banks for their inept performance of basic banking practise.

  4. yaaawwwwwwn………….boring boring…..another IFA gets hit. Off to work for a bank, they seem to be in an “FSA free zone”. zzzzzzzzzzz !!!

  5. Incompetent Regulators Awards Team 20th January 2010 at 11:04 am

    Unqualified regulatory staff banning unqualfied broker? This is very puzzling!!!!

  6. Once again the FSA bans and fines someone for, in their view, not having sufficient ‘procedures’ in place. Again there is no suggestion that any client has actually lost anything.
    Contrast this with the FSA’s own performance. Hector has, grudgingly, admitted that the regulator did not have the right systems and procedures in place to ensure that potential risk was totally eliminated. Small regulated firms are required to eliminate ALL potential risks unlike large banks and the regulator itself it appears.
    The difference in the ‘outcomes’ (they like ‘outcomes’ in Canary Wharfe) is vast. The number and amount of losses through small firms has been a miniscule percentage of that attributable to the large companies and Regulator failed to ‘regulate’ the banks to the extent that FOUR effectively went bust and had to be merged or sold off at vast loss to investors. Furthermore because of this the whole banking system had to be bailed out to the tune of ££££ BILLIONS.
    The FSA claims none of this is the Regulators FAULT so jobs, business and bonuses as usual, but just to show how tough they are they ban and fine as many little businesses as possible. The FSA’s ‘Competence and Capability’ are not in question, they have been proven to have failed to act with those qualities, but as they are answerable only to themselves then thats all OK then!!

  7. What I want to know is have the FSA ever stepped in whilst this sort of thing was going on, we all know that the self cert market has finished so is this just another example of the FSA closing the door after the horse has bolted.
    Anyway I’m sure the FSA inspection team stayed in a good 5 star hotel during the visit with plenty of room service.

  8. Why does anything the FSA do merely result in more FSA bashing in the comments section? I get bored of this, I really do.

    FSA identified a cowboy, who gives us ALL A BAD NAME! They banned him….so he is not a risk to the public, AND no longer a risk to the sometimes tattered credibility of our industry.

    When I talk about work to people it appears that everyone has an ‘IFA ripped me off story’. Sometimes I’d sooner say I was a journalist or politician….. However, this is getting less, as the old school flog it and chun merchants leave the industry. I long for the day that I speak to someone who waxes lyrical about how good their IFA is!

    I wonder if a certain section of people on here just hate having anyone regulating them, and wish it was a jolly old free for all, like the good old days?Well, those days have gone and we are rapidly moving into being a professional industry. If you don’t like it, retire…but get run off cover!

  9. Dathan Steele – let me ask you a question. Whats the difference between an IFA who missleads the public and is dishonest earning the wrath (quite rightly) of the FSA and the Banker who delgates the authority to an employee that results in the public being misled and casues banks to fall like a house of cards. When you have answered that, then ask yourself why do you think IFA’s are fed up with the FSA ONLY culling and fining the small IFA firms and Indepedant Financial Advisors, whilst leaving the bankers to continue demanding bonuses and using Gvernement money meant for the bailouts, but being spent on banker rewards and bonuses. Its called an unlevel playing field. The majority in fact all IFA’s will be glad the cowboys are being hounded out and prosecuted, but why just from the IFA sector. Bank staff are still churning critical illness policies and replacing in some cases with a term policy – where are the FSA – too busy gloryfying the fact they have banned another IFA.

  10. The FSA only ban small companies not banks!! This is stupid and unfair! Poor dude. they should investigate people working in banks too! They are catching the small fish, but they should catch the big sharks! what are they, cowards! i think so

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