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.