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FSA bans broker for compliance abuses

The Financial Services Authority has banned John Vincent Burton from carrying out any regulated activities for flouting regulatory requirements.

The FSA is not satisfied that Burton, director of Mortgage and Finance Club Limited, is “sufficiently competent and capable to perform any functions in the regulated financial services industry”.

The regulator received information from two lenders who removed MFCL from their panels of mortgage intermediaries because of the risks posed to them by doing business with MFCL.

Burton personally certified clients’ identification documents without taking any steps to check whether they were authentic, failed to identify at least 100 mortgage applications that were submitted with false supporting documents, failed to maintain a business register and did not keep training and competence records.

Additionally, it expressed no intention of changing his processes or adopting different business practices to safeguard against being used by third parties to commit financial crime.

FSA head of mortgages and credit unions in the small firms division Michael Lord says: “Firms should comply with our rules at all times as they are in place to protect the industry and consumers. As this case demonstrates, we will take steps against firms and individual managers that do not take appropriate steps to prevent their businesses being used to submit fraudulent mortgage applications.

“Firms must have appropriate systems and controls in place to monitor their businesses and maintain adequate records for clients and staff. Mr Burton could not satisfy the FSA that he would be able to comply with our regulatory requirements, professional obligations and ethical standards on an ongoing basis.

“By his misconduct he posed a risk to consumers, to confidence in the financial system, and to the fulfillment of the FSA’s financial crime objective.”

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