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FSA bans broker for misleading customers

The FSA has banned Mohammed Suba Miah, a former broker at Square Mile Securities Limited, and fined him £21,000.

The regulator found that Miah sold high risk shares to customers without their consent and deliberately mislead customers by not explaining the risks involved with such shares.

The FSA reviewed 19 transactions between December 2005 and May 2006 involving Miah and found that, in 11 of them, he had been dishonest by recording the purchase of high risk shares by customers without their permission.

According to the regulator Miah also made inaccurate and misleading claims about the performance and value of the shares and failed to inform customers of the higher risks associated with buying them.

FSA director of enforcement Margaret Cole says: “As a stockbroker and approved person Mr Miah was in a position of trust. Customers have a right to expect their brokers to give clear and fair advice, recommend suitable shares and to treat them fairly. Stockbrokers are on notice that the FSA will not tolerate abuse of this trust, and our actions against Mr Miah show that we take this very seriously.”

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