Davis set up Ability Mortgage Solutions as a sole trader after her previous employer was made bankrupt and continued servicing her previous employer’s client base.
The FSA says Davis failed to establish appropriate systems and controls and did not understand the standards the FSA requires of authorised persons.
She also failed to take reasonable care to ensure suitable advice was given and could not prove she was providing sound mortgage recommendations.
The FSA says Davis employed a compliance consultant but when it identified areas of serious concern, she failed to act on the recommendations promptly.
The regulator also found that Davis failed to ensure sufficient information was obtained from customers before recommending a product, opening up the possibility that customers were offered unsuitable advice or sold inappropriate mortgages.
Davis acknowledged that the letters sent to customers documenting why a mortgage recommendation was suitable were generic and not tailored to the specific needs of the individual.
FSA head of retail enforcement Tom Spender says: “Being an authorised person requires a responsible and competent approach. Davis lacked both of these qualities which is why we have banned her and cancelled her authorised status.
“By failing to put suitable systems and controls in place, such as effective compliance monitoring and staff training, Davis demonstrated a lack of competence and capability, proving that she is not fit to perform a role of significant influence at an authorised firm.”