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FSA bans “incompetent” mortgage partner

The FSA has banned Nighat Mirza, a partner at a Manchester-based mortgage brokerage, for lacking competence and for failing to manage the firm’s affairs properly.

Mirza was a partner of KS Financial and became an approved person in October 2004, but had no mortgage qualifications.

Despite being a partner, the FSA says she had little knowledge of KS Financial’s mortgage business or the firm’s regulatory requirements. 

It says Mirza also had little involvement in the day to day running of the firm.

During its investigation, the FSA found that Mirza was absent for long periods due to illness. However, she had failed to properly delegate her significant influence responsibilities in this time.

As a result of her failings, Mirza did not perform her role as a partner to the required regulatory standard. Her incompetence put the firm’s customers at the risk of being treated unfairly and left the business open to threats of financial crime.

FSA director of enforcement and financial crime Margaret Cole says: “Mirza was incompetent and acted as an ‘absentee partner’ putting both KS Financial and its customers at risk. Engaging with the day to day running of the firm and how your customers are treated are important aspects of being an approved partner of a regulated business.

“Partners are responsible for making sure that their businesses are properly managed and must inform the FSA if they can no longer meet their responsibilities. Our action shows how seriously we expect senior management to take their roles. We will not hesitate to take action against anyone who fails to carry out their regulatory roles as required.”

Mirza’s failings were identified through the FSA’s assessment programme for small firms.

The FSA also considered fining Mirza £10,000 but decided this would have caused severe financial hardship and chose not to impose a fine.

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. how did she get authorised in the first place?

  2. Wow another really big fish that the FSA caufght,what a pity they were not so diligent with the banks .IFA’s could rightly ask why the phrase “Our action shows how seriously we expect senior management to take their roles” was not applied to Sir Fred and his cronies?

  3. Couldn’t agree more FSA regulation of the mortgage market started 31st October 2004, When did the markets go wrong during their reign. I would like to see their report on Halifax and the lack of proof of income or affordability on their Mortgage book.

  4. Another Welshman!

  5. Charles Mclaughlin 16th December 2009 at 10:59 pm

    Why do the FSA bother with then small fry like Mizra when by visiting just a few of the county’s credit unions they could find a multitude of directors who are totally incompetent, refuse to train or learn and hide behind the Abcul’s sample rule book which makes new directors sign a secrecy agreement that prevents them informing the members of the poor decision making of the board if they agree by majority not too

  6. JOGGA SINGH TEIDY...SAYS 17th December 2009 at 6:15 pm

    It all seems…if this if that from the FSA here…were anyactual customers disadvantaged? if not…then it is clear that the level at which the firm operted was adequate is it not…and no offence has been commited.

    Ilness..well…taking this into acount…it would be more a regualting activity tpo recommend a procedure to get the firm to reach their standard and moniter it say 12 months on…that way itst shows REGULATING is being done…and also recommend the actions the person needs to take within a time scale…to stay as they were in the firm…of course check compliance within a stated tike frame.

    Frankly…i don’t think people in public service know how to serve society…in this case the comnpliance officer…of course this is rampant in many Governement Depts…including the Police and especially the Judicery to mention a few…a change is needed in training of pubic servants…to be more of a serving type and more courageous to stand up to political masters…if their policy and decisions appear to create injustice ..as it very well appears to…to a firm..with an ill person..struggling to work and earn…..perhap no resources to deligate to staff…you get the picture…I think public servantsdo not feedback to ministers adequatly..so wrong incompetent decsions my ministers in form of policies..prevail…

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