The regulator says Keay’s failures made the business a target for mortgage fraudsters and ruled that he is not competent or capable of performing any functions related to regulated activities, including giving advice.
It has also cancelled his business’ permission so Jack Keay Mortgage Services is no longer an FSA-authorised firm.
The FSA found that Keay’s business was used for the submission of mortgage applications containing false information and supported by falsified pay slips, bank statements and employer references.
Even after a lender had identified shortcomings and stopped doing business with Keay, and after the FSA had explained to him the nature of the fraud, he failed to demonstrate that he had made appropriate changes to mitigate any future risk.
FSA head of retail enforcement Jonathan Phelan says Keay’s business was used to commit mortgage fraud.
He says: “We identified many individual failings in what is a very small mortgage broker business. When concerns about mortgage fraud were drawn to his attention by a lender he delegated the task of following this up to his appointed representative and never thought to check on the outcome or make changes to his systems.
“After the FSA showed him examples of types of falsified documents submitted to lenders through his business, he still failed to demonstrate that he understood the risks.”