James was the sole director and approved person of Orchard House. His wife Nicola James, who acted as the company secretary, was also banned for jointly submitting the application.
The FSA found that Mr and Mrs James obtained a bank loan of just over £9,000 including interest by submitting two false payslips with fake salaries and employment histories.
The FSA has also cancelled the permission of the firm.
FSA head of retail enforcement Jonathan Phelan says: “As the approved person at Orchard House Mortgages Limited Mr James had overall responsibility for ensuring that Orchard House conducted its business with integrity.
“He showed a lack of honesty and integrity in relation to his own personal financial dealings. Given our concerns about brokers’ use of false payslips on customers’ mortgage applications, we applied the same standards to him and we concluded that he could not be trusted to occupy any position in relation to customers’ mortgage applications.
“A prohibition order is therefore necessary in line with the FSA’s tough stance against people lacking honesty and integrity who wish to work in authorised financial services firms.”