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FSA bans mortgage network chief executive

The FSA has withdrawn the approval for Premier Network Group chief executive Steven Moorley, ruling that he lacks competence and capability.

The regulator says Moorley failed to manage and control the expanding network of mortgage brokers.

It adds that he failed to ensure the network properly handled complaints, failed to submit complete and accurate information in its regulatory returns and did not take appropriate action when some ARs were removed from lenders’ panels.

PNG closed to new business on February 16. It went into administration in May and owes an estimated £132,000 to creditors including former appointed representatives, providers and HMRC, but has just £5,000 in assets with no funds set aside for liquidation costs.

The FSA says as a result of his failings some of the network’s appointed representatives “took advantage of the weak systems and controls by submitting fraudulent mortgage applications and recommending unsuitable mortgage contracts”.

The regulator says it would have imposed a financial penalty of £30,000 on Moorley, but evidence suggested that the fine would have caused him financial difficulty and threatened his solvency.

FSA director of enforcement Margaret Cole says: “Senior management of authorised networks are responsible for the quality and integrity of financial advice conducted in their names. This case highlights the risks posed by limited control and oversight of appointed representatives.

“Moorley’s conduct was particularly serious because it exposed customers to the risk of receiving unsuitable advice and allowed the network to be used by some of its appointed representatives to submit fraudulent mortgage applications.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Michael White CEO Email Mortgages.com 1st September 2009 at 11:33 am

    FSA close the door after the horse has bolted..again!
    No Sh++ Sherlock,…priceless.

  2. Stunning stuff
    You couldn’t make it up could you? Who decided that the mortgage and insurance market didn’t need the reasonably strict ‘approved persons’ regime that the investment sector has? More to the point, who persuaded the FSA that this was the way forward? Time and again we see someone ‘banned’ after the damage has been done, if any has actually been done of course. There are many more firms the FSA needs to run the magnifying glass over, no doubt it will be too late on each and every occasion.

  3. FSA bans mortgage network CEO.
    Hopefully we will see the FSA take action against some of the other controllers of failed mortgage networks. I can think of one very large mortgage network which recently failed that should have the directors and controllers looked at.

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