View more on these topics

FSA bans two brokers for capability failures

The FSA has banned two Wakefield mortgage brokers for competence and capability failures.

The regulator says Derick Whewall and Alan Hewitt, partners of The Mortgage Exchange, did not ensure that the partnership gave suitable advice to customers, exposing about 250 customers to the risk of receiving unsuitable advice.

It also did not obtain and record sufficient information to establish customers’ needs and objectives and its assessment and recording of affordability of recommended mortgage contracts was inadequate.

The FSA also found that the brokers failed to ensure the partnership was organised so that it could identify and act upon obvious anomalies in false mortgage applications and help to prevent it being used by third parties to make mortgage applications on a fraudulent basis.

FSA director of enforcement Jonathan Phelan says: “The partnership’s systems and controls, management information process and monitoring of advisers fell way short of what is required creating unacceptable risks relating to unsuitable advice and financial crime. We are continuing to find instances where mortgage brokers are unwilling or unable to maintain the standards we require and where we come across this we will take action including banning them.”

Recommended

Standard in the vanguard

In November 2002, Standard Life quietly started something of a revolution in the financial services market when it became the first UK life office to give free access to stochastic modelling tools. This started a trend that has seen increasing numbers of firms put such tools at the heart of their advice process.

Reliance concern at FSA data

Kent Reliance Building Society has written to the FSA to express concern that it is asking for more information on the business than its own directors would normally have.

Protecting long-term savings from short-term policy

By Jamie Clark, Business Development Manager The pensions revolution is almost upon us. As with any revolution, there will be winners and losers. The winners in this case could presumably be the politicians that orchestrated pensions freedom and choice just before the general election. As for the losers, there may be many thousands of people […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com