View more on these topics

FSA censures sub-prime brokers

The FSA has censured the directors of Lifestyle Finance Limited for failing to implement appropriate compliance and sales procedures to ensure customers were given suitable mortgage advice.

Michael Worthington and Darren Millington were the executive directors and main shareholders in sub-prime broker Lifestyle, which went into administration in May 2007.

The regulator found that the directors failed to ensure the firm put in place appropriate written sales and compliance procedures and operate in accordance with them.

They also did not complete a past business review within a reasonable timescale and therefore could not identify customers who might have been mis-sold mortgages.

The pair failed to ensure that their compliance department had sufficient experienced and qualified staff and did not properly control spending on staff salaries.

Worthington and Millington have agreed not to hold any job with significant management influence in the future.

FSA director of Enforcement Margaret Cole says: “It is the responsibility of a firm’s senior management to ensure that their business is meeting regulatory requirements. It is important that senior managers take the conduct of past business reviews seriously and this includes applying appropriate resources to them.

“Our action against Mr Worthington and Mr Millington should be a warning to others that approved persons will always be held to account whatever the status of their business.”

Recommended

Moneysupermarket.com encourages PPI

Moneysupermarket.com head of protection Emma Walker is urging consumers to protect themselves against redundancy by considering payment protection insurance.

Trouble brewing over TCF

Industry experts says it is time to scrap big T and little T and establish a single definition of tele-underwriting to comply with treating customers fairly.

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