View more on these topics

FSA fines broker £70,000

The FSA has banned London mortgage broker Grace Nmadibechi Ada Ukala and fined her £70,000 for knowingly submitting false and misleading mortgage applications.

Ukala was an FSA approved person and the director of Goldsparkle Consulting Services Limited, a small mortgage broker firm based in South East London.

She submitted five mortgage applications for herself supported by false and misleading income and employment information.

She also failed to accurately disclose her earnings from Goldsparkle to HMRC and misused funds that belonged to Goldsparkle to meet her personal mortgage repayments.

FSA director of enforcement Margaret Cole says: “This fine, which would have been £100,000 had Ukala not settled early, is aimed at deterring approved persons from getting involved in mortgage fraud. Her earnings, as stated in the mortgage applications, were considerably higher than the income she declared to HMRC. By knowingly submitting false and misleading mortgage applications, Ukala acted in a totally unacceptable fashion.

“Our work on mortgage fraud continues as a priority in our campaign against financial crime. We have banned more than 60 mortgage brokers over the last three years and we will continue to ban such people to reinforce the message that knowingly giving false and misleading information is dishonest and poses a serious risk to prospective lenders. We will continue to ban individuals who demonstrate a lack of integrity.”

Recommended

10

A blurry projection

The FSA has gone to great lengths to ensure advisers are taking heed of its pension switching review findings and changing their suitability processes accordingly.

Compulsion by another name

Paul King makes a case for compulsion in the UK regarding pension provision. What he seems to forget is that we already have compulsion and loads of it.

Europe: Volatile share prices create opportunities for long-term investors

Mark Page and Laurent Millet, managers of the Artemis European Opportunities Fund, look at why, how and where fluctuations in European markets can generate opportunities for their fund. When asked what the stock market would do next, John Pierpont Morgan is reported to have replied that “it will fluctuate”. His (apocryphal) answer proved accurate. Over […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Proportionate regulation
    I have no doubt the FSA have made the right decision in this case. What I would ask is whetehr this is proportionate to the systemic damage done by those higher UP teh food chain, i.e. lenders and their broker consultants along with the Banking Fraternity. Let’s see some of them dragged over teh coals too please, not just sable rattling and drum banging on small fry!

  2. Lenders responsibilities
    while it is obviously wrong for anyone to falsify mortgage applications I would agree that the FSA should be looking at systemic failings by lenders who turned a blind eye to mortgage submissions that did not stack up.

    As usual markt share and greed led many to accept applications that were in the very least “dubious” and now the FSa chooses to forget these facts and focus on small brokers who in many cases cannot defend themselves even if they have done nothing wrong.

    FSA compliance smacks of the scholl bully who only picks on the weakest as he knows the big guys have the muscle to defend themselves or is it that they themselves, the FSA have failed to regulate the lenders and don’t want to draw attention to themselves and their massive failings.

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