Roger Collins was the only director and approved person in his firm Thoroughgood Harrison and Davies.
Among his failings, which put 300 customers at risk of receiving unsuitable advice, Collins allowed an unqualified mortgage adviser to give unsupervised advice to customers.
A number of client files were reviewed and it was apparent that inadequate affordability assessments were undertaken by the firm’s advisers.
One client was recommended a mortgage contract which exceeded his net income and others were recommended potentially unaffordable mortgage contracts which extended into their retirement.
Collins’ inadequate management and poor understanding of regulatory requirements led the FSA to conclude that he lacked the competence and capability to perform senior roles of significant influence at an authorised firm.
The firm has now been put in voluntary liquidation and is therefore no longer active in the market.
Collins would have been fined £30,000, but evidence was supplied which demonstrated that imposing such a fine would cause severe financial hardship and threaten Collins’ solvency.
FSA head of enforcement and financial crime Margaret Cole says: “Collins failed to manage his firm adequately and he failed to convince the FSA that he was competent and capable of performing “significant influence” functions at an authorised firm.
“Senior management who do not demonstrate the necessary skills to ensure their firms are properly run, and their customers are protected, will face tough sanctions.”