The FSA has publicly reprimanded a mortgage broker for failing customers.In the first such disciplinary case against a senior manager of a mortgage and general insurance broker, the regulator found Essential Mortgages Limited chief executive Steven Leslie Davis to have “fallen well below acceptable standards in the way that he carried out his duties as a director of his firm” in a published statement of misconduct. EML, which ceased trading last year, left at least 350 customers without accident, sickness and unemployment cover because it failed to pass on insurance premiums to insurers because of “inadequate systems and resources”. Davis has not been fined, so his creditors can get as much redress as possible. But compliance consultant Adam Samuel argues that the FSA is acting beyond its powers in the case. He says because the failings surround ASU and because Davis was a regulated mortgage broker who ceased trading a week before GI was regulated in January 2005, the FSA is acting outside its powers. Samuel says: “He does not appear to have broken any statement of principle, at least in relation to the ASU policies because the principles did not apply to his business until it ceased trading.” FSA spokeswoman Sam Bennett says: “We believe we acted within our jurisdiction. The main thing is that Davis had overall senior management responsibility to oversee the entire business.”
Webline has announced a 250,000 investment in new developments for the portal as a result of adviser feedback.The selected enhancements will provide advisers with additional more advanced comparison facilities to provide a better service to the client and offer more opportunity to up-sell products.The other main area of development focuses on providing additional management information […]
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Bradford & Bingley has announced that it is to set aside a further £89.4m to deal with compensation for endowment and investment mis-selling.The announcement comes just as the FSA is expected to confirm that the industry as paid out £2.2bn in compensation for mis-selling of endowment mortgages, doubling over the past 18 months. B&B had […]
Interview with Simply Class’ first adviser, Elliot Silk.
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