View more on these topics

FCA ‘misled’ over cap ad as mortgage broker appeals

FCA05

A mortgage broker has referred an FCA decision to cancel his permissions to the Upper Tribunal as the regulator claims it was misled over the firm’s capital adequacy.

The FCA cancelled Michael Wilkinson’s permissions to carry out regulated activities in May for providing inaccurate information about his capital resources. The regulator also found he did not meet his capital adequacy requirements for the business.

Wilkinson was a sole trader at Huddersfield-based Michael Wilkinson Mortgages.

According to the recently published decision notice,the FCA started contacting Wilkinson in April 2015 about his capital position and concerns he was reporting inaccurate information in his regulatory returns.

Wilkinson, who was also a general insurance broker, had to meet a requirement for his business to either have capital of £5,000 or 2.5 per cent of annual income, whichever was higher.

However, the regulator found discrepancies between the financial information reported by Wilkinson in his annual accounts and regulatory returns.

According to the decision notice, the difference between the capital resources level reported in the annual accounts and the FCA’s retail mediation activities returns was £14,315 in 2012, £11,854 in 2013, and £8,482 in 2014.

The financial information supplied by Wilkinson showed his net liabilities for those three years were also below the required capital level.

The notice says: “The financial information reported by Mr Wilkinson in his RMARs since at least 1 September 2012 is…misleading in that it stated to the authority that Mr Wilkinson was meeting the capital resources requirement at the relevant dates whereas, based on the financial information reported by Mr Wilkinson in his annual accounts, he had not maintained adequate capital resources to meet the capital resources requirement.”

The decision notice also says the financial information reported by Wilkinson in his annual accounts show he had capital resources “significantly” below what was required between September 2012 and September 2014.

The notice says Wilkinson did not respond to a warning in April from the FCA saying it was going to take action.

The Upper Tribunal can dismiss Wilkinson’s referral or send it back to the FCA with further directions.

Recommended

FCA logo new 620x430.jpg

FCA investigates four unauthorised introducer cases

Four cases involving unregulated introducers have been referred to the FCA’s enforcement division in the past 12 months. A Freedom of Information request, submitted by Money Marketing, reveals the regulator saw 54 cases in the past year where an introducer was suspected of having an inappropriate influence over an adviser or other authorised firm. Not all […]

1

FCA sets out how it will investigate mortgage panels

The FCA has set out the scope of its investigation into how mortgage panel arrangements hurt competition and consumer choice. The regulator outlined its plans in May to examine competition in the market, including how consumers assess products, the impact of regulation and commercial relationships across the mortgage market. Speaking at an FSE event in […]

Happy employees - thumbnail

From wellness to wellbeing

By Martyn Anwyl, head of operations for corporate solutions at Buck Consultants at Xerox The idea of corporate wellbeing is evolving exponentially. As lines become increasingly blurred between organisational and employee responsibility, wellness becomes ever more entrenched into wellbeing.  In the infancy of wellness, if an organisation had a cycle-to-work scheme, or even a bowl of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Leave a comment