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OFT warns loan brokers as licence is refused

The Office of Fair Trading has issued a harsh reminder to mortgage brokers that fail- ure to disclose drink and drug offences can lead to the refusal of a consumer credit licence.

The warning comes as Midwest Mortgage Management saw its licence blocked after associate Roy O’Grady of Birmingham withheld inf-ormation on convictions for class B and C drugs, affray and drink driving.

The OFT refused Midwest Mortgage Management a license after discovering that O’Grady had been convicted of offences which he had failed to reveal on the application.

The applicant failed to declare two of these convictions to the OFT and was found by the adjudicator to have committed an offence under the Consumer Credit Act of giving false or misleading information.

In considering fitness for purpose, the OFT also takes into account consumer complaints, evidence of unfair business practices and discrimination on grounds of sex, colour, race or ethnic origin.

OFT spokeswoman Julia Smith says: “We always consider the fitness of any applicant. In this case, he had withheld information and an adju- dicator found he simply was not fit to hold a licence.”

Hamptons International Mortgages associate direc- tor Jonathan Cornell says: “I guess the lesson is for those people with skeletons in their closets that financial services is not for them.”


‘Advisers are trading without PI’

The FSA is failing to crack down on firms operating without professional indemnity insurance, leading to concerns that IFAs could slip through the net, says Collegiate managing director Tony Howe.

ACA says retirement age should rise

The Association of Consulting Actuaries says tax increases are on the way as all the main political parties are shying away from the need to raise the state pension age.

Regulation costs take 20% of commission

Regulatory costs typically eat up 20 per cent of commission and are so high that they should be disclosed under the payment menu, says Informed Choice managing director Nick Bamford.


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