The FSA has published a public censure of PB Roberts Limited for poor record keeping and publishing unclear advertising material.
The Liverpool-based mortgage broker failed to demonstrate why it had recommended certain mortgages.
The firm also failed to show that it had offered customers the cheapest deal available to them, despite many of its customers being in the sub-prime and self-certified market.
Margret Cole, director of enforcement at the FSA, says: "PB Roberts Ltd placed its customers at risk and this is particularly serious when some of them were vulnerable consumers who had adverse credit histories or were trying to consolidate debts."
The firm also ignored previous warnings from the FSA regarding advertising material which generated sales of £11,802.
The firm published three mortgage adverts in local media which did not state precise fees or failed to display an APR figure and risk warnings prominently.
The FSA says the firm was open and co-operative and stopped publishing financial promotions in September 2006.
As such, the firm has received a public censure, has agreed to increase compliance monitoring for the next 12 months, and must have promotional material signed off by an appropriate expert.
Cole adds: "Firms need to know that it is unacceptable for them to publish unclear promotional material or put their customers at risk of receiving unsuitable advice. Mortgages are significant commitments for consumers and they need to be confident that they are being advised to choose the right product.”
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