The FSA has banned a mortgage adviser for falsifying applications and fined the firm where he worked almost £12,000 for failing to keep an eye on him.
Ian Sanderson, of Mortgage Master Glasgow, deliberately entered false salary and employment details on around 20 mortgage applications between 2003 and 2007, the FSA says.
The regulator says Kilmarnock-based Mortgage Master’s supervision of Sanderson’s activity was “seriously below standard” and has fined the firm £11,900.
It has also said the company must review all of Sanderson’s mortgage files and inform lenders and clients of cases where false information has been included in applications.
Jonathan Phelan, FSA head of retail enforcement, says: “Mortgage Master’s systems and control and its supervision of Mr Sanderson were seriously below standard.
“It is important that firms’ senior management take appropriate steps to prevent their advisers from using their firm to commit financial crime.
“Our actions in this case show we are serious about intensifying our crackdown on mortgage fraud.
“Firms and their managers will increasingly find themselves at risk of bans and heavier fines if they fail to take the necessary steps to prevent their firms being used for financial crime.”
The fine for Mortgage Master originally stood at £17,000 but the FSA lowered the amount because it says the company co-operated fully, has improved its systems and has terminated Sanderson’s contract. For more details on Sanderson's case, click here.
This year the FSA has banned 12 other mortgage brokers and one mortgage introducer for involvement in submitting false mortgage applications.
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From 1 March