The FSA has banned two mortgage brokers for giving potentially unsuitable advice to around 250 customers.
Derrick Whewall and Alan Hewitt, partners of Wakefield-based Mortgage Exchange, were banned for failing to meet the regulator's standards for competence and capability, the FSA says.
It says the duo failed to put in place procedures to prevent potentially false applications being submitted through their business.
Jonathan Phelan, director of enforcement at the FSA, says: “The partnership’s systems and controls, management information process and monitoring of advisers fell way short of what is required creating unacceptable risks relating to unsuitable advice and financial crime.”
The pair also failed to ensure customers received suitable advice, and the FSA estimates around 250 customers were put a risk of receiving unsuitable recommendations.
The firm failed to record sufficient information of customer needs or document why it had recommended particular products.
As a result, both Whewall and Hewitt are banned from regulated business, while The Mortgage Exchange has hired a skilled person to review client files and establish whether any consumers were damaged by the advice given.
If you would like to comment on this story, contact:
Tel: 020 7484 9805
e-mail: [email protected]
Achievements, charity work and other happy snippets
Laughable excuses for persisting
Spent 56 years at Schroders
Warns on profits