The Financial Services Authority has removed a mortgage broker's authorisation to carry out regulated activities after it says he failed to control his business responsibly.
Paramjit Singh Bali, trading as Bali Financial Services in Southend-on-Sea in Essex came under investigation after the FSA was given information from a lender that it had removed him from its panel because of concerns about mortgage applications he had submitted. A second mortgage lender also provided information to the regulator at a later stage in the investigation.
Bali was found to have failed to organise and control his business responsibly and effectively in order to comply with regulatory requirements as well as demonstrating an inability to identify and take action against any unusual, suspicious or potentially fraudulent mortgage applications, and further failed on several occasions to deal with the FSA in an open and cooperative way.
The regulator says it came to the conclusion Bali was not, and would never be, ready willing and organised to comply with its’ principles for businesses.
Michael Lord, head of mortgages and credit unions in the small firms division of the FSA, says: "It is essential that firms comply with our rules at all times and we will take the appropriate action when failures occur.
"We look at the way firms are organised and the systems and controls they have in place. We take these measures very seriously as they can help to prevent fraudulent mortgage applications. Firms must also ensure that customer files are correct and updated where necessary. They should be able to provide us with any files when requested to do so for supervisory purposes."
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