The Financial Services Authority has barred John Vincent Burton, director of Mortgage and Finance Club Limited, for his failure to protect against fraudulent mortgage applications.
The action comes after the FSA received information from two lenders who removed MFCL, based in Newham, London, from their panels of mortgage intermediaries because of the risks posed to them by doing business with the firm.
The FSA says it is not satisfied Burton is sufficiently competent and capable to perform any functions in the regulated financial services industry.
In particular, Burton:
- Personally certified clients' identification documents without taking any steps to check whether they were authentic;
- Failed to identify at least 100 mortgage applications which were submitted with false supporting documents;
- Failed to maintain a business register;
- Did not keep training and competence records; and
- Expressed no intention of changing his processes or adopting different business practices to safeguard against being used by third parties to commit financial crime.
Michael Lord, head of mortgages and credit unions in the small firms division of the FSA, says: “As this case demonstrates, we will take steps against firms and individual managers that do not take appropriate steps to prevent their businesses being used to submit fraudulent mortgage applications. Firms must have appropriate systems and controls in place to monitor their businesses and maintain adequate records for clients and staff.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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