A former broker has been fined £16,000 and banned from working in the industry again for selling high-risk shares to customers without their consent and using high-pressure sales tactics.
Baljit Somal, who worked at Square Mile Securities for five years from 2002, recorded the purchase of almost £60,000 worth of shares against client accounts without permission.
The FSA says the customers would have only known about the sale when they received a demand for payment.
The regulator reviewed 11 transactions, including recorded telephone calls, involving Somal between December 2005 and May 2006.
It has also taken action previously against Square Mile and another of its former brokers, Mohammed Miah. The cases were in January and February this year.
Margaret Cole, FSA director of enforcement, says: “Mr Somal used his position of trust to take unfair advantage of his customers, who expected him to be honest and to treat them fairly.
“Approved persons should take notice that the FSA expects them to always act with integrity towards their customers. We will continue to take action against any individuals that fail to do so.”
Somal received a 20% discount under the FSA’s executive settlement scheme. The fine would otherwise have been £20,000.
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