The FSA has fined three mortgage brokers a combined total of over £37,000 for failing to demonstrate that they had recommended affordable mortgages to their clients.
The largest fine of £14,700 was handed to Mohammad Rana, registered as Countrywide Management Consultancy and trading as Property Compass.
Peter Scott, trading as Mortgage House, was fined £11,900, while Chariot Mortgage Services Limited was fined £10,500.
According to the FSA, all three brokers failed to gather adequate personal and financial information from their customers.
Countrywide also failed to ensure one of its advisers was appropriately monitored and supervised, while Peter Scott did not have a clear understanding of the FSA’s requirements to ensure he gave suitable advice to customers.
In addition, Chariot was found to have told customers that it could source products from the whole of the market when this was not the case.
Jonathan, Phelan, FSA head of retail enforcement, comments: “It is deeply disappointing to find that mortgage brokers visited by the FSA are falling short of basic standards aimed at ensuring that they treat their customers fairly.
“Where we have concerns about the quality of the mortgage advice given, we will continue to require mortgage brokers to undertake reviews of past business, often at considerable cost to them, to identify and remedy any unsuitable advice.”
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