The FSA has banned a former broker at Square Mile Securities for "dishonesty" and "misleading customers".
The regulator has fined Mohammed Suba Miah £21,000 for selling high risk shares to customers without their consent and deliberately misleading clients by not explaining the risks the shares involve.
Miah had behaved dishonestly in 11 transactions out of 19 between December 2005 and May 2006 by recording customers’ purchases of high risk shares without their permission.
The FSA says customers would only have become aware of the trades when they received demand for payment.
Miah also made inaccurate and misleading claims about the shares’ performance and value.
The FSA says it considers Miah's actions particularly serious because they lacked integrity and exposed customers to significant risk of financial loss.
Margaret Cole, director of enforcement at the FSA, says: "As a stockbroker and approved person Mr Miah was in a position of trust. Customers have a right to expect their brokers to give clear and fair advice, recommend suitable shares and to treat them fairly.
"Stockbrokers are on notice that the FSA will not tolerate abuse of this trust, and our actions against Mr Miah show that we take this very seriously."
Miah accepted he behaved improperly and co-operated with the FSA's investigation. He received a 30% discount on the fine under the FSA's executive settlement scheme.
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