The FSA has today confirmed it will not be releasing the names of three firms referred to enforcement proceedings following the regulator's first major review of ‘higher risk' smaller mortgage firms since M-Day last year.
The FSA is also refusing to identify whether they are intermediary or other types of “firms”. Such refusal is standard practice in such cases, the regulator says.
According to a statement on the referrals to enforcement, they are based on cases of non-disclosure of adverse information during the authorisation process.
Additionally, two firms are being issued with private supervisory warnings, while another firm has agreed to cease trading after failing to hold adequate qualifications to write mortgage business.
Enforcement action comes after a review of 51 “firms”, looking at sales practices and training and competency levels.
Half the firms reviewed had no or minor problems, with most having appropriate systems and controls in place, the FSA states.
Andy Watson, Head of Mortgages and Credit Unions Department at the FSA, says: "Our findings are encouraging for an industry six months into regulation. The progress of 'higher risk' firms was a particular interest and whilst expecting to find failings we were encouraged by what we saw. However, as the enforcement action we have taken shows, we want firms to understand we are prepared to be tough and will take action where serious failures are found."
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