The FSA has banned Manchester mortgage broker Arthur Kirk, trading as Grosvenor Mortgage Advice Centre, for failing to establish proper systems and controls at his business.
Grosvenor Mortgage Advice Centre's permission has also been cancelled.
The regulator says the firm was at risk of being used for financial crime, particularly mortgage fraud, and customers of the firm were exposed to the risk of receiving unsuitable advice on mortgage contracts.
Customers were exposed to the risk of receiving unsuitable advice, lenders to the risk of making loans on the basis of inaccurate information due to his actions.
He also did not have a process for obtaining evidence of customers' income. Adequate checks were not carried out to ensure that information provided by customers was accurate and sufficient due diligence to identify false and misleading information provided by customers was not applied.
When FSA staff visited the firm in 2007 and 2008 and set remedial action, Kirk failed to implement them. At an interview with the FSA investigators on 16 January 2009, he stated he relied on the information provided verbally by customers among other admissions.
Margaret Cole, FSA director of enforcement, says Kirk lacked competence and capability and showed a fundamental failure to understand the requirements and standards of the regulatory system.
She adds: "It is vital that sole traders and others running firms demonstrate the necessary competence and capability to ensure their firm cannot be used for financial crime and that it is able to provide suitable advice and treat customers fairly. Those who do not demonstrate these qualities face being banned."
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress