The FSA has banned Welsh broker Talking Mortgage Solutions (TMS) for not maintaining enough capital.
The Bridgend-based firm cannot carry on regulated activities any further because it failed to maintain capital resources equal to or in excess of the FSA's relevant capital resources requirement.
Advice was provided by the firm, which has been running for 15 years, on mortgages, personal and household insurance, protection products and secured loans.
A warning notice was sent by the FSA on 8 July and this was followed by a decision notice on 12 August which cancelled the permission granted to the firm under Part IV of the Financial Services and Markets Act 2000 (the Act). The FSA adds it intends to publish more information about the matter when appropriate.
Abi Jones, spokesperson for the FSA, says: "We have taken this action and it is a reminder to other firms that they should hold an appropriate amount of capital to be able to run their businesses effectively."
Talking Mortgages Solutions was unavailable for comment.
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