The FSA has banned a Durham-based director of a mortgage broker firm from senior positions in the financial services industry for at least two years.
Roger Collins, the only director and approved person at Thoroughgood Harrison and Davies, had his approval revoked after an FSA investigation found failings which put 300 customers at risk of receiving unsuitable advice.
Poor affordability assessments by the firm's advisers affected a number of clients, the FSA review found.
One client was recommended a mortgage contract exceeding his net income. Others were offered potentially unaffordable mortgage contracts which extended into their retirement.
Collins' inadequate management and poor understanding of regulatory requirements meant he was unfit to perform senior influential roles at any authorised firm.
He also breached an agreement with the FSA to stop an unqualified mortgage adviser giving unsupervised advice to customers.
The firm has now been put in voluntary liquidation and is no longer active in the market.
Collins would have been fined £30,000 for his failure to comply with Statement of Principle 7 of the Statements of Principle and Code of Conduct for Approved Persons (APER).
However, evidence put forward to the FSA suggested imposing such a fine would cause severe financial hardship and threaten Collins' solvency.
Margaret Cole, FSA head of enforcement and financial crime, says:"Collins failed to manage his firm adequately and he failed to convince the FSA that he was competent and capable of performing "significant influence" functions at an authorised firm.
"Senior management who do not demonstrate the necessary skills to ensure their firms are properly run, and their customers are protected, will face tough sanctions."
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