FSA bans mortgage brokers
Thursday, 6th November 2008

The Financial Services Authority (FSA) has banned two men from the mortgage business after it was found that they were providing inadequate mortgage advice to customers.

Edward Allen and Ronald Allen, who traded under the company Homeplan, were criticised by the governing body for not collecting proper information from customers and not adequately monitoring the sales of mortgage contracts.

Head of retail enforcement at the FSA Jonathan Phelan said both directors lacked competence in the sector and warranted a fine of £15,000 each.

Mr Phelan added the failings were particularly serious as "the FSA first identified problems with the firm's systems and controls during a visit in 2006 and no steps were taken to remedy the situation by the time of the FSA's visit in 2008".

Last month, the FSA revealed in its latest mortgage lending data that the total value of outstanding loans is £1,178 billion, marking an increase of 7.5 per cent on last year's figures.