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Fsa Fines Director For Unacceptable Risk

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http://www.mortgageintroducer.com/mortgage...ptable_risk.htm

FSA fines director for unacceptable risk

25 August, 2009

The Financial Services Authority (FSA) has fined Christopher Davies, director of Newquay Investment Services (2004) Limited, an IFA based in Cornwall, £17,500 for not disclosing to the FSA information about an adviser he'd employed.

This led to an unacceptable risk of customers being recommended unsuitable mortgages.

After Newquay had applied to the FSA last year for the adviser to be confirmed as an approved person, Davies became aware that the adviser’s previous employer had suspended the adviser because of concerns about his business methods and ethics including apparently inflating income figures in mortgage applications. Davies raised these concerns with the adviser and concluded that the adviser had lied to him about why he had left his previous employment. Davies then failed to disclose this significantly adverse information to the FSA.

Despite being aware of the concerns of the adviser’s previous employer and of the adviser misleading him on these matters Davies failed to:

exercise appropriate control over mortgage applications submitted by the adviser;

consider whether it was appropriate, in light of indications that the adviser was not fit and proper, to allow him to continue giving advice on life and other products; and

understand the risks associated with ‘fast track’ mortgages and as a result allowed the adviser to submit mortgages of this type to lenders.

Margaret Cole, FSA director of enforcement at the FSA, said: "Davies’ failures exposed Newquay’s customers to an unacceptable risk of being recommended mortgages which may not have been suitable for them and exposed lenders to the risk of offering mortgages on the basis of false or misleading information passed through Newquay.

"When Davies became aware of the later adverse information relating to the adviser he should have immediately informed the FSA. The fine indicates that the FSA takes a serious view of such failings and serves as a deterrent to directors of regulated firms from acting in a similar way."

Davies agreed to settle at an early stage of the FSA's investigation and therefore qualified for a 30% discount under the FSA’s executive settlement procedures. Had Davies not settled at this stage the FSA would have imposed a financial penalty of £25,000.

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http://www.mortgageintroducer.com/mortgage...ptable_risk.htm

FSA fines director for unacceptable risk

25 August, 2009

The Financial Services Authority (FSA) has fined Christopher Davies, director of Newquay Investment Services (2004) Limited, an IFA based in Cornwall, £17,500 for not disclosing to the FSA information about an adviser he'd employed.

This led to an unacceptable risk of customers being recommended unsuitable mortgages.

After Newquay had applied to the FSA last year for the adviser to be confirmed as an approved person, Davies became aware that the adviser’s previous employer had suspended the adviser because of concerns about his business methods and ethics including apparently inflating income figures in mortgage applications. Davies raised these concerns with the adviser and concluded that the adviser had lied to him about why he had left his previous employment. Davies then failed to disclose this significantly adverse information to the FSA.

Despite being aware of the concerns of the adviser’s previous employer and of the adviser misleading him on these matters Davies failed to:

exercise appropriate control over mortgage applications submitted by the adviser;

consider whether it was appropriate, in light of indications that the adviser was not fit and proper, to allow him to continue giving advice on life and other products; and

understand the risks associated with ‘fast track’ mortgages and as a result allowed the adviser to submit mortgages of this type to lenders.

Margaret Cole, FSA director of enforcement at the FSA, said: "Davies’ failures exposed Newquay’s customers to an unacceptable risk of being recommended mortgages which may not have been suitable for them and exposed lenders to the risk of offering mortgages on the basis of false or misleading information passed through Newquay.

"When Davies became aware of the later adverse information relating to the adviser he should have immediately informed the FSA. The fine indicates that the FSA takes a serious view of such failings and serves as a deterrent to directors of regulated firms from acting in a similar way."

Davies agreed to settle at an early stage of the FSA's investigation and therefore qualified for a 30% discount under the FSA’s executive settlement procedures. Had Davies not settled at this stage the FSA would have imposed a financial penalty of £25,000.

Small fry.

Hows about the FSA going after some 'big fish' ??

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Small fry.

Hows about the FSA going after some 'big fish' ??

Not a chance. They would have to go after themselves. This is a bit like a dog chasing it's own tail and chewing on it.

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So it wasn't an unacceptable risk HBOS employing a supermarket salesman as CEO?

Curious double standard.

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http://www.mortgageintroducer.com/mortgage...ptable_risk.htm

FSA fines director for unacceptable risk

25 August, 2009

The Financial Services Authority (FSA) has fined Christopher Davies, director of Newquay Investment Services (2004) Limited, an IFA based in Cornwall, £17,500 for not disclosing to the FSA information about an adviser he'd employed.

Davies agreed to settle at an early stage of the FSA's investigation and therefore qualified for a 30% discount under the FSA’s executive settlement procedures. Had Davies not settled at this stage the FSA would have imposed a financial penalty of £25,000.

Sort of 'off plan' guilty plea....

Nice discount!!!

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With him gone, how will they shift these then:

http://www.rightmove.co.uk/property-for-sa...pertyType=flats

Average local salary is about £18k

BAHAHA,

Cornwall is very nice, but isn't Newquay a bit like a 18-30s location? 1.5mil for a flat... LOL

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Small fry.

Hows about the FSA going after some 'big fish' ??

Don't be daft. Hector Sants might want to go back into the industry, when his stint at the FSA finishes!

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BAHAHA,

Cornwall is very nice, but isn't Newquay a bit like a 18-30s location? 1.5mil for a flat... LOL

600 unsold flats in Newquay last I heard. This is known as over-supply.

I have seen one for sale for £38k (posted on here) and one going to auction with a guide of £25k.

£1.5m would buy a lot of flats.

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600 unsold flats in Newquay last I heard. This is known as over-supply.

I have seen one for sale for £38k (posted on here) and one going to auction with a guide of £25k.

£1.5m would buy a lot of flats.

Just checked on Rightmove and there are 429 flats for sale in Newquay.

In total there are 761 properties for sale - ouch !

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Just checked on Rightmove and there are 429 flats for sale in Newquay.

In total there are 761 properties for sale - ouch !

Oh well -- Take out 761 LIAR LOANS! - Then you too could be a PWOBEERDEE MILLIONAIRE!! :P:P

Edited by eric pebble

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