The regulator banned Northern Ireland-based broker Noel Heaney, trading as Heaney Finance, for poor management and for failing to treat his customers fairly.
Heaney entrusted the running of his business to an inexperienced employee, did not ensure that his advisers received adequate training and exposed his business to the risk of being used by third parties to commit mortgage fraud.
The permission of Essex-based mortgage broker, Antoinette Davis, trading as Ability Mortgage Solutions, was also cancelled, because she opened up the possibility that customers could be sold inappropriate mortgages.
She failed to ensure sufficient information was obtained from customers before advising on products and sent generic letters to customers over mortgage recommendations.
The FSA has now banned more than 70 mortgage brokers in the last three years, and Margaret Cole, director of enforcement and financial crime at the FSA, said the latest bans highlighted the effectiveness of the regulator’s tough stance on enforcement.
She added: “To continue helping consumers, we must continue to deal robustly with the firms and individuals who do not engage with us in order to ensure fair treatment of their customers.”
Alan Lakey, principal at Highclere Financial Services, said the regulator was sending out a clear message to brokers that they must be more responsible for their businesses.
He added: “As self-certification is on the way out and more cases are being scrutinised by lenders, fraud is becoming less common. The FSA has decided to broaden its enforcement procedures to include brokers who open up the possibility of fraud occurring on their watch through poor management.”
Simon Webster, managing director of Facts & Figures, added: “Mortgage advisers have earned a bad reputation because some have acted inappropriately and unprofessionally. Through these bans, the FSA is trying to ensure the profession returns to a respected position.”
