29 September 2010
FSA investigations lead to legal action against two parties
Action taken by the Financial Services Authority (FSA) has resulted in two parties being disciplined for breaching rules imposed by the regulatory body.
FSA investigations into the working practices of David Roberts - sole director of Shrewsbury-based firm A-Z Mortgages - and Hygeia Mortgages and Finance have led to both organisations being found to contravene various aspects of the regulations upon which their licenses were awarded.
For example, Mr Roberts has been fined £14,000 for his failure to properly implement an effective system to ensure that his firm was not allowing applicants for mortgages to provide misleading details as well as not keeping adequate records of all customer transactions.
Meanwhile, Hygeia has had its license to undertake any regulated activity in the financial sector revoked after scrutiny by the FSA found that it had not satisfied threshold conditions and also failed to provide the body with full and accurate information.
Tom Spender, head of retail enforcement at the FSA, commented: "These actions demonstrate what will happen if firms are not open and cooperative with the FSA."
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Posted by Cheryl Bennett