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Watchdog bans mortgage brokers

Published on 30 Apr 2010 under category: legal

Three mortgage brokers have been banned by the finance industry watchdog for exposing their customers to the risk of fraud and poor advice.

Noel Smith, James Phillips and Ashok Sharma will no longer be able to work in the industry following three investigations into their respective firms by the Financial Services Authority (FSA).

Phillips of Lancaster House Mortgages is accused of attempting to "undermine confidence in the mortgage market" by submitting nine fraudulent mortgage applications.

Smith of Andrew Copeland Mortgages was found to have exposed over 200 customers to risk by giving poor advice and failing to manage compliance to existing regulations.

Sharma of Ash Commercials failed to uncover two obviously fraudulent applications to his firm and was found guilty of putting customers at risk through giving advice when unqualified to do so.

To date, 84 mortgage brokers have been banned by the FSA.

Some of the offences were uncovered by the Information From Lenders initiative.

The scheme encourages lenders to report suspicious activity to the watchdog.

According to the FSA, complaints from lenders have resulted in around 700 "alerts", as well as penalties for those found guilty.

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