 The Financial Services Authority’s crackdown on unsuitable mortgage advice rolls on with a fine of almost £100,000 for two firms.
The financial watchdog fined two directors at Abbey Mortgages Limited £30,000 each for putting vulnerable customers at risk and leaving the door open to fraud. The FSA said a sweep of self certified mortgages at the Bexleyheath-based firm revealed directors William John Evans and Gary Howes were not checking the affordability or suitability of mortgages.
‘Obtaining and clearly recording the right information from customers is not just about process but is an important step in preventing financial crime and giving customers the right advice and treating them fairly,’ said Georgina Philippou, FSA head of retail enforcement.
The firm would have been fined but it could not afford to pay the penalty, it has now agreed to stop advising on self certified mortgages. The FSA would have fined each director £42,800 had they not agreed to settle at a early stage.
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 The Compliance Alliance, a dedicated compliance support division within Home Buyer Systems, is offering a new Treating Customers Fairly (TCF) review service to enable firms to assess how far they have progressed with the guidelines.
The firm said the service can be tailored to the specific requirements of any size of mortgage firm, irrespective of its progress to date, and the review can be conducted remotely or in person at the firm’s offices.
Documentation and processes are assessed and full feedback is given to enable the firm to meet its TCF obligations ahead of the December deadline.
Richard Angliss, managing director of Home Buyer Systems commented “As the recent run of FSA enforcements against mortgage firms has reminded us, regulatory activity carries on despite the more headline-making events such as bank failures and the credit crunch.
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