Broker banned for inadequate controls

Nia Williams

September 15, 2009

As a result of these failings the firm was at risk of being used for financial crime, particularly mortgage fraud, and customers of the firm were exposed to the risk of receiving unsuitable advice on mortgage contracts.

Kirk also failed to take remedial actions required by the FSA to put matters right at the firm.

Margaret Cole, FSA director of enforcement, said: “Kirk lacked competence and capability and showed a fundamental failure to understand the requirements and standards of the regulatory system. Even when FSA staff visited the firm in 2007 and 2008 and set remedial action, Kirk failed to implement them.

“It is vital that sole traders and others running firms demonstrate the necessary competence and capability to ensure their firm cannot be used for financial crime and that it is able to provide suitable advice and treat customers fairly. Those who do not demonstrate these qualities face being banned.”

Grosvenor Mortgage Advice Centre’s permission has also been cancelled.

The 2008 visit to the firm was conducted by an FSA team focussing on treating customers fairly as part of the FSA’s enhanced supervisory strategy for small firms. Firms who are failing to treat their customers fairly will continue to be identified through the FSA’s small firms assessment programme and action, including enforcement where appropriate, will be taken.

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