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Tribunal upholds FCA prohibition decision

Ryan Fowler

May 20, 2014

Batra was banned for a “lack of integrity in relation to the submission of mortgage applications”.

The decision was issued by the Tribunal on 13 May 2014 after a trial in November 2013 and after consideration of written submissions made in February and March 2014.

In 2007, Mortgage 10 Limited (M10) – a mortgage and general insurance broker firm at which Batra was the director, controller and approved person – submitted a number of mortgage applications on behalf of Batra in order to seek funding for the purchase of the leasehold of two properties which consisted of 78 studio flats. Each of the mortgage applications bore Batra’s signature.

The Tribunal agreed with the FCA’s finding that Batra lacked integrity as evidenced by his submission of a number of mortgage applications containing inaccurate information to two mortgage lenders.

The Tribunal found that, in relation to those applications, Batra: was reckless as to the truth of some of the statements he made; failed to be open and cooperative with the lenders on another point; and that he never intended to comply with one of the mortgage offer conditions or, at the very least, was unconcerned as to whether he did so or not.

The Tribunal also found that Batra was not open and co-operative in his dealings with the FCA (in particular it found that Batra either knowingly or recklessly gave the FCA incorrect information when being interviewed).

The Tribunal did not find that, on the evidence, the FCA had established that Batra had been dishonest or deliberately sought to mislead the lenders.

Batra had referred the decision made by the FCA, issued to him in a Decision Notice dated 3 November 2010, to withdraw his approvals to perform controlled functions in relation to M10 (which has since dissolved) and to prohibit him from carrying out any function in relation to any regulated activity carried on by any authorised person, exempt person or exempt professional firm.

It remains open for Batra to appeal the Tribunal’s decision.


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