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FSA fines North Wales broker £100,000

FSA fines North Wales broker £100,000

The Financial Services Authority has banned North Wales mortgage broker Stephen Jones and fined him £100,000 after finding he had exposed about 1,500 customers to the risk of receiving unsuitable advice.

The FSA said that Jones, senior partner of Jones & Poole Independent Mortgage Specialists, failed to make sure his business met regulatory requirements and did not treat customers fairly when recommending mortgage contracts. Junior partner Simon Poole was also fined £7,000 for exposing 750 clients to the risk of purchasing unsuitable mortgages.

‘Mr Jones’ fraudulent mortgage application and his dishonesty in attempting to cover up regulatory failings were completely unacceptable warranting a ban and a large financial penalty,’ said FSA head of retail enforcement Jonathan Phelan (pictured).

‘Mr Poole’s failings were of a lesser order and although they were deserving of a fine he has not been banned.’

Jones was also found to have arranged for customers to sign and back date retrospective fact find documents for completed sales before a visit from the FSA. He also provided a letter with false income information to support his own mortgage application.

Poole meanwhile failed to record whether he had accessed clients’ ability to afford a mortgage, and failed to implement changes recommended by a compliance consultant.

According to the FSA the partnership operated effectively as two separate businesses with the two partners sharing very little contact.

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