FSA fines and bans mortgage adviser pair

The Financial Services Authority (FSA) has taken action against three former directors of the collapsed Black and White Group for numerous failings around the sale of mortgages and payment protection insurance (PPI).

Christopher Ollerenshaw and Thomas Reeh, the chairman and chief executive of the mortgage advisory, challenged the FSA's decision in the Upper Tribunal, but the verdict fell in favour of the City watchdog.

A penalty of £100,000 for Ollerenshaw was agreed but reduced by £50,000 for financial hardship.  A fine of £75,000, reduced to £10,000, was agreed for Reeh.

In light of the pair's failings the FSA also asked for both individuals to be banned, but the tribunal chose to impose a prohibition only on Ollerenshaw in light of mitigating circumstances for Reeh.

In addition, Adrian Childs, the former chief operating officer of the collapsed firm, has been banned from holding a senior position in regulated financial services because he did not understand or take steps to understand how to perform his role.

Like his colleagues, Childs would also have been fined £50,000 but was declared bankrupt in 2009.