The Financial Services Authority (FSA) has cancelled Hygeia Mortgages and Finance Ltd.’s permission to undertake regulated activities and has fined David Roberts, sole director of A-Z Mortgages Ltd., in the amount of ₤14,000 for failing to be open and cooperative with the agency in their security dealings.
The FSA’s Small Firms and Contact Division found A-Z to have failed to put adequate systems and controls in place to identify mortgage applications containing false or misleading information, to keep adequate records to explain changes in customers’ circumstances and to adequately monitor the activities of an adviser putting business through it between the period 28 November 2006 and 31 August 2009. It appears that Roberts was warned of the same failings in 2006 but the same were again identified in 2009. He put his assessments on what he wanted to achieve and not on what really happened in practice, said FSA.
On the other hand, FSA found Hygeia to have inadequate resources for the regulated activities that it had permission to undertake. Hygeia also refused supervisory visits of FSA staff. Hence, the agency concluded that it failed to ensure that its affairs were conducted soundly, prudently and in compliance with the proper standards.
Roberts cooperated with the investigation, settled at an early stage, and so he was given a 30% discount of his financial penalty of ₤20,000 under FSA’s settlement discount scheme.