Brokers fined and banned in FSA crackdown

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The Independent Online

City regulator the Financial Services Authority (FSA) has continued its clean-up of the mortgage advice market.

Last week, for the first time, the FSA fined and banned two mortgage brokers. The first to feel the regulator's wrath was Sadia Nasir from Ilford-based House of Finance who was found to have submitted seven mortgage applications containing false information about her own employment and earnings, supported by falsified documents including payslips and financial statements.

Ms Nasir was also found to have obstructed the FSA probe and not to have informed the regulator of a County Court Judgment made against her in September 2005.

The actions of Ms Nasir were deemed so serious that an unprecedented fine of £129,000 was imposed and she was banned from offering mortgage advice.

Margaret Cole, head of enforcement at the FSA said: "Her actions were particularly serious and blatant, and she poses an immediate risk to lenders."

She added: "We have banned a number of brokers and others this year in connection with mortgage fraud, but the problem persists. We made a commitment last year to increase fines ... to act as a deterrent. And this case marks a step change in the way we are dealing with mortgage fraud."

Subsequently, the FSA moved to ban and fine Robin Knox, director at Darlington- based Mortgage and Property Services. Mr Knox received a £17,500 fine for advising people to take out unsuitable sub-prime mortgages when more mainstream deals were a available.

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