Steven Leslie Davis was disciplined by the regulator for failing to ensure there were adequate systems and resources in place for processing, accounting for, and monitoring customers’ applications in respect of payments for accident sickness and unemployment (ASU) insurance policies, while in his position as chief executive and the director responsible for accounts and finance functions at Essential Mortgages Limited.
Commenting on the action, Jonathan Phelan, head of retail enforcement at the FSA, said: “Senior managers of authorised firms should take note that the FSA will hold them to account where they fail to act appropriately. The failures evident in the firm could have been avoided if the director had taken reasonable care to control the accounting functions of the business.”
Philip Ryley, head of financial services regulation at TLT, said the FSA was focusing its attention on its statement of principle, highlighting its move to a principles-based approach. He said: “The FSA took this enforcement action against a senior manager of a company that had ceased trading and already entered into a creditors’ voluntary arrangement. The FSA has the power to take disciplinary action against individuals long after they have ceased to be approved persons.
“What is also of interest is the fact that this disciplinary action was taken against a senior manager for failure to comply with statements of principle and this emphasises the FSA’s determination to move towards being a principles-based regulator.
He added: “Chief executives of all broker firms, who will also have the apportionment and oversight function, or part of it, need to fully appreciate that if something seriously goes wrong within their business and within their controlled functions there is a real risk that enforcement action could be taken against them.”
