With the banning of at least four advisers over recent weeks and some large fines it takes the total to about 20 enforcement actions since the start of the year. This includes enforcement action on at least four firms for poor sales procedures and a hefty £900,000 fine for Thinc Group for problems with its sub-prime documentation.
Despite repeated warnings from the FSA, advisers are still falling foul of their record keeping and further enforcement is surely on the cards as the noose tightens on the mortgage miscreants.
Julie Alderson, director, MS2M commented: “Given the FSA’s stance, it’s a great opportunity for responsible advisers to go back to basics in terms of the management of their firms and to revisit their core practices. The risks are too high to ignore putting fundamental systems and processes in place. Some key deficiencies have come to light over recent months that indicate a basic lack of business awareness and good practice by some. I’m not talking about vast infrastructure but the day-to-day running of the businesses.”
