FSA investigations found that PB Roberts Ltd could not demonstrate why it had recommended certain mortgages or if customers had been offered the cheapest deal – even though many of its customers were in the sub prime or self-certified market.
In addition, despite previous warnings from the FSA, the firm published three mortgage advertisements in local media which did not state a precise fee or display the APR figure and risk warnings prominently. One of the promotions generated sales worth £11,802.
Margaret Cole, FSA director of enforcement, said: "Firms need to know that it is unacceptable for them to publish unclear promotional material or put their customers at risk of receiving unsuitable advice. Mortgages are significant commitments for consumers and they need to be confident that they are being advised to choose the right product.
"PB Roberts Ltd placed its customers at risk and this is particularly serious when some of them were vulnerable consumers who had adverse credit histories or were trying to consolidate debts."
In determining the appropriate disciplinary measure, the FSA took into account a number of mitigating factors. PB Roberts Ltd was open and co-operative with the FSA and stopped publishing financial promotions in September 2006. The firm has agreed to increase compliance monitoring over its mortgage sales process for the next 12 months and any promotional material will be signed off by an individual with appropriate expertise.
All of the breaches took place between 1 June 2005 and 31 October 2006.
