The FSA took this action after receiving information from a lender that it had removed Mr Bali from its panel because of concerns about mortgage applications submitted to it by Mr Bali. Another lender also provided the FSA with assistance at a later stage in the case.
Key reasons for the FSA's action against Mr Bali include his:
failure to organise and control his business responsibly and effectively in order to comply with regulatory requirements;
inability to identify and take action against any unusual, suspicious or potentially fraudulent mortgage applications; and
failure on a number of occasions to deal with the FSA in an open and cooperative way.
The FSA concluded that he was not, and would never be, ready willing and organised to comply with the FSA’s Principles for Businesses.
Michael Lord, head of mortgages and credit unions in the small firms division of the FSA, said:
"It is essential that firms comply with our rules at all times and we will take the appropriate action when failures occur. We look at the way firms are organised and the systems and controls they have in place. We take these measures very seriously as they can help to prevent fraudulent mortgage applications. Firms must also ensure that customer files are correct and updated where necessary. They should be able to provide us with any files when requested to do so for supervisory purposes. In this case we found that Mr Bali was not, and never would be, ready, willing and organised to comply with our regulatory requirements. Therefore, we have taken this action to stop him working in the regulated financial services industry to help maintain confidence in the financial system and in support of the FSA's financial crime objective."
