But for Moorley's financial circumstances, the FSA would also have imposed a penalty of £30,000 on him.
Moorley failed to manage and control an expanding network of mortgage brokers to acceptable standards. As a result of these failings some of the network's Appointed Representatives (ARs) took advantage of the weak systems and controls by submitting fraudulent mortgage applications and recommending unsuitable mortgage contracts.
Moorley also failed to ensure that the network:
* handled complaints in compliance with regulatory requirements;
* submitted complete and accurate information to the FSA in its regulatory returns; and
* took appropriate action when some of its ARs were removed from lenders' panels.
Margaret Cole, FSA director of enforcement, said: "Senior management of authorised networks are responsible for the quality and integrity of financial advice conducted in their names. This case highlights the risks posed by limited control and oversight of Appointed Representatives. Moorley's conduct was particularly serious because it exposed customers to the risk of receiving unsuitable advice and allowed the network to be used by some of its Appointed Representatives to submit fraudulent mortgage applications."
The FSA has taken into account that Moorley has been open and cooperative with the FSA's investigation, that he accepted that there were management and control failures, and that the network ceased conducting new business to mitigate any ongoing risk to customers. The FSA would also have imposed a financial penalty of £30,000 on Moorley but for evidence that imposing such a financial penalty would have caused him financial difficulty and threatened his solvency.
