News of the investigation came from brokers who said they were contacted by the FSA who referred to the front cover feature ‘Guarding the perimeter’ in the last issue of Mortgage Introducer (9 April 2005).
Thomas Reeh, chief executive officer of The Black & White Group, said he had been contacted by the regulator and asked to keep a list of all unregulated firms who approached his company and asked to put cases through using its FSA number.
“We get at least a couple of guys a week contacting us to see if they can put their business through us,” he said. “We normally politely tell them to go away but the FSA has now asked us to keep a record of them and pass their names on.”
Rob Clifford, managing director of Mortgageforce, called on all regulated brokers to blow the whistle on those who were still operating illegally.
“The FSA knows how critical it is that it’s seen to police the perimeter,” he said.
Bill Warren, director of The Complete Network, said it was encouraging to hear that the FSA was taking action. He said: “I am impressed that the regulator uses Mortgage Introducer to keep abreast of the issues that concern the industry.”
FSA spokesman David Whitely said: “We are currently looking at firms who initially applied for a registration pack but have then dropped off our radar.
“We expect to be able to report on our progress in the next two to three weeks.”
