FSA has published further details on its decision to fine the director of a failed mortgage brokerage.
A former director of mortgage broker Black and White Group (B&W) was fined by the regulator for pressurising advisers to sell products provided by lender Money Partners.
A document released by the Financial Services Authority (FSA) has revealed that between September 2006 and November 2007, Thomas Reeh put pressure on the firm’s advisers to sell single premium payment protection insurance, without considering whether it was suitable for individual customers.
The FSA announced that Reeh had been fined £10,000 for misconduct in December last year but only confirmed the details of the lender involved this week.
Money Partners, which was based in Uxbridge, Middlesex, is no longer trading.
The tribunal found that he failed to take steps to ensure that B&W had adequate compliance systems in place.
Reeh is also claimed to have “set a tone from the top” that focused on profit, cash flow and an increase in sales at the expense of the “fair treatment” of its customers.
In a statement, the FSA said: “Reeh failed in his duty promptly to provide the FSA with accurate information regarding Black and White’s capital adequacy position and, on one occasion, misled the FSA about these matters.”