£31,500 fine for Dundee mortgage broker
A Dundee mortgage broker whose reckless business practices allowed "false and misleading" mortgage applications to be made to lenders has been fined by the Financial Services Authority (FSA).
Ronald Alan Winton, of Mortgage Healthcare Limited in Broughty Ferry, was fined £31,500, and will not be able to hold a senior position in a financial services firm for two years.
As sole director and approved person at his mortgage and general insurance firm, Winton had ultimate responsibility for managing and monitoring his firm's business.
However, he ran a separate business from different premises, and delegated day-to-day responsibility of Mortgage Healthcare Limited to two non-approved advisers.
A previous FSA visit to the firm identified concerns at the level of interest-only mortgages and self-certification of income in files. During a further visit, the FSA found no evidence that Winton had taken any action to rectify the problems.
When interviewed by the FSA, Winton expressed concern that 65% of the firm's business was interest-only mortgages, but stated he had no control over this. He also admitted that advisers were still failing to check the feasibility of customers' repayment strategies for interest-only sales.
The FSA identified 14 out of 19 cases in which it appeared that customers submitted mortgage applications to lenders which contained false or misleading information about their incomes.
Furthermore, the FSA found problems with the suitability of advice given to customers and inadequate complaints handling procedures.
Mortgage Healthcare Limited has had its permissions removed and ceased trading.
His potential fine of £45,000 was discounted by 30% because he settled at an early stage in the investigation.
Margaret Cole, director of enforcement and financial crime at the FSA, said Winton was "not of sufficient calibre" to run his firm to the standards expected by the FSA.
Mr Winton, whose business was based in Hamilton Street, could not be contacted for comment.
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