FSA fines Doncaster broker £34,500
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Between October 2005 and March 2008 Orchid Financial failed to obtain customer information regarding the suitability of its advice, and failed to record why recommended mortgage contracts were suitable.
The firm was found to have inadequate measures to supervise and monitor its advisers, and also failed to document how its advisers were trained.
Jonathan Phelan, head of retail enforcement at the FSA, says: “Orchid’s failings meant they could not demonstrate that their mortgage advice and sales were suitable. This fine sends out a clear message to brokers that their advice must be of good quality – otherwise there is a likelihood that they will not be treating customers fairly.”
The FSA says Orchid has co-operated fully with its investigation and implemented changes after the regulator visited the firm in March 2008. The FSA has not found any evidence of consumer detriment, and Orchid is completing a file review and customer contact exercise.
Orchid qualified for a 30% reduction in the penalty. The FSA would have imposed a financial penalty of £49,285 were it not for this discount.
