FSA withdraws approval of network head

2 September 2009 | By Natalie Thomas

Moorley can no longer perform the roles of chief executive and “apportionment and oversight of responsibilities” after the regulator found he lacked the necessary competence and capability.

The FSA would have imposed a financial penalty of £30,000 on Moorley but such a financial penalty would have caused him financial difficulty and threatened his solvency.

The regulator says Moorley failed to manage and control the expansion of Premier Network Group to an acceptable standard, the network is now in liquidation.

As a result of these failings some of the network’s 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 and submitted complete and accurate information to the FSA in its regulatory returns.

He also failed to take appropriate action when some of its ARs were removed from lenders’ panels.

Margaret Cole, director of enforcement at the FSA, says: “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 ARs.

“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.

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