FSA bans broker for high pressure sales techniques
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The Financial Services Authority has banned Aaron Nickols, trading as Warwick Finance (Warwick) for not being fit and proper to run a mortgage and insurance business.
The FSA’s investigation found that Nickols failed to ensure his customers were treated fairly and failed to prevent his staff using high pressure sales techniques.
The high pressure tactics included making unsolicited phone calls to the public, falsely claiming to represent well known high street financial service providers and questioning the stability of customers` existing policy providers in order to encourage the purchase of a new policy through Warwick.
Staff also obtained direct debit details from potential customers and set up insurance policies in their name without permission.
Nickols also failed to have appropriate systems and controls in place, meaning that staff were not monitored appropriately, customer’s specific needs were often not taken into account and training for staff was inadequate.
Furthermore, during the investigation Nickols failed to deal honestly with the FSA by making incorrect statements to the FSA and not making the improvements he had promised to make to improve the firm’s treatment of customers.
Tom Spender, FSA’s head of retail enforcement, says: “By failing to treat his customers fairly, lacking the essential systems and controls to meet the FSA’s minimum regulatory requirements, and having an inappropriate attitude to the remedial action we outlined, Nickols poses a genuine risk to his customers and the financial system.
“High pressure sales techniques and subterfuge have no place in a market that relies on honesty and integrity.”
Warwick, based in Hinkley, Leicestershire, operated with 10 nationwide branches selling mortgage and general insurance products on a purportedly non-advised basis.
As a sole trader, it was Nickols’ responsibility to ensure that Warwick had adequate management and control arrangements. He was also responsible for ensuring that Warwick complied with the regulatory requirements and treated its customers fairly.
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Readers' comments (12)
Kevin Banting | 7 Dec 2009 11:56 am
The FSA are right to outlaw anyone who fails to treat customers fairly and uses high presure sales techniques.
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Anonymous | 7 Dec 2009 11:56 am
I worked for them for 10 days before resigning in disgust at their tactics and what the FSA say is all true - no training high pressure sales - claiming to be Halifax.
A cowboy outfit that should definitely not be around for Christmas!
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Anonymous | 7 Dec 2009 12:07 pm
i reported them to the FSA several years ago as they were coldcalling my clients and on some occasions even claimed to be calling from my firm!
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Tom Cleary | 7 Dec 2009 12:35 pm
Good riddance to bad rubbish...
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Anonymous | 7 Dec 2009 12:36 pm
I agree, the FSA are right to outlaw anyone who fails to treat customers fairly and uses high presure sales techniques
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Anonymous | 7 Dec 2009 1:54 pm
setting up insurance polices without permission and I assume getting commission,thats fraud? wheres the police?
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Anonymous | 7 Dec 2009 2:00 pm
You would be surprised at how many firms actually do 'cold call' customers with the most pathetic of reasons and then launch into a full sales pitch!!!!My elderly mother was called recently by somebody misrepresenting themselves as a provider, when she asked the person's name he lied (we since found out his true identity and yes it is an authorised company)!!!!so much for treating customers fairly.
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Anonymous | 7 Dec 2009 2:38 pm
How can a sole trader be allowed to have 10 branch offices in the first place?
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M Platt | 7 Dec 2009 2:58 pm
Good riddance to another bad apple.
This seems unbelievable to me that this can apparently go on for so long unchallenged.
The problem is that this is how we honest brokers are being perceived by the public and whilst it is good news to see such parasites as this firm struck off I wonder how many decent, honest, hard working brokers have met the same end due to the way we are being portrayed in the media and by lenders?
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Anonymous | 7 Dec 2009 9:46 pm
Yawn - yes he's a "bad guy" but he didn't pose as much of threat to the financial system as RBS directors do, and having ruined the country they now expect bonuses of millions. Whats the FSA done about that?
I'm so sick of the FSA shouting about it's success when it's failings have dwarfed them many many times over. Shut up FSA and actually do something useful, preferably cease to be.
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