FSA bans Essex-based introducer

The Financial Services Authority has made its first ever prohibition order against a mortgage introducer.

The regulator has banned Essex-based introducer Andrew Talai Kiplimo. Rather than a regulated mortgage broker, Kiplimo acted as conduit for business to mortgage brokers and lenders.

Although this technically means that Kiplimo is outside of its jurisdiction, it has made the prohibition order banning him from any regulated activity.

The FSA says this is a measure aimed at dealing with the problem of mortgage fraud.

With the help of lenders, the FSA has found Kiplimo submitted mortgage applications with inflated income statements, false employment details and fraudulent tax and accounts calculations.

After being informed by a lender that discovered said fraud that it would no longer accept applications from him he continued to apply for mortgages.

The FSA says Kiplimo also failed to co-operate with the FSA’s investigation into these matters.

Jonathan Phelan, head of retail enforcement at the FSA, says: “Kiplimo’s actions and his failure to co-operate with the FSA demonstrate a lack of honesty and integrity, and show that he is not a fit and proper person.

“Anyone who is approached by him about regulated business is strongly advised to have no further dealings with him.

“The severity of the risk he posed to lenders and to confidence in the financial markets makes it necessary for the FSA to exercise its power to make a prohibition order.

“We will not hesitate to take similar action against any individuals, and report them to other authorities as appropriate, who are found to be knowingly involved in the submission of false mortgage applications.”