Derry-based mortgage broker, John Paul Keay, trading as Jack Keay Mortgage Services, has been banned by the FSA for not being competent or capable to perform any functions related to regulated activities, including giving advice.
The FSA has also cancelled the business’ permission and so Keay is no longer FSA-authorised.
The regulator says that despite running a very small business, Keay failed to maintain adequate control over it, which made the business a target for mortgage fraudsters.
The FSA found that Keay did not have in place adequate systems and controls and oversight arrangements for his advice and that of an appointed representative, with the consequence that his business was used for the submission of mortgage applications containing false information and supported by falsified pay slips, bank statements and employer references.
Even after a lender had identified shortcomings and stopped doing business with Keay, and after the FSA had explained to him the nature of the fraud, he failed to demonstrate that he had made appropriate changes to mitigate any future risk.
Jonathan Phelan, head of retail enforcement at the FSA, says: “Keay’s business was used to commit mortgage fraud. We identified many individual failings in what is a very small mortgage broker business.
“When concerns about mortgage fraud were drawn to his attention by a lender he delegated the task of following this up to his appointed representative and never thought to check on the outcome or make changes to his systems. After the FSA showed him examples of types of falsified documents submitted to lenders through his business, he still failed to demonstrate that he understood the risks.
“We do not and will not allow people who lack a basic level of competence and capability to perform controlled functions at authorised firms, especially where they are effectively facilitating financial crime.”