CMC is first firm to be fined for cold calling

Capital Mortgage Connections last week became the first firm to be fined for cold calling by the Financial Services Authority, after the regulator found 85% of its business was generated in this way.

The £17,500 fine also includes CMC’s failure to give customers appropriate pricing information on accident, sickness and unemployment insurance polices.

However, it has been revealed two of CMC’s directors, Frank Cowe and Anthony Marchiare, are also directors of the Mortgage Advisory Bureau, which is an appointed representative under Home of Choice. However, HoC has no association with the fined firm.

Steve Duffy, compliance director at HoC, says the action against CMC was in respect of breaches that occurred between April 4 and October 17 2005. The FSA discovered the breaches during a visit in November 2005, before MAB was appointed by HoC on November 25 2005.

He adds: “HoC does not allow cold calling for mortgages and this position is made clear to ARs when they join us. To the best of our knowledge these problems occurred at CMC before MAB joined HoC.

“We are not aware of any ongoing investigations suggesting that these issues have also occurred at MAB.”