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FSA clamps down on &#39rogue&#39 broker firms

The Financial Services Authority has acted to stop three firms of financial advisers from carrying on any activities regulated by the FSA.

The firms – County Down-based Gallagher & Company, Gwent-based Allan Austin Investment Services (AAIS), and Bradford-based Midgley&#39s Insurance Mortgage & Pensions (MIMP) – have all been stripped of FSA authorisation after the financial regulator concluded that they were failing to satisfy the minimum industry standards.

The action taken by the FSA constituted the prevention of each firm from advising on and arranging deals in investments for consumers.

The allegations were, specifically, that Gallagher and AAIS failed to maintain professional indemnity insurance; AAIS and MIMP failed to comply with PIA Ombudsman Awards and Gallagher failed to provide information requested by the FSA, breaking the regulator&#39s &#39threshold conditions&#39.

An FSA spokesman told Mortgage Strategy: “The risk of loss or other adverse effect on consumers due to these failings caused the FSA to have very serious concerns about the three firms, and was sufficient that the FSA considered it appropriate to use its power to prevent the firms from conducting regulated activities, with immediate effect.”


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