Firms offering mortgage advice could face public censure and have fines imposed on them should they fail to improve their processes, the Financial Services Authority has warned.
The warning follows the regulators wide-ranging review of over 250 firms advice processes, which has prompted the FSA to refer several of the firms assessed to enforcement after they were found to have significant failings.
This means these firms could face a range of punitive measures, should they now fail to raise their standards on providing customers with suitable advice on mortgages.
These measures include public censure of directors, fines, and even the cancellation to be FSA registered.
The regulator would not disclose which firms it had referred to enforcement following its assessment.
They assessment involved banks, building societies, large mortgage networks, small mortgage networks and advisers.
The FSA says it is working with the firms, which it deemed to have significant failings, to try and resolve the situation.
The warning from the regulator follows its recent banning of a broker, as reported in Mortgage Strategy, who failed to disclose a previous conviction to obtain property by deception.