FCA bans Glasgow pair for misleading lenders

Mortgage advisers banned by regulator

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The Financial Conduct Authority (FCA) has banned two former directors of Glasgow firm Which Mortgage for submitting mortgage applications containing false and misleading information to lenders.

Douglas Jones and his son Derek Jones were both directors of the Scottish firm and the regulator said that they ‘acted without due skill and care' by failing to ensure that Which Mortgage had appropriate controls in place.

These controls were needed to verify information submitted by clients during the mortgage application process. This led to the firm being used by its clients to facilitate financial crime through the submission of false payslips to high street lenders.

Derek Jones has been banned from performing any role of significant influence and would have received a financial penalty for his misconduct but his serious financial hardship.

The FCA also banned Douglas Jones, who it said had acted dishonestly by altering certain historic client files after concerns had been raised by a lender in an attempt to mislead the regulator.

He has received a full ban and a financial penalty of £19,000, reduced to £13,300 after a discount for early settlement discount.

Bill Sillett, acting head of department for retail enforcement, said: "This is another example of a case involving the submission of false and misleading information for mortgages to lenders to try and obtain mortgages fraudulently.

"Mortgage fraud poses a serious threat to the FCA's integrity objective of protecting and enhancing the integrity of the financial system. This includes ensuring that that a firm is not being used for a purpose connected with financial crime."

The FCA added that Which Mortgage is now under the management of new directors, who were not involved in the misconduct.

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