FSA bans director from management for two years

Collins, the only director and approved person in his firm Thoroughgood Harrison and Davies, will be unable to hold senior positions in the financial services industry for at least two years.

The FSA reviewed a number of client files and discovered that inadequate affordability assessments were undertaken by the firm's advisers. One client was recommended a mortgage contract which exceeded his net income and others were recommended potentially unaffordable mortgage contracts which extended into their retirement.

Collins also breached an undertaking given to the FSA to prevent an unqualified mortgage adviser from giving unsupervised advice to customers.

His inadequate management and poor understanding of regulatory requirements led the FSA to conclude that he lacked the competence and capability to perform senior roles of significant influence at an authorised firm.

The firm has now been put in voluntary liquidation. Collins would have been fined £30,000 but evidence was supplied which demonstrated that imposing this would cause severe financial hardship and threaten Collins' solvency.

Margaret Cole, head of enforcement and financial crime, said that Collins failed to manage his firm adequately.

She added: "Senior management who do not demonstrate the necessary skills to ensure their firms are properly run, and their customers are protected, will face tough sanctions."