FCA bans uninsured mortgage advisor
The Financial Conduct Authority (FCA) has fined and banned an Essex-based sole trader, Christopher John Riches, for arranging mortgages after his regulatory permission had been removed, and while he did not have professional indemnity insurance, and for giving false information to the regulator about his insurance position.
Mr Riches, who operated out of Hornchurch, has been fined £63,000 and prohibited from working in regulated financial services.
In December 2009, the FCA discovered that Riches did not have professional indemnity insurance cover. The watchdog claimed that on 12 January 2010, after discussion Mr Riches, he agreeded to stop performing regulated activities and had his regulatory permission removed.
However, the regulator found that between May 2010 and August 2011, Mr Riches arranged at least 97 mortgage transactions earning approximately £40,000 in fees.
Lack of honesty
Bill Sillett, the FCA's head of retail enforcement, said: "This case highlights the importance of being honest with the regulator.
"Because of [Mr] Riches' lack of honesty and integrity, and the inherent risk he poses to consumers and confidence in the financial system, we are banning him from performing any regulated activity."
Mr Riches provided the authority with evidence that a penalty above £63,000 would cause him serious financial hardship.
The FCA highlighted that were this not the case it would have imposed a penalty of £139,581.77 plus interest on him.
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