A specialist lender has been named by the FSA as a firm linked to the mis-selling of products at a mortgage brokerage.

 

Products provided by Money Partners, a mortgage lender which is no longer trading, were found to have been mis-sold by Thomas Reeh - a former director of mortgage broker Black and White Group (B&W) - after the regulator discovered that he pressurised advisers to sell the lender’s products.

 

In the FSA’s final notice published last week, it was held that between September 2006 and November 2007 Reeh put pressure on the firm’s advisers to sell single premium Payment Protection Insurance provided by Money Partners without due regard for their suitability for the customer. 

 

It also stated that he “failed, but only to some degree, in his duty to take reasonable steps to ensure that Black and White has in place adequate compliance systems to ensure the suitability of advice”.

 

The FSA further stated that Reeh “set a ‘tone from the top’ at Black and White that focused on profit, cash flow and the increase of sales potentially at the expense of the fair treatment of its customers; and failed in his duty promptly to provide the FSA with accurate information regarding Black and White’s capital adequacy position”.

 

The Tribunal determined that Reeh’s conduct warranted a penalty of £75,000 but this was reduced to £10,000 due to his financial circumstances.

 

He has been given until 21st January 2013 to pay the penalty.