Number of brokers banned doubles in a year

Number of brokers banned doubles in a year


The number of financial advisers who have been banned from practicing by the FSA has risen by over 50% in the past year and since 2005, the number of prohibited individuals has gone up almost eightfold.

There are now record numbers of financial firms being fined and banned by the City watchdog; this has been attributed to the worsening economic climate bringing more cases of mortgage fraud to light.

The Association of Chief Police Officers stated in a report that the value of mortgage fraud in 2007 reached £700 million – it is thought that the figure has increased substantially since then.

KPMG Forensic, a consultancy on fraud and financial crime, has warned that fraudulent behaviour is now much easier to spot, as lenders are looking more carefully at broker activities.

Vince Cable, the Liberal Democrat treasury spokesman has called the increase in fraud levels “shocking”, saying: “As the wheels come off the economy, more and more cases of mortgage fraud are coming to light. People who, in the boom years, were happy to lie about their own or their clients’ incomes to secure ever larger mortgages are now coming undone.”


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