FSA bans London broker

FSA bans London broker


As part of the Financial Services Authority’s bid to step up the fight against mortgage fraud, the regulator has announced that it has banned North London broker Akin Johnson for systems and controls failings, which led to at least eight mortgage applications being submitted to lenders containing false and misleading information.

Mr Johnson who traded as Lifestyle Mortgages Islington was found out to have employed people without assessing their fitness and propriety and without providing adequate training or supervision.

He also allowed employees access to his clients’ personal data and his computer systems, allowing them to submit false and misleading mortgage applications without his knowledge.

The FSA found that he failed to put in place adequate systems and controls to identify and monitor cases being submitted, thereby allowing the business to be used as a vehicle to commit mortgage fraud.

Jonathan Phelan, head of retail enforcement at the FSA, said: "Johnson’s failings posed a serious risk to lenders and consumers. As part of our crackdown on financial crime in the mortgage market we have banned more than 40 mortgage brokers and others in the last two years and we will continue to ban people who either commit mortgage fraud or fail to prevent their firm from being used to further financial crime.”

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