The broker, Antoinette Davis, trading as Ability Mortgage Solutions, has also had her permission cancelled.

Ms Davis had previously been an adviser at another firm, but when its proprietor was made bankrupt she agreed to set up Ability Mortgage Solutions and act as a sole trader and continue servicing her previous employer’s client base.

It was concluded that Ms Davis failed to establish appropriate systems and controls. She also didn’t take reasonable care to ensure suitable advice had been given or understand the standards the FSA requires of authorised persons. She was also unable to prove that she was providing sound mortgage recommendations.

Ms Davis employed a compliance consultant but when it identified areas of serious concern, she failed to act on its recommendations promptly.

The FSA also found that Ms Davis failed to ensure sufficient information was obtained from customers before recommending a product, which opened up the possibility that customers were offered unsuitable advice, or even sold inappropriate mortgages.

In addition, the broker acknowledged that the letters sent to customers documenting why a mortgage recommendation was suitable were generic and not tailored to the specific needs of the individual.

Tom Spender, FSA head of retail enforcement, said: “Being an authorised person requires a responsible and competent approach. Davis lacked both of these qualities which is why we have banned her and cancelled her authorised status.

“By failing to put suitable systems and controls in place, such as effective compliance monitoring and staff training, Davis demonstrated a lack of competence and capability, proving that she is not fit to perform a role of significant influence at an authorised firm.”