A mortgage brokers based in Liverpool has found itself in trouble with the UK’s financial regulator, the Financial Services Authority. The brokerage firm, PB Roberts, had its practices reviewed and investigated by the Financial Services Authority, and according to the outcome of the investigation the brokerage was unable to satisfy the FSA in many of its areas of practice.
According to reports the brokerage was unable to explain the reasoning behind some of its practices, was accused of poor record keeping by the FSA, and was accused of displaying advertisements that were not clear and could therefore be construed as misleading. Sales staff could not explain to FSA officials why certain mortgages had been recommended to certain customers, and according to reports the advertisements that were placed by the firm did not clearly outline the risks or APR figures.
One official from the FSA stated: “Firms need to know that it is unacceptable for them to publish unclear promotional material or put their customers at risk of receiving unsuitable advice. Mortgages are significant commitments for consumers and they need to be confident that they are being advised to choose the right product.”
She added: “PB Roberts placed its customers at risk and this is particularly serious when some of them were vulnerable consumers who had adverse credit histories or were trying to consolidate debts.”
The brokerage firm has been cooperating fully with the FSA, and has stated that it will be monitoring its processes and systems over the coming year, as well as carefully checking ads to ensure that they comply with standards.
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