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FSA/PN/131/2005
7 December 2005

The Financial Services Authority (FSA) announced today that it has kept more than 600 unsuitable mortgage and general insurance (M&GI) firms out of the industry since the start of regulation.

M&GI firms must apply for authorisation in order to be regulated and conduct business legally. FSA records show that, at the first stage of the authorisation process, approximately 550 M&GI firms either withdrew or were refused permission to conduct business. At the second stage of the process where firms can appeal to the Regulatory Decisions Committee (RDC), approximately 60 firms withdrew or were refused. The Tribunal is the third and final part of the process, and 11 firms have withdrawn or been refused.

Andrew Honey, Head of Insurance in the Small Firms Division of the FSA said:

"One year on from mortgage regulation, and nearing the anniversary of GI regulation, this is good news for the industry. It is essential that unfit firms are kept out to ensure there is a level playing field for the benefit of intermediaries. It also provides crucial protection for consumers. In order to achieve this, the FSA has a robust authorisations process and is willing to defend its decisions."

Authorised firms need to fulfil the FSA's threshold conditions and be fit and proper to conduct regulated business. Firms are refused for failing to disclose information which includes previous convictions, issues with previous regulatory bodies, and a lack of appropriate management or systems and controls.

Details of firms regulated by the FSA - either directly authorised or as appointed representatives of authorised firms can be found using the Firmcheck service on the FSA website.

NOTES FOR EDITORS

  1. Andrew Honey, Head of Insurance in the Small Firms Division of the FSA, is speaking at the CII Learning and Development Forum today.
  2. Firms that are refused at the first stage will receive a Warning Notice, however, they can appeal to the RDC. Firms that fail at the RDC will be sent a Decision Notice and have 28 days to appeal to the tribunal. However, if they are refused at this stage then they will receive a Final Notice which is the end of the process. If firms do not appeal to the tribunal, or if the tribunal rules against them, then a Final Notice of non-authorisation is automatically generated.
  3. Tribunals decisions:

    1. NUZIO DIPACE
      Result – Applicant withdrew reference
    2. CATHRINE TZOU/ INFIELD ENTERPRISES LIMITED
      Result – reference dismissed for failure to comply with Tribunal Direction
    3. SHAFQUAT RAJAH/ HERITAGE PFC – (Applicant failed to disclose
      Judgment debts when submitting application form, was found unsuitable and had a lack of financial resources)
      Result – reference dismissed following Hearing
    4. RAJIV KHUNGAR/ KHUNGAR HOME LOANS LIMITED – (Applicant had criminal convictions in 1992 for deception in connection with mortgage activities, had been bankrupt in 1991, had been investigated and warned in 1999 for infringement of regulated activities and did not disclose those facts)
      Result – reference dismissed following Hearing
    5. MARTIN ASH/ RIDGE INSURANCE
      Result – Applicant withdrew reference
    6. NILESH PATEL/ EASYFINANCIAL LIMITED
      Result – Applicant withdrew reference
    7. PAUL ARABSKYJ/ JR COMMERCIAL AND RESIDENTIAL
      Result – Applicant withdrew reference
    8. PROMINENCE TECHNOLOGY LIMITED – (the named officer was found not to be fit and proper due to antecedent history and lack of candour)
      Result – reference dismissed following Hearing
    9. PETER TAYLOR/ HOMEBUYERS (WEST COUNTRY) LIMITED/ HOMEBUYERS FINANCIAL SERVICES (LONDON) LIMITED
      Result – Applicant withdrew reference
    10. JOHN SUTER – (the applicant failed to disclose material facts/ cooperate with the FSA and was determined not to be a fit and proper person)
      Result - reference dismissed following Hearing
    11. JAMES MABON
      Result – reference dismissed for failure to comply with Tribunal Direction
  4. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
  5. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness

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