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FSA/PN/069/2008
10 July 2008

The Financial Services Authority (FSA) has banned Mr Baljit Somal (Mr Somal), a former broker at Square Mile Securities Limited, and fined him £16,000 for selling high risk shares to customers without their consent and using unacceptable sales tactics.

The FSA reviewed 11 transactions, including recorded telephone calls, involving Mr Somal between December 2005 and May 2006. In four of the transactions, Mr Somal had been dishonest by recording the purchase of shares worth £59,000 against clients' accounts without their permission. Customers would have only known about the sale when they received a demand for payment.

Mr Somal also made inaccurate and misleading claims about the high risk shares and used high pressure methods to convince customers to buy them.

Margaret Cole, FSA Director of Enforcement, said:

"Mr Somal used his position of trust to take unfair advantage of his customers, who expected him to be honest and to treat them fairly. Approved persons should take notice that the FSA expects them to always act with integrity towards their customers. We will continue to take action against any individuals that fail to do so."

Mr Somal received a 20% discount under the FSA's executive settlement scheme; otherwise the fine would have been £20,000.

Notes to editors

1. Mr Somal was employed by Square Mile from October 2002 to September 2007.
2. The Final Notice for Mr Somal gives more information about the case and can be found on the FSA website.
3. On 14 January 2008 and 11 February 2008 respectively, the FSA took action against Square Mile Securities Limited and Mohammed Miah, a former broker at the firm, for using high pressure sales tactics and misleading information to sell customers shares they did not want or could not afford. Details of these actions are available on the FSA's website.
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.