The FSA has banned mortgage broker Arthur Kirk, trading as Grosvenor Mortgage Advice Centre, for failing to establish proper systems and controls at his business based in Manchester.
Grosvenor Mortgage Advice Centre’s permission has also been cancelled.
The regulator ruled that as a result of these failings the firm was at risk of being used for financial crime, particularly mortgage fraud, and customers of the firm were exposed to the risk of receiving unsuitable advice on mortgage contracts.
Kirk also failed to take remedial actions required by the FSA to put matters right at the firm.
Margaret Cole, FSA director of enforcement, said: “Kirk lacked competence and capability and showed a fundamental failure to understand the requirements and standards of the regulatory system. Even when FSA staff visited the firm in 2007 and 2008 and set remedial action