The U.K.’s Financial Services Authority has fined Select Mortgage Services £10,500 ($14,286) for unclear financial promotions and weakness in its management systems in relation to the sale of its mortgage products. Select failed to ensure its financial promotions accurately described its Capital Repayment Plan, which meant that customers did not receive reliable information to help them make informed choices. The company also had inadequate sales process in place for the recommendation of mortgages to customers and it did not have appropriate management systems and controls in place to ensure the firm met necessary regulatory requirements. “It is essential that firms' financial promotions are clear, fair and not misleading, so that consumers know exactly what they are buying. In addition, firms need to have the right sales processes in place so that they recommend suitable mortgages,” said Margaret Cole, FSA director of enforcement.
FSA Fines Broker Over Mortgage Practices