A Mortgage broker has been struck off by the FSA

Mortgage broker Paramjit Singh Bali has been banned by the FSA from carrying out regulated activities after failing to take action against potentially fraudulent mortgage applications.

Paramjit Singh Bali is of Bali Financial Services

Bali, of Southend on Sea, did not manage his business responsibly and effectively in order to comply with FSA requirements.

Some mortgage lenders have now refused to accept business from Bali. The FSA received information from one of these lenders that it had removed Bali from its panel due to concerns about mortgage applications submitted.

Suspicious cases

Bali was struck off by the FSA for failure to identify and take action against any unusual, suspicious or potentially fraudulent mortgage applications, and failure on a number of occasions to deal with the FSA in an open and cooperative way.

The FSA concluded that he was not, and would never be, readily willing and organised to comply with the FSA's Principles for Businesses.

Appropriate action

Michael Lord, head of mortgages and credit unions, small firms division of the FSA, said:
"It is essential that firms comply with our rules at all times and we will take the appropriate action when failures occur. We look at the way firms are organised and the systems and controls they have in place. We take these measures very seriously as they can help to prevent fraudulent mortgage applications."

"Firms must also ensure that customer files are correct and updated where necessary. They should be able to provide us with any files when requested to do so for supervisory purposes."