The Financial Services Authority (FSA) has fined David Head, director of Essex based mortgage and insurance broker network FT Compliance Services Limited (FTCS), £10,500 for failing to properly supervise insurance brokers who he knew had close links with a firm and individual previously disciplined by the FSA for Payment Protection Insurance (PPI) failings.
FTCS operated as a network and recruited mortgage and insurance brokers as appointed representatives (ARs). Head was solely responsible for ensuring FTCS and its ARs were compliant but he failed to put in place systems and controls to ensure that the ARs made suitable recommendations. Head therefore exposed customers to the risk of purchasing unsuitable PPI.
Source: propertytalk Live!.