Mortgage intermediaries banned

A pair of mortgage brokers have been banned by the Financial Services Authority (FSA) after the watchdog uncovered "serious failings".

Homeplan directors Edward and Ronald Allen did not ensure their financial advice was relevant or of an acceptable standard, the FSA said.

The body also found that Edward Allen failed to delegate his workload effectively during a protracted absence from the company.

Jonathan Phelan, head of retail enforcement at the FSA, said: "Both directors lacked the competence and capability needed to make sure their firm delivered good quality mortgage advice."

"The FSA first identified problems ... during a visit in 2006," he added.

As a result Homeplan has had its trading licence revoked by the authority.

Meanwhile, mortgage brokers Abbey for Intermediaries and Alliance & Leicester Intermediary have begun sharing senior management staff.

The pair, which are both owned by Santander, have joined forces but have no further integration plans.

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