Questionable introductions and poor advice cost mortgage broker £17,500

Two-man Nottingham mortgage broker Gillen Farrelly would have done well not to place so much confidence in their third party introducer when accepting self-certified business. Although the FSA noted in December 2005 that the firm had conducted no due diligence on the unqualified accountant and had no introducer agreement in place, and despite its assurance in March 2006 that all referrals would be monitored to check their suitability, the undertaking was not honoured up to November 2007. In 12 of 20 files reviewed, when the introducer brought the business, he was also accountant to the customer, yet no accounts were used to support the application.