The Financial Services Authority (FSA) has removed the approval of a director at a Durham-based mortgage broker to hold senior positions after 300 customers were put at risk of receiving unsuitable advice.

Roger Collins, the only director and approved person at Thoroughgood Harrison & Davies, has been banned from holding senior positions for two years after an investigation by the FSA uncovered a series of failings.

After reviewing a number of client files the regulator found that inadequate affordability assessments had been undertaken by the firm’s advisers.

The FSA highlighted “inadequate management and poor understanding of regulatory requirements” by Mr Collins.

The regulator concluded that Mr Collins lacked the competence and capability to perform senior roles of significant influence at an authorised firm.

Mr Collins was also found to have breached an undertaking to prevent an unqualified mortgage adviser from giving unsupervised advice to customers.

Margaret Cole, head of enforcement and financial crime at the FSA, said: “Collins failed to manage his firm adequately and he failed to convince the FSA that he was competent and capable of performing ‘significant influence’ functions at an authorised firm.

“Senior management who do not demonstrate the necessary skills to ensure their firms are properly run, and their customers are protected, will face tough sanctions.”

The firm is now in voluntary liquidation and no longer active in the market.

The regulator has waived a £30,000 fine – for failing to comply with a statement of principle of the Statements of Principle and Code of Conduct for Approved Persons – after it was found that the fine would cause severe financial hardship and threaten the director’s solvency.

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