FSA bans broker for being incompetent

The FSA has banned a Blackburn-based insurance broker for being incompetent and incapable.

Mukhtar Khan traded as United Finance and Insurance Services before the ban.

In a statement, the FSA said it had imposed the ban after finding that Khan was not “fit and proper on competence and capability grounds.”

The FSA carried out a treating customers fairly (TCF) review on the firm and found that Khan lacked knowledge of the area.

The regulator also found that Khan:

• Failed to put in place appropriate systems and controls at the firm;
• Failed to gather sufficient information about his customers’ personal and financial situations;
• Advised on mortgages when he was not qualified to do so; and
• Failed to make adequate changes after an external audit in 2008 found faults at United Finance.

The regulator also found that Khan had two appointed representatives (ARs), one which had no idea about the appointment and one which had never worked for Khan.

The FSA added: “It was clear that Khan did not understand the regulatory requirements relating to registering ARs and he did not take any action to understand these rules.”