Thinc sorry for sub-prime errors after £900k FSA fine

Thinc Group has apologised for failures when selling and advising on sub-prime mortgages after the firm was yesterday fined £900,000 by the FSA.

The group was penalised for not having adequate risk management and compliance systems, and for failing to keep adequate records of advice given to customers.

The regulator also said the firm continued to exhibit serious failings even after it paid a visit to the group in February 2007.

Thinc says it has begun an internal review of its systems to ensure the failings aren’t repeated.

John Simmonds, chief executive of Thinc, says: “We sincerely regret the shortcomings that have been identified with regard to record-keeping processes relating to a small number of sub-prime mortgages.

“We are continuing a comprehensive review of our systems to ensure that these are improved.

“While I believe that the industry as a whole faces the challenge of raising standards, Thinc is a strong company and is well placed to achieve this.”

The offences took place between 1 January 2006 and 30 September 2007 and include; failing to obtain financial information about customers; failing to demonstrate a customers credit history merited a sub-prime mortgage; and failing to demonstrate that affordability was considered when recommending mortgages to customers.

Margret Cole, director of enforcement at the FSA, says: “This case demonstrates the importance of firms being able to prove to themselves and to the FSA, through proper records, that they are treating their customers fairly by doing everything necessary to make sure that they get suitable advice.”

Contact:
Scott Sinclair
News Editor
020 7034 2636
scott.sinclair@incisivemedia.com