Mortgage adviser banned for withholding client files

A mortgage adviser has been banned from conducting regulated activities after he failed to hand over copies of client files ahead of an FSA review.

Stephen Selby, who traded as Selby Associates, did not respond to repeated FSA requests between 16 September 2010 and 8 April 2011 for copies of client files, information regarding mortgage applications which had been declined or cancelled by a lender and other information, to allow the FSA to review his mortgage business.

The FSA said his lack of cooperation showed he was not ready, willing and organised to comply with the requirements and standards under the regulatory system, meaning he had failed to comply with Principle 11 (Relations with regulators).

It added: "Stephen Selby has also failed to satisfy the FSA that he is conducting his business soundly and prudently and in compliance with proper standards or that he is a fit and proper person having regard to all the circumstances.

"These failures are significant in the context of his suitability."

The FSA originally gave Selby a decision notice on 20 July and he did not refer it to the Upper Tribunal (Tax and Chancery Chamber) within 28 days, resulting in the cancellation of his Part IV permission.