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A man took his disobedient donkey to a trainer. The trainer immediately produced a huge stick and started beating the donkey.

The man was horrified. He said: "You cannot train my animal like that."

"I am not training it", replied the man, "I am merely getting its attention."

The regulation of mortgages and general insurance is less than two years old but it was only at the start of 2008 the FSA started to flex its muscles.

Since then brokers have been banned for mortgage fraud and more than 200 suspected cases have been reported to the FSA by lenders – so expect more bans and more fines.

There are two separate issues for advisers to consider. The first is basic record keeping. In the absence of decent records the FSA and the ombudsman will side with the client and may well reprimand or fine the adviser for poor practice.

The second is fraud and these days even gilding the lily a little to help a borderline client could be considered fraud.

Might someone be tempted to cross the line just to make a target? How good is your management information and how stringent are your internal checks?

You may think you are too busy now to check up but when the FSA pays you a visit, as they surely will, they will make the time to look in detail.

This week the FSA slapped a record fine on an apparently wealthy but undoubtedly fraudulent mortgage broker in Ilford for falsifying personal mortgage applications.

The FSA ought to have your full attention now.

Simon Webster is managing director of Facts & Figures Financial Planners Limited