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They are the intended victims after all.

The FSA would only have their information from the lender or the adviser and there is the possibility of the facts of the case getting distorted in the process.

The FSA, which is based in London, would have to contact the correct police station, which could be anywhere in the UK.

The mortgage adviser would have a known point of contact with the lender who can then carry out further checks, without tipping off the client.

Lenders have far more ways of verifying information than advisers and already have the authorisation from the client to do so as part of the normal mortgage process.

Once the mortgage application has been submitted that is the first step in the fraud and any prior steps are not sufficient evidence for the police to obtain a conviction.

If a client is trying to embellish their finances, it could well be to secure a particularly attractive deal as opposed to the less attractive one they would get if they were being totally honest.

In that situation, the mortgage adviser should warn the client of the consequences of his action and state that he could not be a party to it.

Alternative deals should then be presented, which fit the lending criteria and therefore stand a good chance of actually completing.

Paul White is a consultant for London-based Belgravia Insurance Consultants