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Mortgageland Limited, based in Farringdon, London, was reprimanded by the regulator for poor financial promotions, inadequate sales processes and record-keeping failings.

After a visit to Mortgageland, the FSA found the adviser failed to give sufficient prominence to the annual percentage rate in a mortgage promotion aimed at people with county court judgements, loan arrears or defaults.

The adviser had advertised its services in a number of publications including The Independent and Daily Mirror as well as local London newspapers The Evening Standard and Metro.

The FSA said once Mortgageland was made aware of regulatory concerns it amended its financial promotions and took steps to remedy the other failings.

Three separate firms were also fined a total of £37,100 by the FSA for inadequate sales procedures.

Mohammad Rana, who was based in Marston in Oxford and registered as Countrywide Management Consultancy but was trading as Property Compass, was fined £14,700.

Peter Scott, based in Horsham in west Sussex, trading as the Mortgage House, was fined £11,900 and Chariot Mortgage Services Limited, based in Sale in Cheshire, was fined £10,500.

The FSA said the three advisers agreed to settle early, and so qualified for a 30 per cent discount. Had they not done so, the fines would have amounted to £21,000, £17,000 and £15,000 respectively.

Problems with the records kept by the mortgage advisers were uncovered during a series of visits by the FSA's small firms and contact division, which focused in particular on self-cert mortgages and affordability mortgage advice.

All three intermediaries failed to gather adequate customer information, including personal and financial information, to demonstrate the suitability of their advice, according to the FSA.

In relation to the three fined advisers Jonathan Phelan, head of retail enforcement for the FSA, said: "It is deeply disappointing to find that mortgage brokers visited by the FSA are falling short of basic standards aimed at ensuring that they treat their customers fairly.

"We will continue to take disciplinary action against mortgage brokers who cannot demonstrate that the mortgage contracts they recommend are affordable."

Jock Cassidy, director of Middlesex-based IFA Ashley Law, said the FSA had made it clear it would concentrate on small firms and recent recruitment drives should leave advisers in no doubt it was examining the way they worked closely.

He said: "There is no reason why smaller firms should receive less scrutiny than larger firms. Any firm can cause harm regardless of their size."