RegulationJul 28 2021

FCA pursues mortgage broker for 'reckless behaviour'

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FCA pursues mortgage broker for 'reckless behaviour'

The Financial Conduct Authority has moved to fine and ban the director and chief executive of a mortgage broker for 'acting recklessly' but the case has been referred to the Upper Tribunal. 

In a decision notice published today (July 28), the regulator alleged Markos Markou of Financial Solutions (Euro) Limited (FSE) was not a fit and proper person and said it has withdrawn his approval to perform his current senior management functions.

The FCA has made a provisional order preventing him from performing any functions in relation to any regulated activity and imposed a penalty of £25,000.

But Markou has referred the decision notice to the Upper Tribunal where he and the FCA will each present their cases. 

The tribunal will then determine what, if any, is the appropriate action for the FCA to take. Until then its orders are provisional and will have no effect.

The City watchdog alleges that between 2015 and 2017 Markou did not have appropriate oversight of FSE's mortgage business.

It said he had failed to prevent FSE from transacting mortgage business between July 2017 and October 2017, during which time it did not have valid professional indemnity insurance.

The business had already seen interventions by the FCA between 2011 and 2015, and the regulator said following this Markou was fully aware of the serious risks that this conduct created. 

“By ignoring the risks, the FCA believes that Mr Markou acted recklessly and demonstrated a lack of integrity,” it said. 

The FCA stated Markou’s conduct had placed FSE at risk of being used as a vehicle for financial crime and did not appropriately protect the interests of consumers.

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