A mortgage broker has had his permissions cancelled after misleading the Financial Conduct Authority about his capital resources position.
Huddersfield-based Michael Wilkinson, trading as Michael Wilkinson Mortgages, did not have adequate financial resources for the regulated activity he carried out.
The FCA had asked Mr Wilkinson to provide documentary evidence of the information he submitted through RMAR but it said he has still not provided “satisfactory and verifiable” evidence to support his claims.
In a final notice, the FCA said: "There are material discrepancies between the financial information reported by Mr Wilkinson in his annual accounts and the corresponding RMARs.
"In addition, there are similarities in the financial information reported by Mr Wilkinson in each of his RMARs since at least the RMAR for the period ended 1 September 2012.
"These circumstances, taken together with the fact that Mr Wilkinson has not produced verifiable evidence to support financial information reported in the March 2015 RMAR, indicate that Mr Wilkinson has, since at least 1 September 2012, reported inaccurate information in his RMARs."
Under the FCA’s rules Mr Wilkinson had a capital resources requirement that is the higher of £5,000 or 2.5 per cent of the annual income from his insurance mediation and home finance mediation business.
Based on Mr Wilkinson’s annual income – £42,094 according to his annual accounts to 31 August 2014, 2.5 per cent of which is £1,052.35 – he has a capital resources requirement of £5,000.
The FCA said: "Mr Wilkinson has failed to satisfy the authority that his business is, and will be, managed in such a way as to ensure that its affairs will be conducted in a sound and prudent manner or that he is a fit and proper person having regard to all the circumstances."
