Edward Allen, of St Aidan's Terrace, New Herrington, is one of two directors of mortgage advice firm Homeplan Finance (UK) to be criticised in a report from the Financial Services Authority (FSA).

Along with fellow director Ronald Allen, he has been banned and publicly censured for a catalogue of errors which exposed the customers of their firm to the risk of receiving an unsuitable mortgage.

The FSA found they failed to:

• Implement adequate systems and controls to ensure quality of mortgage advice was up to standard.


• lGather relevant customer information and ensure recommendations were suitable.


• lAdequately monitor sales of mortgage contracts and produce adequate management information.

It also found Edward Allen failed to ensure his roles for direction and oversight of the firm were delegated effectively when he was off sick for more than a year.

Jonathan Phelan, head of retail enforcement at the FSA, said: "Both directors lacked the competence and capability needed to make sure their firm delivered good quality mortgage advice.

"The failings were particularly serious because the FSA first identified problems with the firm's systems and controls during a visit in 2006 and no steps were taken to remedy the situation by the time of the FSA's visit in 2008.

"The failings warranted a fine of £15,000 for each director but as they have provided verifiable evidence that they would suffer serious financial hardship if this financial penalty was imposed, we have issued a public censure instead."

The trading permission of Homeplan has also been cancelled.

The FSA's report said Edward Allen demonstrated "a lack of competence and capability" and posed "a serious risk to lenders and customers."

It added he had failed to ensure there were adequate systems and controls regarding the quality of mortgage advice given, that the firm collected the right information from customers and that information handed out was relevant and clear.

"Customers were exposed to the risk that the advice they received was unsuitable," said the FSA.

"The lack of clarity in Homeplan's letters led to customers being exposed to the unacceptable risk that they did not understand the advice they had received and/or that the recommendation made was not suitable."

The Echo has made several attempts to contact Mr Allen, but without success.