On 2 May 2008, FSA published the Final Notice it has issued to Mr Isah Attayi Mohammed (Mr Mohammed), a mortgage broker and the sole principal of Initial Financial Services (UK) Limited (IFS), prohibiting him from carrying out any function relating to regulated activities. FSA has banned Mr Mohammed for failing to meet minimum regulatory standards of honesty and integrity, following evidence that he knowingly entered false information on mortgage application forms, and submitted false mortgage applications to lenders.

IFS applied on a voluntary basis to cancel its FSA authorisation in March 2008 and Mr Mohammed's approved person status was withdrawn at that time.

This is the fifth ban FSA has imposed on mortgage brokers and introducers so far in 2008 for involvement in mortgage fraud. Jonathan Phelan, Head of Retail Enforcement, FSA, commented that FSA is continuing to find evidence of mortgage brokers making false declarations on their own mortgage applications as well as submitting false mortgage applications for customers. He explained that where FSA comes across this practice, it will prohibit relevant individuals from performing any functions relating to regulated financial services.

Mr Phelan went on to advise that future regulatory action for serious cases of this kind may include heavy financial penalties, in order to deter others from carrying on this kind of behaviour. This action reflects FSA's commitment, set out in its business plan for 2008/09, to tackle mortgage fraud as one of its financial crime supervisory priorities. For more information on the business plan 2008/09, see Legal update, FSA publishes its business plan for 2008/09 and consults on fees and levies.