The Financial Services Authority of UK has levied a fine of GBP31,500 on Blake Independent Financial Services for failing to maintain adequate capital and providing misleading financial information to the FSA.
Financial Services Authority (FSA) found that Blake Independent Financial Services (BIFS) failed to ensure that it maintained adequate financial resources from the date of its authorization on October 29, 2003 until July 2007.
FSA has also found that before authorization BIFS did not put in place subordinated loans, which rank after other debts should a company fall into receivership or be closed, required by the FSA to meet its capital resources requirement and BIFS submitted FSA regulatory returns which indicated that it had the required loans in place and provided the FSA with misleading loan agreements which did not match those countersigned and held on file by the FSA.
BIFS has co-operated fully with the FSA and agreed to settle at an early stage of the investigation and therefore qualified for a 30% discount of the fine. Without the discount the fine would have been GBP45,000.
Jonathan Phelan, head of retail enforcement division at FSA, said: The fine sends out a clear warning to the industry that the way in which firms conduct their business and the way they interact with the FSA are as important as ensuring that individual rules are not breached.