FSA bans two brokers

The Financial Services Authority has banned two Leytonstone insurance brokers, Faraz Ahmed Siddique and Waqas Ahmed Siddique, for lying to cover up Waqas Siddique’s criminal conviction.

Waqas Siddique was charged with conspiracy to defraud in March 2007. One month later he applied for individual approval to perform controlled functions at Aston Sterling Insurance Services Limited (Aston Sterling). On his FSA application, he signed a declaration that he had no previous criminal convictions and was not the subject of any current criminal proceedings.

According to the FSA, after Waqas Siddique’s conviction in June 2008, Faraz Siddique, told the FSA that his brother had resigned. He then applied to take over the controlled functions, but at no point did Faraz Siddique notify the FSA of his brother’s criminal conviction, despite being aware that this was the reason for his brother’s resignation from Aston Sterling.

Margaret Cole, the FSA’s director of enforcement and financial crime, said: “Aston Sterling was only able to operate as an insurance intermediary because the Siddique brothers lied to the FSA. With invaluable assistance from the Metropolitan Police and the Prison Service, we established the full extent of the brothers’ concealment of material information that should have been disclosed to the FSA.

“We have made examples of Waqas and Faraz Siddique to send a warning to firms and individuals: do not lie to the FSA. This case, and others that are due to follow, serve as a clear signal about the consequences of giving anything less than full and frank disclosure of material information to the FSA.”

The FSA has also cancelled the permission of Aston Sterling.