The FSA said 19 firms lost their authorisation to do business in the year ended 30 June 2004.
In addition, more than 100 firms were forced to make remedial changes to the way in which they operated, as part of the FSA's drive to maintain standards among smaller financial firms.
Action was taken for offences including a lack of professional indemnity insurance, problems with a firms' financial resources, failure to comply with ombudsman awards, non-cooperation with the FSA and the non-payment of FSA fees.
In the year to 30 June 2004:
Approximately 50 firms addressed breaches of the threshold conditions when presented by supervisors with the prospect of a referral to the FSA
59 other firms who were referred to the FSA took remedial steps when faced with imminent enforcement action;
A further 19 firms had their permission to conduct investment business cancelled for breaches of the threshold conditions, the action being taken in support of the FSA's consumer protection and market confidence objectives
Two individuals with convictions for financial crime were prohibited.
Retail markets business unit managing director Clive Briault said: “Public confidence in the financial system relies partly on authorised firms meeting the FSA's minimum standards in terms of having adequate resources and being fit and proper to conduct investment business, whatever their size.
“We aim to work with firms to help them maintain the required standards, but the action taken over the past 12 months should send a message to all small businesses regulated by the FSA that we will not allow firms which fall significantly below the minimum standards to remain authorised.”
The 19 firms who had their permissions cancelled were:
· Oriental & African Strategic Investment Services Ltd
· Merton Securities Ltd
· Keith Taylor Financial Services
· RA Logan & Co
· Reynolds & Dodd
· Eric Sweet
· HPA Services
· Harry Whitehouse
· Homebuyers (West Country) Ltd
· MM Insurance Services
· Birrell Financial Services Ltd
· Michael Harding & Partners
· FT Investment & Insurance Consultants
· Goldcrest Capital Ltd
· Croydon Branch Union of Communications Workers Credit Union Ltd
· Derek Craig
· Anthony Reed Ltd
· MMD Corporate Finance Ltd
· Fleet Mortgage Insurance & Financial Services.
