FSA Fines Broker GBP21,000

by Amanda Banks, Tax-News.com, London

11 February 2008

The UK's Financial Services Authority (FSA) announced on Monday that it has banned Mohammed Suba Miah, a former broker at Square Mile Securities Limited, and fined him GBP21,000 for selling high risk shares to customers without their consent, and deliberately misleading them by not explaining the risks involved with such shares.

The FSA reviewed 19 transactions undertaken between December 2005 and May 2006 involving Mr Miah and found that in 11 of them he had been dishonest, recording the purchase of high risk shares by customers without their permission.

Customers would have only been made aware of the trades when they were sent a demand for payment. Mr Miah also made inaccurate and misleading claims about the performance and value of the shares, and failed to inform customers of the higher risks associated with buying them. Mr Miah's actions were considered particularly serious because they lacked integrity, and exposed customers to significant risk of financial loss.

Margaret Cole, FSA Director of Enforcement explained that:

"As a stockbroker and approved person Mr Miah was in a position of trust. Customers have a right to expect their brokers to give clear and fair advice, recommend suitable shares and to treat them fairly. Stockbrokers are on notice that the FSA will not tolerate abuse of this trust, and our actions against Mr Miah show that we take this very seriously."

Mr Miah accepted that his conduct was improper and co-operated with the FSA's investigation. He received a 30% discount under the FSA's executive settlement scheme; otherwise the fine would have been GBP30,000.

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