The Financial Services Authority (FSA) has banned Mr Baljit Somal (Mr Somal), a former broker at Square Mile Securities Limited, and fined him £16,000 for selling high risk shares to customers without their consent and using unacceptable sales tactics.
The FSA reviewed 11 transactions, including recorded telephone calls, involving Mr Somal between December 2005 and May 2006. In four of the transactions, Mr Somal had been dishonest by recording the purchase of shares worth £59,000 against clients' accounts without their permission. Customers would have only known about the sale when they received a demand for payment.
Mr Somal also made inaccurate and misleading claims about the high risk shares and used high pressure methods to convince customers to buy them.
Margaret Cole, FSA Director of Enforcement, said:
"Mr Somal used his position of trust to take unfair advantage of his customers, who expected him to be honest and to treat them fairly. Approved persons should take notice that the FSA expects them to always act with integrity towards their customers. We will continue to take action against any individuals that fail to do so."
Mr Somal received a 20% discount under the FSA's executive settlement scheme; otherwise the fine would have been £20,000.
