FSA bans broker for misleading customers

The FSA has banned Mohammed Suba Miah, a former broker at Square Mile Securities Limited, and fined him £21,000.

He sold high risk shares to customers without their consent and deliberately misled them by not explaining the risks involved.

The FSA reviewed 19 transactions between December 2005 and May 2006. In 11 of them he had been dishonest by recording the purchase of high risk shares by customers without their permission.

According to the regulator 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.

The FSA say

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.

And only last week the Ombudsman highlighted the need for stockbrokers to deal honestly with their clients.

Ombudsman case histories

The ombudsman has issued some case histories showing how they deal with disputed withdrawals from cash machines.

There are also case studies illustrating recent investment-related complaints, including stockbroking and spread-betting. These include examples where a stockbroker was giving advice on share investments, or managing them.