11 Feb, 2008
Published: 11:25 Monday 11 February 2008
By: Michelle McGagh, News Reporter
Financial Services Authority (FSA) has banned a former Square Mile
Securities broker and fined him £21,000 for selling high risk
shares to customers without their consent.
Mohammed Suba Miah was also found to have deliberately misled
customers by not explaining the risk involved in buying the shares.
Nineteen transactions made between December 2005 and May 2006 were
reviewed by the regulator. In 11 of those transactions, Miah was
shown to have been dishonest by recording the purchase of shares
without their permission and customers would have been made aware
of the trades only when they were sent a demand for payment.
Miah was also found to have made inaccurate claims about the
performance and value of the shares. The regulator found that
Miah's actions were considered particularly serious as they lacked
integrity as well as exposing customers to risk of financial loss.
Margaret Cole, FSA director of enforcement said: 'As a stockbroker
and approved person 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 Miah show that we take this very
Cooperation with the FSA meant that Miah received a 30% discount on
the original fine of £30,000.
This is not the first time that trading at Square Mile Securities
has come under regulatory scrutiny. It was fined £250,000
last month for using misleading information to sell customers
shares that they did not want or could not afford.
The company was found to have used high pressure sales techniques
to sell shares to older people and inexperienced investors and its
brokers did not get sufficient consent to carry out