The Financial Services Authority (FSA) has censured and banned three directors from private client stockbroker Simply Trading Group.

Stephen Coles, Luke Ryan and Michael Yamoah have all been banned from holding senior management positions for falling short of FSA standards.

An investigation into the trio by the regulator found a number of faults with the ways the firm  was run.

Margaret Cole, director of enforcement and financial crime at the FSA, said senior management was responsible for the standards and conduct of business.

She said, ‘We believe that Coles, Ryan and Yamoah would pose a serious risk to consumers and to confidence in the financial system if they were to act as senior managers in an authorised firm.

‘For this reason, they have been prohibited from carrying out any senior management roles in the future.’

The regulator found that the firm relied too heavily on an external compliance consultant for advice on how to run the business. The directors also failed to ensure regulatory requirements were met and monitored two authorised representatives.

Failure to monitor the authorised representatives creatied a risk that customers may have receive unsuitable investment advice, according to the regulator.

The firm with offices in London and Hampshire specialised in telephone sales of London-listed securities, but has since had its authorisation cancelled.

The public censure was imposed as a £17,000 fine for each of the directors was waived after they provided evidence of serious financial hardship.