Broker banned for using £570k of client money
The Financial Services Authority (FSA) has imposed a lifetime ban on David Marriott, a former chief executive of two insurance intermediaries:
Target Underwriting Ltd and Professional Insurance Select Ltd.
Mr Marriott failed to segregate and protect money from clients’ insurance premiums and used client money to support the day-to-day finances at both failing firms.
He also used client money to give himself and his staff bonuses and salary increases, and to purchase a £27,500 car for a fellow director and a £35,000 car for himself.
His actions led to a total client money deficit of £570,841.
In addition, Mr Marriott provided false and misleading information to the FSA, stating that client money was safe and that a client money audit had been conducted, when it had not.
The regulator’s director of enforcement and financial crime, Margaret Cole, says: “The FSA has repeatedly emphasised the importance of ensuring that client money is adequately protected … we want firms of all sizes to realise that they must ensure client money is segregated in accordance with FSA rules.”
The FSA says it has recently established a new unit to strengthen its existing capabilities in the area of client money and assets.
Category: Financial Services Authority News, Insurance News
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