FSA fines former commercial broker £472,000
by Gill Montia
Story link: FSA fines former commercial broker £472,000
The Financial Services Authority (FSA) has banned and fined a former commercial insurance broker who used clients’ insurance premiums to fund his business.
Stephen Goodwin, a former partner of Goodwin Best based in Bury, Lancashire, has been fined £471,846 for his failings and has been prohibited from working in regulated financial services.
Between 2008 and 2010, Mr Goodwin and his business partner, who is now deceased, accepted insurance premiums from clients but sometimes paid the money into their business account, misappropriating £303,846 in total.
At least three clients of the firm suffered financial loss: one tried to make a claim only to find they were uninsured and two other clients paid the same premium twice to ensure their policies remained in force.
The fine, which contains a punitive element of £168,000, is one of the largest ever levied by the FSA on an individual for insurance fraud.
Mr Goodwin was declared bankrupt in April 2011 in relation to debts incurred by his firm.