FCA bans and fines former insurance broker

The Financial Conduct Authority has fined broker Paul Cable of Bromley £140,000 for failing to act with integrity, and has banned him from working in the financial services industry in future.

Cable, who was the sole director of Media and Entertainment Insurance Service Limited, misled a client by telling them that he had arranged insurance policies for them when no such cover had been put in place.

As a result, Cable exposed the client to risk and kept the insurance premiums, which totalled £17,452.56

An FCA statement said that the size of Cable’s fine reflected the fact that he had already been subject to disciplinary proceedings for a lack of integrity towards another client.

In June 2009 the FSA banned Cable from working within certain roles in the financial services industry. However, Cable continued to work as an insurance broker – a position not covered by the FSA ban. During this time he misled a client, telling them he had taken out four insurance policies on their behalf, but did not arrange the covers and pocketed the premiums.

FCA director of enforcement and financial crime Tracey McDermott said: “Mr Cable flagrantly disregarded his obligations to his client and to the regulator. At the same time as arguing that previous misconduct the FSA had identified was a one-off error, he was systematically misleading another client and exposing them to considerable risk. His conduct demonstrates a complete lack of integrity, which has no place in the financial services industry.”