Lancashire broker had failed to disclose previous convictions and prison sentence.
The FSA has banned Lancashire broker Neil McKay from trading after finding that he cancelled contracts of insurance without customers’ knowledge or approval and failed to pass premium payments taken from customers on to other intermediaries or insurers as required.
The regulator also found that McKay of Ideal Insurance Services, Chorley failed to disclose in his application to be an approved person that he had been convicted in 1996 of eight counts of obtaining property by deception and sentenced to eight months imprisonment.
Jonathan Phelan, head of retail enforcement at the FSA, said: "The FSA will not tolerate insurance brokers who put customers at risk by failing to ensure their clients have appropriate cover. Taking client premiums and then failing to arrange insurance, and cancelling contracts of insurance without customers' knowledge or approval are unacceptable practices as is lack of frankness about a person’s past history when applying for FSA approval. We will take enforcement action to stop any behaviour that leads to consumer detriment."
The failings at Ideal were identified during a visit by the FSA in April 2008 after which the firm’s permission was suspended. McKay has been banned from any financial services functions as he is not a fit and proper person in terms of his honesty and integrity.
The FSA has also cancelled Ideal’s permission with effect from today.
