FSA bans brokers for bending money rules

The FSA has slapped bans on two brokers for breaching client money rules.

Shield Insurance Consultancy director Delwyn Way and Griffiths McAlister Insurance Brokers director Adrian Shillaker demonstrated a “lack of integrity and honesty” for failing to protect their clients’ money and assets, said the FSA.

Way has been fined £77,957 and banned from working in financial services for not ensuring that premiums were passed to insurers. The fine covers the estimated amount of client money and assets that Way embezzled from Shield’s client money account to fund its business and personal expenses.

Shillaker has been banned from working in financial services with immediate effect for deliberately transferring client money to Griffiths McAlister’s business account to fund its business expenses. The FSA has also cancelled the firm’s permission to perform restricted functions, but did not fine Shillaker because of money issues. He has taken steps to repay money owed to customers.

FSA director of enforcement and financial crime Margaret Cole said: “It is essential that customers have confidence that their money and assets are safe and that firms holding their money have strong management oversight and control over their business. It is simply unacceptable that these two individuals have failed to ensure their clients have the appropriate protection in place and, as a result, we have taken firm action.

“Firms must take their responsibilities to protect clients’ money and assets very seriously, and we have clearly set out our expectations in this area. In particular, firms must not mis-use client money, they must keep it separate from all other funds, and client money must not be rendered vulnerable to loss or reduction.”