David King operated in UK without authorisation
The FSA has banned David William King from managing, controlling or having significant influence over any person or companies allowed to carry out FSA regulated activities.
The FSA took this action against King because two entities under his management, CIC Costa Rica and CIC Greece, operated illegally by writing insurance in the UK without being authorised.
CIC Costa Rica and CIC Greece were not approved in the UK, Greece or Costa Rica to carry out regulated insurance business. Despite this, they issued more than 1,800 insurance policies to UK businesses, the FSA said.
This meant the policyholders, ranging from fish and chip shops to construction companies, did not have proper insurance and risked substantial loss and even prosecution.
During this time, King made false statements about CIC Greece's existence and its authorisation to carry out insurance business.
The FSA said King stood to gain personally after allowing underwriting agents to sell invalid policies on behalf of CIC Greece and CIC Costa Rica. “Under his management, no adequate due diligence was undertaken to ensure that CIC Costa Rica could honour its financial commitments,” it said.
Margaret Cole, FSA Director of Enforcement said: "Mr King's conduct showed a lack of competence, integrity and honesty which seriously undermined consumers' confidence in the insurance sector. Our action should serve as a warning to those who operate illegally that we will not hesitate to take action when they put consumers at risk.
"Consumers, particularly business owners, should check that a firm is authorised with the FSA before signing up or they risk losing their hard earned money or even going out of business."
In reaching its decision, the FSA took into account that King was open and co-operative during the investigation and helped with the refund of premiums to policyholders.
