M Young Legal Associates had left clients uninsured
A Manchester insurance broker has been closed by the FSA after investigations revealed that the firm was selling insurance without underwriting in place, leaving clients uninsured.
Michael Young (also known as Mohammad Younas Yousaf) is the managing director, and Asif Habib Malik was the financial director, of M Young Legal Associates (MYLA) which advised on and sold 'after-the-event legal expenses insurance policies'.
The FSA's investigations found that between July 2003 to March 2004 and September 2004 to November 2005, MYLA issued policies in the names of NIG, IGI Insurance and Contractors Bonding despite having no underwriting agreement in place.
In addition, MYLA failed to pass on premiums to underwriters when it did have underwriting cover, failed to adequately protect client assets and charged clients interest on credit agreements for premiums that were never paid.
The FSA has banned Young and Malik for their roles. "Young failed to act with honesty and integrity, and he misled insurers, customers and the regulator. Malik's conduct demonstrated a very serious lack of competence and capability and a lack of integrity in his dealings with the FSA," the FSA said.
Jonathan Phelan, Head of Retail Enforcement at the FSA, said: "M. Young Legal Associates Limited exposed its customers to significant risks and potential hardship by claiming to have insurance underwriting agreements in place when it did not. Firms should not take clients' premiums and then fail to arrange insurance. We have banned Mr Young and Mr Malik and closed M. Young Legal Associates Limited to protect both consumers and the reputation of the insurance industry. This action is one of the toughest sanctions we can take and reflects the seriousness of the behaviour."
MYLA is based at 60 Fountain Street, Manchester and is also operating at 290 Manchester Street, Oldham.
