FCA bans and fines broker for dishonest conduct

The FCA has banned the ex-director of an insurance broker from working in the financial services industry.

Martin Sarl, who was the sole director at Exeter-based Perry Prowse Insurance Consultants, was also fined £5,021 for acting without honesty and integrity.

The FCA said that between 7 November 2017 and 24 October 2019, Sarl failed to pass clients’ premiums to insurers, meaning that some customers were left uninsured without their knowledge.

The regulator’s investigation found that Sarl used money from the firm’s client account to pay both his personal debt and that of the firm.

That was not allowed under the FCA’s client money rules and these funds should have been kept separate.

As a result, there was not enough money to transfer the premiums – that his customers had paid to him – to insurers, leaving customers without cover and at risk of having their home and car insurance claims rejected.

’Hid the truth’

When he was asked questions by customers about their insurance, Sarl hid the truth, even going as far as blaming a false IT glitch.

In at least one instance, a customer had a claim rejected because they did not have cover in place.

“As a result of the actions of Sarl, the FCA finds that he is not a fit and proper person to perform any function in relation to any regulated activities carried on by any authorised or exempt person or exempt professional firm,” the regulator said.

“And the FCA withdraws the approval for Sarl to perform the function of SMF3 executive director at Perry Prowse.”

Sarl was also initially fined £63,600, but this was reduced as he provided evidence that the payment would cause him serious financial hardship.

Therese Chambers, joint head of enforcement and market oversight at the FCA, said: “Sarl’s customers trusted him to keep their money safe and to secure the insurance cover they needed.

“Instead he helped himself to prop up his business and personal finances. He compounded this by lying to his customers.

”This left many people at risk of being unable to make a claim should they have needed to. It is right that Sarl should be banned from the industry.”