Broker fined £1.1m and banned by FCA for misusing funds due to insurers

The ex-director of an insurance broker has been banned from the financial services industry and fined more than £1m.

Leigh Mackey, who oversaw Inspire Insurance Services, was found to have mislead the FCA and misused funds due to insurers following an investigation.

A statement by the FCA said Mackey was “not a fit and proper person as he lacks honesty and integrity and poses a risk to consumers and to the integrity of the UK financial system”.

As a result, an order has been made prohibiting Mackey from performing any function in relation to any regulated activities.

He must also pay a disgorgement of £968,479, as well as an additional £134,400.

What happened

Mackey had sole management control of construction broker Inspire between 12 September 2011 and 8 December 2019.

He used funds due to insurers to support Inspire’s operating costs and to pay for personal living expenses, according to the FCA.

Inspire also submitted regulatory reports over four years stating it had carried out required client asset audits, which Mackey had failed to carry out.

The broker was later placed into liquidation by Mackey on 6 November 2020 following intervention action by the authority.

Mackey accepted that, due to his actions, Inspire owes insurers over £660,000.

However, estimates by Inspire’s liquidator are higher, according to the FCA, suggesting a shortfall of over £2.2m.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “Mackey helped himself to insurer funds to prop up his business and personal finances.

“This fine and ban shows how seriously we take individuals who abuse their position for personal gain and risk damaging the integrity of the UK’s financial system.”