FSA bans pet insurance broker
17th December 2007The Financial Services Authority (FSA) has today banned David Holland, sole director of Flett Sinclair Insurance Brokers Limited (FSIB) and Petsure Limited, for misusing customers' assets. This is the first time the FSA has taken action against a pet insurance intermediary.
From September 2005 to May 2007, Mr Holland marketed and sold pet insurance policies to customers through Petsure Limited, an agency of FSIB. During that period he:
- placed premiums amounting to at least GBP162,000 into his own personal bank account and used this money for personal expenditure;
- failed to hold premiums in a designated account for client premiums; and
- failed to prepare and submit monthly returns together with payment of premiums to the insurer.
Margaret Cole, FSA Director of Enforcement, said:
"Using premiums received from clients for personal use in this way is inexcusable. The FSA will take action against firms and individuals that misuse client funds in this way - where an intermediary receives money from clients on behalf of an insurer, it must pass this money on promptly."
Despite not receiving premiums from Mr Holland, the insurer has met claims made by policyholders of pet policies renewed by Mr Holland between 27 September 2005 and 6 February 2007.
The FSA has also cancelled the trading permission of Flett Sinclair Insurance Brokers Limited, of Ilford Essex.
