| FSA bans former insurance broker boss |
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| Sunday, 16 December 2007 | |
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The Financial Services Authority (FSA) has banned a former chief executive of Insure & Go Insurance Services Limited for attempting to mislead the watchdog.
The FSA said that James Richardson failed to act with integrity and is prohibited from performing significant influence functions in relation to any regulated activity. In September 2004 Richardson told Insure & Go's auditors that Insure & Go was using a Gibraltar-based travel club scheme to limit the firm's liability for Insurance Premium Tax (IPT). In support of this he provided the auditors with an agreement dated 9 January 2003. Ineffective standard In November 2004 Richardson told Insure and Go's auditors that the agreement had not been in existence in 2003. In fact the Gibraltar Scheme did not operate until 2004 and then only to an ineffective standard. Later Richardson provided information about the Gibraltar Scheme to the FSA purporting to show that the Gibraltar Scheme had operated from 2002. FSA director of enforcement Margaret Cole said that it was crucial that chief executive officers and others with significant influence over the operations of firms displayed integrity and were candid and open with their auditors and with regulators. "Richardson failed to meet this requirement and has been banned. This sends out a message that the FSA will take strong action in future cases of this kind," Cole added. Controlled functions Insure & Go, based in Southend, Essex, is a medium-sized general insurance intermediary providing travel and other general insurance products to consumers via the internet and telephone. It began trading in January 2001 and has since grown rapidly. Gross premiums were approximately £50 million for 2005/06. Richardson previously performed the controlled functions of director and chief executive and held joint responsibility for apportionment and oversight. He resigned his directorship of Insure & Go on 3 July 2007 together with his controlled functions. The FSA said it was not pursuing any disciplinary action against Insure & Go and accepted that no customer detriment had been suffered as a result of Richardson's misconduct. Related articles Related links |
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