The FSA has banned four individuals for failings in relation to insurance fraud.
The regulator also imposed a fine of £50,000 on one individual.
Barrie Duncan Aspden has been banned from performing any regulated role in financial services for acting dishonestly and without integrity. Aspden knowingly used approximately £300,000 of Orion client money to finance the creation of a new company, Click the Pepper, an online motor insurance site, which traded as Peppercom. His actions meant that several hundred customers of Orion were put at risk of being uninsured because their premiums were misused.
Aspden’s conduct demonstrated a fundamental disregard for regulation, the FSA said. Having been made bankrupt and unable to obtain approved person status, Aspden put in place three directors at Orion and Peppercom including two relatives and a family friend. All three directors lacked the competence and skills to perform their roles. This enabled him to control the business without the relevant FSA approval.
Melanie Aspden, Barrie Aspden’s wife, and Gaenor Clayton, his sister-in-law, have also been banned for their failure to demonstrate competence and capability as directors at Orion and Peppercom. They were not involved in decision-making or financial management but instead delegated these responsibilities to Barrie Aspden, an unapproved person.
They both failed to ensure client funds were used solely for the purposes they were provided for, resulting in Barrie Aspden using approximately £300,000 of Orion’s client money to fund the development of the Peppercom business.
Both Melanie Aspden and Gaenor Clayton admitted to not having the necessary experience for the director role. The FSA said that had they not demonstrated financial hardship they would have each been fined £35,000.
Paul Willment has been fined £50,000 and banned from financial services, also for his failure to demonstrate competence and capability. The fine reflects the seriousness of Willment’s misconduct as director and non-executive director of Orion and Peppercom.
Willment rarely attended Orion’s offices, had no active involvement in the management of the business and delegated his roles and duties to the unapproved employee Barrie Aspden. Between September and November 2007, Barrie Aspden withdrew over £300,000 from Orion’s client money account to fund Peppercom’s development. Willment was aware of the transfers but did not challenge Aspden about it. As a result, Aspden was able to commit insurance fraud.
The actions of Barrie Aspden came to light following information that the FSA received through its whistle blowing line. The FSA’s Small Firms and Contact Division looked into this further before referring the matter on to Enforcement for full investigation.
Margaret Cole, director of enforcement and financial crime at the FSA, said: “These four individuals acted with complete disregard for the interests of their customers and the FSA’s regulatory requirements.
