The FSA has banned for life David Marriott, former chief executive of two insurance intermediaries, Target Underwriting Ltd (Target) and Professional Insurance Select LTD (PISL), for failing to segregate and protect money from clients’ insurance premiums.
Target and PISL were run as one business under the control of Marriott who used the client money to support the day to day finances at both failing firms. He also used client money to give himself and his staff bonuses and salary increases and to purchase a £27,500 car for a fellow director and a £35,000 car for himself. These payments were made against a background of worsening trading positions and business being lost by Target. His actions led to a client money deficit of £570,841 in the firms.
Under the FSA’s client money rules, firms are required to keep client money separate from the firm’s money in segregated accounts with trust status. This helps to protect client money in the event of the firm’s insolvency.
Marriott also provided false and misleading information to the FSA in his applications for authorisation in order to cover up his misuse of clients’ money. He stated that client money was safe and that a client money audit had been conducted at the firms, when he knew both statements were false.
Margaret Cole, FSA director of enforcement and financial crime, said: “Marriott acted with complete disregard for his clients by using their money for his own benefit when he knew his firms were failing. He flouted regulatory requirements and deliberately misled the FSA about his activities.
