An insurance broker who covered up past convictions for fraud, and who defrauded his customers has been banned by the FSA.
Neil McKay of Ideal Insurance Services Ltd was leaving his customers uninsured and pocketing their monthly premiums.
During a visit in April 2008, the FSA found McKay had arranged insurance contracts before cancelling them without his customers’ knowledge and then kept their premiums for himself.
Clients were left without insurance, in many cases for a substantial period of time.
Lancashire-based McKay also covered his shady past by failing to inform the FSA that he had been found guilty of eight counts of obtaining property by deception in 1996.
He failed to disclose the conviction and an eight-month jail sentence he served when applying for approved person status. It was unlikely he would have been approved given his criminal past.
Jonathan Phelan, head of retail enforcement at the FSA, says: "The FSA will not tolerate insurance brokers who put customers at risk by failing to ensure their clients have appropriate cover.
“Taking client premiums and then failing to arrange insurance, and cancelling contracts of insurance without customers' knowledge or approval are unacceptable practices as is lack of frankness about a person’s past history when applying for FSA approval.”
McKay has been banned from serving any financial services function and his firm has had its permission cancelled.
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