The FSA has banned a financial adviser from doing regulated business, after two insurance brokers reported he had left clients uninsured.
The regulator deemed Richard Michael Wolf, sole director of Rotheville (Insurance Brokers), as “not fit and proper to work in the regulated financial services industry as he did not act honestly and he failed to comply with its requirements”.
It says Wolf “failed to act with honesty and integrity” and misled clients into believing they had insurance cover in place, when the policies had not been forwarded on.
It also says Wolf failed to cooperate with the regulator and failed to disclose appropriately information.
The FSA took this action after two insurance brokers revealed that Mr Wolf failed to pass on his clients' insurance premiums to them - leaving the clients potentially uninsured. At one stage Mr Wolf owed over £42,000 of clients' insurance premiums to various brokers.
Additionally, investigators found that Mr Wolf did not have adequate systems and controls in place to protect his customers.
The FSA says Mr Wolf did not have processes to ensure that clients' premiums were passed on to insurers on a timely basis, to check that clients were insured, or to check when clients’ policies were due for renewal.
He also failed to disclose information to the FSA.
Jonathan Phelan, head of retail enforcement at the FSA, says: "It is imperative that firms handle clients' money properly and do not leave them believing they are insured, when they are not.
"Mr Wolf's conduct was particularly serious as it left his customers at considerable risk.
"Stopping someone from carrying out regulated business in the financial services industry is one of the toughest actions the FSA can take and we feel it is necessary in this case to protect both consumers and the reputation of the market."
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