The FSA has imposed a lifetime ban on David Marriott, the former chief executive of two insurance intermediaries, for persistent misuse of client money.
Marriott, who was a CEO at Target Underwriting and Professional Insurance Select (PISL), failied 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 client money was safe and 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, says: "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"
Simon Gowler, who was also a director of the firms, was fined £5,000 in July 2008 for failing to oversee the firms' finances and client money controls.
Once he became aware of the firms' trading position, however, he took immediate action.
The FSA has established a new unit to enhance and strengthen its existing capabilities in the area of client money and assets. The unit consists of teams responsible for specialist supervision, policy, data analysis and risk management.
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