A financial adviser has been fined £335,204 by the Financial Services Authority (FSA) after he deliberately retained insurance premium payments meant for the providers of the policies.
Donald McKee Morgan, who was partner at Donald Morgan Insurance Services and responsible for compliance oversight, has also been banned by the regulator.
It said Morgan deliberately manipulated the firm's computer systems and falsified monthly reports to conceal his conduct from his network, the FSA said.
The network, through which the premiums were meant to be paid, suffered financial loss as a direct result of his actions, although the firm's clients suffered no losses.
"The FSA considers Mr Morgan's conduct to be extremely serious because it demonstrates a lack of honesty and integrity. Mr Morgan abused the trust and confidence placed in him by clients and other firms," the regulator said.
"The action against Mr Morgan supports the FSA's statutory objectives to reduce financial crime, maintain market confidence and protect consumers.
Morgan was prohibited on 9 February and has been entered on the FSA's banned individuals list.
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