FSA bans insurance trio for misuse of client funds

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The FSA has banned three insurance company directors for misusing client money and failing to keep it notified on a client account deficit.

Stuart Lawton, Paul Adams and Robert James, directors of London-based BPS Insurance before it went bust, have all been banned from certain regulated financial services functions, including senior management. Just months before the firm went into administration, the FSA discovered the trio had continually failed to inform it of a £3m deficit in its client account. In addition, they had used clients’ money to pay for general company expenses in early 2005. The regulator found no clients were adversely affected, but they were at risk of not receiving the insurance cover they had paid for...

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