View more on these topics

FCA bans and fines two brokers £30k

FCA logo new 3 620x430

The FCA has banned and fined former insurance brokers Terence Joint and Vroni O’Brien for failings relating to the handling and misapplication of client money.

They will pay fines of £10,000 and £20,000, respectively.

Joint and Vroni were formerly directors of Joint Aviation Services.

The regulator found Joint Aviation had used premiums paid by clients for its own use, such as to pay business expenses.

The business stopped conducting regulated activities in July 2012 and its permission was cancelled in January 2013.

At June 2012, Joint Aviation owed £150,253 to insurers for outstanding premiums, which resulted from the sale of its insurance business to another intermediary.

The FCA said that between April 2011 and June 2012, O’Brien failed to act with due skill, care and diligence leading to the firm transferring money from its client to its business bank account when it was not entitled to.

O’Brien continued to do this after a client money shortfall was identified. She also failed to take steps to understand her responsibilities as a director and the chief executive of Joint Aviation which caused the business to keep inaccurate client money calculations.

The regulator said the firm failed in managing the business and did not take reasonable steps to make sure client money accounts were operated properly.

FCA enforcement and market oversight director Mark Steward says: “Directors of an authorised firm that is permitted to hold or control client money have a duty to ensure client money is protected and handled properly.”

He adds: “Ms O’Brien and Mr Joint failed to do this and did not act with the skill, care and diligence that consumers rightly expect from the principals of an insurance intermediary.”

“Consumers should not be exposed to the risk of loss because of misconduct and, in these cases, the FCA will hold to account senior managers who have failed to take reasonable steps to prevent the misconduct from occurring.”

Recommended

1

Lifetime Isa – how it works

According to George Osborne “people like Isas – because they’re simple”. Fiona Tait is not convinced… Contributions & bonuses What he said: “From April 2017, anyone under the age of 40 will be able to open a Lifetime Isa and save up to £4,000 each year. And for every £4 you save, the Government will […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com