View more on these topics

FSA bans and fines insurance broker £212,000

FSA e14 Building View 480

The FSA has banned and fined an insurance broker £212,000 for misappropriating money from his business and selling worthless policies to over 6,000 customers.

An FSA investigation into motor insurance firm Motorcare Elite director Harbinder Panesar revealed that between August 2008 and December 2010 he misappropriated over £180,000 from Elite and another insurance brokerage he ran, Motorcare Warranties.

South Wales-based Panesar sold a product called Supreme Plus which fundamentally failed to meet customers’ needs and was outside the scope of cover offered by its underwriters.

He also failed to report policies accurately to underwriters and sold policies after his firm’s deal with the underwriter had ended.

Despite having recently been discharged from bankruptcy, the regulator refused to reduce the fine because of the seriousness of his misconduct and says it is prepared to put Panesar into bankruptcy again if he is unable to pay.

FSA director of enforcement Tracey McDermott says: “So egregious were his actions that even though he has only recently been discharged from bankruptcy, we will not reduce the fine because of financial hardship.

“Such dishonesty and recklessness not only posed a risk to consumers, but also to other market participants and to confidence in the financial system as a whole. Panesar is learning the hard way that we will not stand for this kind of activity.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Despite having recently been discharged from bankruptcy, the regulator refused to reduce the fine because of the seriousness of his misconduct and says it is prepared to put Panesar into bankruptcy again if he is unable to pay.

    I must be missing something here. How does putting him into a further position of bankruptcy help the FSA get its fine?

  2. Between these two firms, the number of introducer firms (past and present) was 2,150. This would suggest that this chap was a big player in his market.

    Does this mean that there are 100,000s of people that have purchased worthless warranties from his business and, if this is the case, should he not be facing a custodial sentence?

  3. So while no condoning this persons action, is there any point in spending our FSA fees chasing somebody who patently does not have any money anyway?

  4. We're all doomed!!!!! 15th January 2013 at 3:58 pm

    “I must be missing something here. How does putting him into a further position of bankruptcy help the FSA get its fine?”

    “… is there any point in spending our FSA fees chasing somebody…”

    Really?…. Really????

    This character is evidently an entrepreneur. He has reportedly been discharged from his BKO, and there is every chance he might be earning some money from another venture – so why not pursue the matter?

    Alternatively, should the FSA just sit back, and let a villain like this get away with it completely? I fully support the FSA on this, and am very surprised that others do not hold the same view.

  5. i hope that f.o.s covers these consumers as these are the ones will suffer when its time to use the warranties

  6. Compliance Bloke 16th January 2013 at 8:35 am

    I fully support the FSA in chasing this *insert your chosen expletive* for whatever they can take from him.

    However, I don’t understand why they choose to do so for someone who is, in essence, a very small fish but allow larger firms to avoid fines because they don’t have the resources to pay them.

  7. How was this able to go on for so long?

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