Both Shield Insurance Consultancy director Delwyn Way and Griffiths McAlister Insurance Brokers director Adrian Shillaker have been banned from working in financial services for failing to adequately protect client’s money and assets.
Way was also fined £77,957 to cover the amount of money stolen. Shilaker avoided a fine due to financial hardship.
Way was fined and banned for putting clients at risk by failing to ensure their insurance premiums were passed onto insurers. The fine covers the estimated amount of client money and assets that Way embezzled from Shield’s client money account to fund business and personal expenses.
Shilaker has been banned for knowingly transferring client money to Griffith McAlister’s business account to fund its business expenses. Shillaker also failed to ensure the client money was managed in accordance with the FSA’s Client Money rules including failing to segregate client money from other funds. The FSA says Shillaker’s failings left customers at risk of losing their money but says he has taken steps to ensure that monies owed to customers have been repaid. The FSA has also cancelled the permission of the firm.
FSA director of enforcement and financial crime Margaret Cole says: “It is simply unacceptable that these two individuals have failed to ensure their clients have the appropriate protection in place and as a result we have taken firm action.
“Firms must take their responsibilities to protect client’s money and assets very seriously and we have clearly set out our expectations in this area. In particular, firms must not mis-use client money, they must keep it separate from all other funds in an appropriate trust account, and client money must not be rendered vulnerable to loss or reduction.”