The FSA found that since June 2007, King has submitted applications for 39 fraudulent life assurance policies in order to benefit from commission payments in excess of £250,000.
In 30 of the applications, consumers’ personal details were either wrong or applicants knew nothing about the policies.
King admitted that his plan was to submit the policies, claim the commission and use the money to settle substantial outstanding debts.
FSA director of enforcement Margaret Cole says: “Peter King acted dishonestly and without integrity and posed a risk to consumers and to confidence in the financial system as a whole. The FSA will not hesitate to take action against individuals or firms who break our rules and put customers at risk of fraud.”