View more on these topics

FSA confirms insurance broker ban

The FSA has banned an insurance broker from working in the financial services industry after the Upper Tribunal upheld the regulator’s case against him.

Derek Wright’s case was first made public last May. The publication of the decision notice against Wright was significant as, along with one other case, it marked the first time a decision notice that had been referred to the tribunal was published under powers given to the FSA in 2010.

Wright referred the case to the Upper Tribunal in March 2011, which backed the FSA’s decision to ban him a year later.

In September 2001, Wright was disciplined for misconduct by the Lloyd’s of London Disciplinary Tribunal after being found guilty of four charges relating to his previous role as director at an unnamed insurance broker.

The LDT found Wright arranged for premiums to be paid by cheque made out to him personally rather than the company he worked for. He kept more than £60,000 and arranged for the company to issue cover notes and pay the premiums to insurers.

From 1997, Wright ran Essex-based Moorgate Insurance Agencies, which was authorised by the FSA from 2004 to 2008.  During this time Wright acted as a director of Moorgate, despite never having been approved by the FSA as a director.

The only person within Moorgate who was approved to act as a director was Wright’s wife Mary, who had little to do with the firm on a day-to-day basis.

Moorgate’s retail mediation activities returns to the FSA consistently showed the firm’s capital resources were below the required levels.

In February 2007, Wright informed the FSA that the firm’s capital deficit of £14,909 would be plugged by a share issue. But while a copy of a Companies House form was submitted to the FSA purporting to show an allocation of shares to Wright, the annual returns submitted by the firm to Companies House later that year showed no new shareholdings.

In 2008 the FSA asked Wright to prove that Moorgate’s creditors had been paid, and that debtors’ money had been collected. His response was that another broking firm had taken over responsibility for collection and payment of premiums, which took place without the FSA’s knowledge.

FSA head of retail enforcement Tom Spender says: “This case graphically illustrates the dishonesty and lack of integrity that some brokers will exercise if it suits their purposes.

“Wright dishonestly sought to hide his past and rehabilitate himself by posing as someone authorised to carry out regulated functions for Moorgate, when he was not. The FSA will continue to take strong action whenever we see this type of conduct.”


Richard Woolnough: UK banks facing downgrades

M&G fund manager Richard Woolnough says UK banks are facing downgrades as part of a wave of credit rating cuts in the European banking sector set to deepen the eurozone crisis. Speaking at a Fidelity FundsNetwork investment forum on Friday, Woolnough said he is maintaining an underweight position to financials in the team’s bond funds […]

Out of context

“When I am at home, I always have Kerrang! on in the background.” EGL financial technology consultant Eddie George gives an MM hack an insight into his taste in music. “It is important that the management drinks tea and knows the cricket score.” M&G recovery fund manager Tom Dobell on how he picks the right […]

Rents to keep rising, says RICS

Rents rose further in the three months to April, with 13 per cent more chartered surveyors reporting rises rather than falls in the three months to April. The latest survey from the Royal Institution of Chartered Surveyors shows the growth was largely driven by increasing demand as a net balance of 15 per cent more […]

Fund firms issue gold warning

Skandia, Fidelity Worldwide Investment and Eden Financial have warned investors they do not feel gold is a safe-haven asset. Gold is skirting a bear market with gold futures trading at close to $1,593 an ounce on May 21, a 15 per cent drop from a high of $1,881 on August 29. Skandia head of multi-manager […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Martyn Sinclair 22nd May 2012 at 2:32 pm

    I am sure the broker deserved to be banned all very interesting.

    Why cant our erstwhile regulator do something news worthy that will grab the headlines in a positive and beneficial way, rather than these constant barrages of big regualtor flexing muscles on the sprats.

    Wouldnt it be great if IFA’s / advisers / brokers could at least feel inspired about the future and the regulator rather than this constant battle about what an earth the FSA actually do other than increase their coffers by fining firms and banning small fry.

Leave a comment


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