View more on these topics

FSA imposes life ban on insurance broker

The Financial Services Authority has imposed a lifetime ban on David Marriott for his persistent misuse of client money.

The FSA says that Marriott, who was the former chief executive of two insurance companies, failed to segregate and protect money from clients’ insurance premiums.

Both Target Underwriting Ltd and Professional Insurance Select Ltd were run by Marriott, who used client money to support day to day finances at both firms. Marriott used client money to give himself and his staff bonuses and to purchase a £27,000 car for a fellow director and a £35,000 car for himself. This was made against a backdrop of worsening trade positions and business being lost by Target. It resulted in a client money defecit of £570,841.

Under the FSA’s client money rules, firms are required to keep client money ringfenced from the firm’s money in segregated accounts with trust status.  This helps to protect client money in the event of the firm’s insolvency.

Marriott also provided false and misleading information to the FSA in his applications for authorisation in order to cover up his misuse of clients’ money.  He stated that client money was safe and that a client money audit had been conducted at the firms, when he knew both statements were false.

Simon Gowler, who was one of the directors at the firm, was fined £5,000 for failing to oversee the firm’s finances and private money controls. The fact that he took immediate action when learning of the firm’s trading position saw the FSA reduce the fine from £15,000.

The FSA says Marriott was not fined by the FSA due to his own financial position.

FSA director of enforcement and financial crime says: “Marriott acted with complete disregard for his clients by using their money for his own benefit when he knew his firms were failing.  He flouted regulatory requirements and deliberately misled the FSA about his activities.

“The FSA has repeatedly emphasised the importance of ensuring that client money is adequately protected and recent action in this area shows how our focus has intensified. We want firms of all sizes to realise that they must ensure client money is segregated in accordance with FSA rules.”


Dear Chancellor…

Whatever happened to simplification, Alistair?


Regulator hits mortgage brokers with ban and fine

The FSA has fined one mortgage broker £31,500 and banned another for reckless practices which allowed false mortgage applications to be made to lenders. Ngozika Louise Ogboru who ran JN Finance (UK) Limited, a mortgage broking firm in Harrow, has been banned from carrying out any regulated activity. Ogboru was the only approved person at […]


Early warning

The approach announced in the FSA’s policy statement on the assessment and redress of payment protection insurance complaints will not have come as much of a surprise to readers but it still represents another dark day for an industry which never seems able to shake off the blight of mass misselling for any prolonged length […]


FSA cop-out

Some of the comments and proposals in last month’s FSA paper on responsible lending, CP10/16, are entirely sensible but others are downright dangerous, with the potential for considerable consumer detriment. Making proposals that it admits will hurt some consumers is an interesting way of fulfilling the FSA’s statutory responsibility for consumer protection. It claims that […]


News and expert analysis straight to your inbox

Sign up


    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