View more on these topics

FSA shuts down insurance broker after it left clients uninsured

The FSA has closed down Manchester based insurance broker M. Young Legal Associates for leaving clients uninsured by selling them insurance without underwriting in place.

The regulator has banned managing director Michael Young, also known as Mohammad Younas Yousaf, and financial director Asif Habib Malik for their roles in the affair.

The firm advised on and sold ‘after-the-event legal expenses insurance policies’ that cover the customers’ legal costs if their claim is unsuccessful.

The FSA’s investigations found that between July 2003 to March 2004 and September 2004 to November 2005, MYLA issued policies in the names of National Insurance and Guarantee Corporation Limited, IGI Insurance Company Limited and Contractors Bonding Limited despite having no underwriting agreement in place.

The regulator also says the firm failed to pass on premiums to underwriters when it did have underwriting cover, failed to adequately protect client assets and charged clients interest on credit agreements for premiums that were never paid.

FSA head of retail enforcement Jonathan Phelan says: “M. Young Legal Associates Limited exposed its customers to significant risks and potential hardship by claiming to have insurance underwriting agreements in place when it did not. Firms should not take clients’ premiums and then fail to arrange insurance.

We have banned Mr Young and Mr Malik and closed M. Young Legal Associates Limited to protect both consumers and the reputation of the insurance industry. This action is one of the toughest sanctions we can take and reflects the seriousness of the behaviour.”


Recommended

Practical training time

Filip Slipaczek and myself have decided that due to recent unpleasant criticism about my lack of practical experience, I will be taking a slight hiatus to complete some on-the-job practical work experience/training. This has so far involved dealing with:1: Standard administration arising from the Ascentric Funds direct investment wrap.2: Compiling suitability letters for mortgages and […]

Axa revises protection rates

Axa has revised its rates for level and decreasing life cover as well as guaranteed level or earlier critical illness cover and guaranteed decreasing or earlier critical illness cover.The firm says around 45 per cent of premiums have reduced in price, by 1.5 per cent on average. The other 55 per cent have either stayed […]

Life and pensions buoyant for Aegon

Aegon has reported life and pension business up by 18 per cent to £907m in the first nine months of this year compared with the same period last year.

Reform bill will shake up benefits

Canada Life is urging employers to offer group income protection as an employee benefit in light of the Government’s welfare reform bill, which is due to be introduced this month.The company says that the reform will replace the existing incapacity benefit with employment support allow-ance, which could result in many people receiving lower benefits.Group legislation […]

Budget summary – March 2016

This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment