The FSA has closed BPS Insure Ltd (BPS) after it found a “deficiency” in the broker's bank accounts.
The FSA said a client money thematic visit had uncovered the error.
It said an Own Initiative Variation of Permission was issued to the broker on 5 May to prevent further consumer detriment.
A deficit in the client money account has forced the firm into administration, it said.
Administrators from Begbies Traynor have arranged for the mixed business commercial and personal portfolios of BPS to be transferred to Towergate Underwriting, a broker/underwriting agency.
All BPS staff have been transferred to Towergate.
