The former chief executive of Crowe Syndicate Management has begun making payments worth a total of nearly £313,000 to Names on motor syndicate 963.
Andrew Wallace is required to give money back to investors after he admitted one charge of conducting insurance business with a lack of good faith and three charges of discreditable conduct at Lloyd's.
In 1981 he was appointed deputy active underwriter of syndicate 963, then active underwriter in 1993. In July 1999, he became chief executive of Crowe Syndicate Management. He resigned in June 2001 for "personal reasons".
Wallace admitted to the Lloyd's Disciplinary Tribunal he made a personal investment in 15% of the shares of the Irish Insurance Company without Lloyd's consent.
The tribunal said his failure to disclose his interest in the shares of the underwriting agency resulted in a "substantial personal gain".
It said: "By virtue of his position as active underwriter, Wallace owed a fiduciary duty to the members of the syndicate."
Between 1993 and 1996, as a result of holding the beneficial interest in these shares, he was paid £405,177, receiving £295,779 after tax.
His right to work in Lloyd's has now been permanently and totally suspended. He also has to pay Lloyd's costs of £19,504.60 and has agreed to account for £312,838.32, the amount of benefit and interest he received, to Names on the relevant years of account of syndicate 963.
Last week Names were sent letters advising of the conclusion of the proceedings. Their accounts have been credited.
