Premiums paid into a client bank accounts had been used for business expenses
The FCA has issued warning notices to two directors at separate firms over the mishandling of client money.
The first notice has been issued to a broker chief executive and director, said to have failed to act with due skill, care and diligence in relation to the handling of client money.
Between 1 April 2011 and 30 June 2012 the individual created and used inaccurate client money calculations and used premiums to cover the firm’s business costs.
The FCA has also issued a warning notice to a director at an insurance mediation firm who failed to manage the business with due skill, care and diligence.
Between 1 April and 30 June 2012 the second director failed to take adequate steps to remain informed about the firm’s financial affairs, by relying solely on general verbal assurances on the state of the business.
Premiums that were paid into a client premium bank account were also used for personal payments.
In both cases the FCA has not named the individuals as the warning notices are not final decisions, giving them the right to make representations to the regulatory decisions committee (RDC), before a final judgment is made.