The FSA has banned ICM and its directors for failing to pass on client money to insurers.
The regulator found that Ian Paul Ruff and Jon Uglow Batchelor had used clients' premiums to run the business.
The FSA's specific findings were:
• ICM failed to arrange insurance policies and to pass over premiums to insurers which potentially left around 300 customers without insurance
• Premiums owed to insurers by ICM, during the initial stages of the FSA investigation, were in excess of £35,000 and the firm was unable to immediately meet those liabilities
• Client money had been misused by ICM leaving consumers at risk
• ICM had no professional indemnity Insurance cover in place for over a year.
Jonathan Phelan, head of department in the FSA's enforcement division said: "ICM had serious failings which put consumers at risk. The FSA will not tolerate the failure by brokers to ensure that consumers are covered appropriately by an underwriter. We will continue to take action where consumers are left exposed by firms in this way".
ICM has agreed a repayment plan that safeguards clients' interests.
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