The Financial Services Authority (FSA) has prohibited Alan Dennis Garlick, director of Chapel Finance, from carrying out regulated activities citing a lack of compliance with regulatory standards.
The FSA found that Garlick failed to ensure that guaranteed asset protection policies and payment protection policies sold from 1 January 2005 to 20 April 2005, were underwritten. Chapel also held client money which it was not authorised to do and did not comply with the FSA's client money rules.
Jonathan Phelan, head of retail enforcement at the FSA, said: "Insurance brokers must make sure that policies are underwritten at all times. Having systems and controls in place is essential to ensure compliance with our rules and it is a management responsibility. Garlick, as director of Chapel, should have overseen the implementation and maintenance of adequate systems.
"Any failures we identify will be viewed seriously and we will take the appropriate action, which includes prohibition from the industry as shown in this case."
Chapel sold car finance and motor related insurance products. It went into administration in February 2006. After the firm ceased to do business, one of its creditors notified the FSA of its concern that some of the firm's insurance business was not underwritten.
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