Lancashire broker failed to pass on premiums.
The FSA has banned a Lancashire broker from trading for cancelling contracts of insurance without informing clients and for failing to disclose previous convictions.
The regulator found that Neil McKay, of Ideal Insurance Services in Chorley, had failed to pass premium payments taken from customers on to other intermediaries or insurers.
McKay failed to disclose in his application to be an approved person eight counts of obtaining property by deception and an eight months prison sentence.
Jonathan Phelan, head of retail enforcement at the FSA, said: "The FSA will not tolerate insurance brokers who put customers at risk by failing to ensure their clients have appropriate cover.”
He added: “We will take enforcement action to stop any behaviour that leads to consumer detriment.”