The Financial Conduct Authority has banned the former director of an insurance broker from working in financial services and fined him £1,102,879 for for misleading the FCA and misusing money that was due to insurers.
The regulator said in a statement on 11 November that between 12 September 2011 and 8 December 2019, Leigh Mackey had sole management control of Inspire Insurance Services Ltd (Inspire), an insurance broker for the construction sector.
Mackey used funds due to insurers to support Inspire’s operating costs and to pay for personal living expenses instead of paying insurers.
By his own admission, Mackey accepts that, due to his actions, Inspire owes insurers over £660,000. Estimates by Inspire’s liquidator are significantly higher, suggesting a shortfall of over £2.2m.
Mackey was not truthful with the FCA. Inspire submitted regulatory reports over four years stating it had carried out required client asset audits. Mackey admits it failed to carry these out, the FCA said.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA said: “Mr Mackey helped himself to insurer funds to prop up his business and personal finances. This fine and ban shows how seriously we take individuals who abuse their position for personal gain and risk damaging the integrity of the UK’s financial system.”
Mackey’s penalty comprised of two elements – disgorgement of £968,479 and a penal element of £134,400.
The FCA made the order prohibiting Mackey from performing any function in relation to any regulated activities carried on or by any authorised or exempt person or exempt professional firm, pursuant to section 56 of the Act.
Inspire was placed into liquidation by Mackey on 6 November 2020 (following intervention action by the FCA) and remains in liquidation as of the date of this statement.
