Broker banned for 'persistent misuse' of client money

An insurance broker has received a lifetime ban from the financial services industry after an investigation found that he had "persistently" misused client money.

The Financial Services Authority (FSA) revealed it has banned David Marriott, former chief executive of Target Underwriting Ltd (Target) and Professional Insurance Select LTD (PISL), for failing to segregate and protect money from clients' insurance premiums.

According to the investigation, Mr Marriott also used client money to give himself and his staff bonuses and salary increases and to purchase luxury cars, resulting in a client money deficit of £570,841.

Margaret Cole, director of enforcement and financial crime at the regulator, commented: "The FSA has repeatedly emphasised the importance of ensuring that client money is adequately protected and recent action in this area shows how our focus has intensified."

It follows the case of advice organisation Moneywise IFA Limited, which has been fined £19,600 for failing to have sufficiently robust FSA compliance arrangements in place.

Posted by Claire Robin