FCA fines director of insurance broker £1.1m for misusing funds

The FCA has banned Leigh Mackey from working in financial services and fined him £1,102,879 for misleading the regulator and misusing funds due to insurers.

Between 12 September 2011 and 8 December 2019, Mackey had sole management control of Inspire Insurance Services, an insurance broker for the construction sector.

The FCA says 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.

The regulator says Mackey was "not truthful" as Inspire submitted regulatory reports over four years stating it had carried out required client asset audits, however, Mackey admits it failed to carry these out.

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."