FCA fines and bans insurance broker

The FCA has also withdrawn Mr Whittington’s approvals to perform controlled functions at Savesure Limited, an insurance intermediary of which he was a shareholder. In January 2014 Mr Whittington informed the FCA that Savesure had ceased trading and in July 2014 Savesure entered voluntary liquidation.

According to the FCA, between March 2012 and December 2013, Mr Whittington deliberately misappropriated insurance premiums paid to Savesure by its clients for insurance, by transferring more money from Savesure’s client premium bank account to its business account than Savesure was entitled to receive as commission.

The misappropriated insurance premiums were primarily used to fund Savesure’s business expenses however some of the money was used to repay funds Mr Whittington paid into Savesure from his personal finances or from funds raised through creditors.

Mr Whittington knew that Savesure was not entitled to all of the money being transferred and nevertheless made the transfers as required to pay Savesure’s expenses.

The FCA found that Mr Whittington failed to act with honesty and integrity by knowingly causing Savesure to misappropriate insurance premiums paid to Savesure by its clients.

Mr Whittington agreed to settle at an early stage of the FCA’s investigation and therefore qualified for a 30% (stage 1) discount.