Harbinder Panesar has been banned from working in the financial services industry and fined £212,237 for his ‘reckless’ operation of Motorcare Elite.

The FSA said he had sold products which failed to meet the needs of consumers, failed to report polices accurately to underwriters and continued to sell policies after deals with underwriters had ended.

The regulator estimates that over 6,000 customers were left without adequate breakdown insurance. The South Wales-based firm is currently in liquidation.

An investigation revealed that Panesar had also misappropriated funds from Motorcare Warranties Limited (Warranties), another insurance brokerage.

Tracey McDermott, the FSA’s director of enforcement and financial crime, said: “Harbinder Panesar has left a trail of destruction behind him: misappropriating funds from his businesses, acting recklessly towards consumers, and taking two firms into liquidation.

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“So egregious were his actions that even though he has only recently been discharged from bankruptcy, we will not reduce the fine because of financial hardship.

“Such dishonesty and recklessness not only posed a risk to consumers, but also to other market participants and to confidence in the financial system as a whole.

“Panesar is learning the hard way that we will not stand for this kind of activity.”