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FCA fines and bans insurance broker for stealing client premiums

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  • 10/09/2015
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FCA fines and bans insurance broker for stealing client premiums
The Financial Conduct Authority (FCA) has fined insurance broker Ralph Whittington £42,111 and banned him from performing carrying out controlled functions.

The FCA has also withdrawn Whittington’s approvals to perform controlled functions at Savesure, an insurance intermediary of which he was a shareholder.

In January 2014 Whittington informed the FCA that Savesure had ceased trading and in July 2014 the firm entered voluntary liquidation.

Between March 2012 and December 2013, 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 stolen funds were used to fund Savesure’s business expenses however some of the money was used to repay funds Whittington paid into Savesure from his personal finances or from funds raised through creditors.

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 Whittington failed to act with honesty and integrity by knowingly causing Savesure to misappropriate insurance premiums paid to Savesure by its clients.

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

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