FSA refers adviser case to Tribunal

FSA refers adviser case to Tribunal

The FSA banned Derek Wright of Moorgate Insurance Agencies, from all regulated activity, on honesty, integrity and competence grounds.

The FSA said that it believed Wright was unwilling to comply with its approved person regime and provided misleading information to the FSA.

It said that Wright arranged for his wife to take on the FSA approved roles while he ran the insurance broker firm.

The regulator said that his wife had no involvement in the running of the business at Moorgate and did not make use of her function as a director properly. This meant that Wright was able to run the firm unsupervised and unchallenged by his wife.

Wright had previously been disciplined by Lloyds of London in 2001 and the FSA said that this would have been a highly relevant factor in its assessment of his fitness if he applied for Approved Person status.

The FSA also revealed that Wright failed to be open with the FSA about his true role in running the business and although he effectively acted as a director of the firm, he produced poor quality regulatory returns and failed to ensure the firm had adequate resources.

Lloyds faces £200m loss

The Scottish based developer with offices in London, Sheffield and Edinburgh, owns office, industrial and retail sites across the UK.

HBOS pumped about £500m of loans into the company during the property boom but the portfolio is now worth about £300m, leaving the bank facing a £200m loss.

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