FCA fines director of collapsed insurance broker £1.1m over misusing funds

The Financial Conduct Authority (FCA) has banned and fined a director of an insurance broker for misleading the regulator and misusing funds.

Leigh Mackey was a director, and sole management controller of Inspire Insurance Services (Inspire), an insurance broker for the construction sector.

Inspire was placed into liquidation by Mackey in November 2020.

It was revealed today that over a period of more than four years he had used premiums held by Inspire, which Inspire should have paid to the insurers, to fund the operating costs of Inspire and to pay his personal living expenses.

The amounts estimated as being owed to insurers by Inspire vary. By his own admission, Mackey accepted that, as a result of his actions, Inspire owes insurers over £660,000.

However, the estimates of the amounts owing to insurers provided by Inspire’s liquidator to the FCA are significantly higher and suggest a shortfall of over £2.2m.

The regulator stated that Mackey was not truthful.

Inspire submitted regulatory reports over four years stating it had carried out required client asset audits, Mackey admitted it failed to carry these out.

As a result of these findings, the FCA has fined Mackey £1.1m.

Additionally, the FCA stated that he “is not a fit and proper person as he lacks honesty and integrity and poses a risk to consumers”, resulting in a ban from working in financial services.

It was noted in the final notice that Mackey has recently been made bankrupt and as such realisation of assets is currently uncertain.

Commenting on the decision, Therese Chambers, joint executive director of enforcement and market oversight at the FCA said: “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,” she added.