Insurance Broker Failed to Pay Insurers, Banned by the FCA

Latest case report from the FCA. So were the clients in the construction sector actually covered?

The Financial Conduct Authority (FCA) has banned Leigh Mackey from working in financial services and fined him £1,102,879 for misleading the FCA and misusing funds due to insurers.

Between 12 September 2011 and 8 December 2019, Mr Mackey had sole management control of Inspire Insurance Services Ltd (Inspire), an insurance broker for the construction sector.

Mr Mackey used funds due to insurers to support Inspire’s operating costs and to pay for personal living expenses instead of paying insurers.

By his own admission, Mr Mackey accepts that, due to his actions, Inspire owes insurers over £660,000. Estimates by Inspire’s liquidator are significantly higher, suggesting a shortfall of over £2.2m.

Mr Mackey was not truthful with the FCA. Inspire submitted regulatory reports over 4 years stating it had carried out required client asset audits. Mr Mackey admits it failed to carry these out.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA said:

‘Mr 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.’