07 Jul FSA Bans Two Brokers Over Failure to Treat Customers Fairly

The Financial Services Authority (FSA) have banned a pair of insurance brokers after both were found to have mistreated their customers. Andrew Porter, of Porter Insurance, was found to have falsified documents to mislead clients, betraying their trust by under-insuring them and retaining the extra money for his own gain. In doing so he also left a number of clients and companies at risk of suffering serious financial loss after leading them into paying for cover which was either unsuitable or nor required for their business needs, leading them to being under-insured when it came to cover they actually needed. The FSA also found that he falsified documentation to keep the charade going, stating "Andrew Porter deliberately underinsured clients, many of whom were involved in high risk trades. He provided them with policies he knew were potentially worthless and would not payout if they suffered an accident,' said Tracey McDermott, FSA acting director of enforcement and financial crime. 'This is not only a dishonest and deliberate failing in his responsibility as an approved person, but a complete breach of trust with his clients." The regulator have also banned Alexander Brincat after finding that he failed to monitor the high cancellation rate of life insurance policies that were being sold through his company, Wise Owl. He also failed in telling insurance providers that his company offered free life cover to customers as part of a sales strategy, despite the fact that his company did not have sufficient premiums due to customers who took up the offer. The FSA commented "Alexander Brincat's incompetence at Wise Owl posed a risk to other market participants and to confidence in the financial system. In order to remove this risk Brincat has been banned."