Insurance brokers banned over customers' 'significant losses'

The Financial Services Authority has banned the men from working in the financial services sector Photo: Peter Payne

Andrew Porter, the owner of Porter Insurance, was found to have under-insured clients and used the surplus money for his own personal benefit, while Alexander Brincat, owner of specialist insurer Wise Owl, failed to ensure the company had sufficient money to pay premiums to customers.

An investigation of Mr Porter also found he had falsified documents to mislead customers and other insurance companies as well as knowingly selling inappropriate policies.

The Financial Services Authority (FSA) has banned the men from working in the financial services sector and had withdrawn authorisation for their respective businesses.

Tracey McDermott, acting head of enforcement and financial crime at the FSA, said Mr Porter had been "dishonest" and had deliberately failed his clients. "He provided them with policies he knew were potentially worthless and would not pay out if they suffered an accident," she said.

Ms McDermott added Mr Brincat had demonstrated "incompetence" in the running of his business.

"We will continue to take action against individuals who, either through incompetence or fraudulent activity, allow their firms to cause such losses to other market participants."