Broker banned for using client cash
06 September 2010An insurance broker who used his customers' money to pay staff bonuses and buy a luxury car has been given a lifetime ban.
David Marriott, the former chief executive of Target Underwriting and Professional Insurance Select, failed to segregate and protect money his customers handed over for insurance premiums.
Instead, Mr Marriott, of Market Harborough in Leicestershire, used the money to cover the costs of his failing businesses, as well as give pay rises and bonuses to members of staff.
He also used the cash to buy a £35,000 car for himself, and another vehicle worth around £27,500 for a director.
In total, he is thought to have misused £570,841 of customers' money.
The Financial Services Authority has imposed a lifetime ban on Mr Marriott for his actions.
Under the regulator's rules, firms are required to keep customers' money separate from the company's, in a segregated account with trust status. The rule aims to protect client money if a firm becomes insolvent.
The FSA said Mr Marriott also provided false and misleading information in his applications for authorisation when it took over regulating the sector.
In order to cover up his misuse of clients' money, he claimed that the cash was safe and that a client money audit had been conducted at both firms.
Copyright Press Association 2010
