Professional negligence brokers fined

Published on 14 Jun 2010 under category: legal

Two insurance brokers have been fined by the finance industry watchdog for being negligent.

The Financial Services Authority (FSA) said that the two men risked their clients' assets and investments.

In the separate cases, Adrian Shillaker of Griffiths McAllister was accused of transferring client money to use for business expenses.

He also violated FSA rules for the protection of client funds from other business accounts.

Delwyn Way, of the firm Shield Insurance Consultancy, was given a fine of £77,957 by the watchdog for not passing on insurance premiums for his clients.

The organisation has created a separate unit to deal with the safe handling of clients' money and assets.

On the two cases, Margaret Cole, the FSA director of enforcement, commented: "Firms must take their responsibilities to protect clients' money and assets very seriously.

"It is simply unacceptable that these two individuals have failed to ensure their clients have the appropriate protection in place and as a result we have taken firm action."

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