The UK Financial Services Authority (FSA) has fined George McGregor, former Finance Director at Royal Liver Assurance Limited (RLA), for entering into contracts without authorisation on behalf of RLA.
According to FSA, McGregor’s behaviour resulted in a fine of £1,000,000 but the amount was reduced to £109,000 because of serious financial hardship, however, he has been also been banned from performing any regulated related activity in the financial services industry.
McGregor has been accused of entering into contracts on behalf of RLA between May 2009 and November 2009 with two companies that were controlled by a former employee of RLA.
The former employee’s bonus was being negotiated by McGregor and to conceal the level of bonus, which in normal case would not be approved by RLA’s Board, he entered into the two contracts.
McGregor has been further alleged of forgery relating to these contracts, which resulted in RLA paying at least £3.6m to the two companies and incurring a possible contractual liability of up to £18m.
FSA has alleged that McGregor abused his position in RLA, withheld information from RLA and had been instrumental in implementing circumvented systems and controls for approving contracts.
Acting director of enforcement and financial crime Tracey McDermott said McGregor abused his position of responsibility and engaged in a dishonest, deliberate and sustained course of misconduct.
"McGregor failed to act with integrity and is not a fit and proper person to work in the financial services industry," McDermott added.
McGregor has agreed for an early settlement that resulted in qualifying for a 30% discount on the financial penalty.