The Financial Services Authority (FSA) of UK has canceled Media and Entertainment Insurance Services' permission to undertake any regulated activities, after its director was found guilty of attempting to attempting to overcharge a client.
FSA has banned Paul Cable, director of Media and Entertainment Insurance Services, from acting as an FSA approved person for at least two years for attempting to overcharge a client by £89,000.
In January 2007 Cable, on behalf of Media and Entertainment Insurance Services, was asked to arrange two insurance contracts for a client. The contracts were for an area of business that was outside Cable’s usual area of expertise.
According to FSA, Cable significantly inflated the cost of the insurance premiums and falsified two documents in a deliberate attempt to overcharge the client. The client only learnt of the true cost of the premiums after making their own enquiries.
FSA head of retail enforcement Tom Spender said, insurance brokers have a responsibility to provide accurate information to their clients and treat them fairly.
Attempting to overcharge even one client is completely unacceptable behavior. Cable’s actions call into question his integrity and show that he is not a fit and proper person. The action we have taken shows that this conduct will not be tolerated by the FSA, Spender said.