The Financial Conduct Authority (FCA) has banned former director Leigh Mackey from working in financial services and fined him £1,102,879 for financial misconduct and misleading regulatory authorities.
Mackey previously had sole management control of Inspire Insurance Services Ltd, an insurance broker for the construction sector. He is accused of misappropriating funds owed to insurers to support company operations and pay for personal expenses, according to a media release.
The news release noted that an FCA-conducted investigation found that between September 2011 and December 2019, Mackey redirected funds intended for insurers to cover Inspire Insurance Services’ operating expenses. The construction-sector insurance broker, now in liquidation, is reported to owe over £660,000 to insurers, according to Mackey’s own admission. However, estimates from the company’s liquidator place the shortfall significantly higher, at more than £2.2 million.
The FCA claimed that Mackey had failed to conduct mandatory client asset audits over a period of four years, despite regulatory reports submitted by Inspire stating that these audits were completed. By neglecting these procedures, Mackey was found to have contravened multiple FCA principles, specifically Statements of Principle 1 and 4 and Conduct of Conduct Sourcebook (COCON) Rules 1 and 3.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, condemned Mackey’s actions, stating: “Mr Mackey helped himself to insurer funds to prop up his business and personal finances. This fine and ban shows how seriously we take individuals who abuse their position for personal gain and risk damaging the integrity of the UK’s financial system.”
Mackey’s penalty comprises two elements: a disgorgement of £968,479 and an additional punitive amount of £134,400. Alongside the fine, Mackey has been permanently prohibited from holding any position within regulated financial services in the UK, as the FCA ruled that he lacks the “honesty and integrity” required for the sector and poses a risk to consumers and financial stability.
Inspire Insurance Services was placed into liquidation on Nov. 6, 2020, following regulatory intervention by the FCA, and remains under liquidation.
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