The FCA has banned Martin Sarl from working in the financial services industry and fined him £5,021 for acting without honesty and integrity.
Between 7 November 2017 and 24 October 2019, Mr Sarl, who was the sole director at Perry Prowse (Insurance Consultants) Ltd, failed to pass clients’ premiums to insurers, meaning that some customers were left uninsured without their knowledge.
The FCA's investigation uncovered that Mr Sarl used money from the firm’s client account to pay both his personal debt, and that of the firm. That was not allowed under the FCA’s Client Money rules, and these funds should have been kept separate.
As a result, there was not enough money to transfer the premiums - that his customers had paid to him - to insurers, leaving customers without cover and at risk of having their home, and car insurance claims rejected.
When he was asked questions by customers about their insurance, Mr Sarl hid the truth, even going as far as blaming a false 'IT glitch'. In at least one instance, a customer had a claim rejected because they did not have cover in place.
Therese Chambers, Joint head of Enforcement and Market oversight at the FCA said:
'Mr Sarl's customers trusted him to keep their money safe and to secure the insurance cover they needed. Instead, he helped himself to prop up his business and personal finances. He compounded this by lying to his customers.
'This left many people at risk of being unable to make a claim should they have needed to. It is right that Mr Sarl should be banned from the industry'.