FSA bans three directors for misusing client money
The Financial Services Authority (FSA) has banned three directors of a London-based insurance business, BPS Insure, for failing to inform the FSA that BPS had a deficit of approximately £3m in its client account and had misused client money.
Robert James, chief executive officer, and directors Stuart Lawton and Paul Adams all worked at BPS until it went into administration.
Months before, during a routine visit, the FSA discovered that all three had continually failed to admit to the deficit from the time when they originally applied for authorisation until the date of the visit. They had also used client money in January and February 2005 to pay BPS’ general expenses, further increasing the deficit.
The FSA established that all
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