Director banned and fined £1.1m after misusing funds

The Financial Conduct Authority (FCA) has banned a Coventry director and fined him £1.1m for misleading the FCA and misusing funds due to insurers.

Leigh Mackey, the director of Inspire Insurance Services, was an insurance broker for the construction sector.

Between 12 September 2011 and 8 December 2019, Mackey used funds due to insurers to support Inspire’s operating costs and to pay for personal living expenses instead of paying insurers.

The FCA said Mackey has admitted that Inspire owes insurers over £660k. Estimates by Inspire’s liquidator are significantly higher, suggesting a shortfall of over £2.2m.

It alleges that Mackey was not truthful with the FCA as Inspire submitted regulatory reports for four years stating it had carried out required client asset audits when it failed to carry these out.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA said: “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.”