Insurance broker fined and banned for misuse of insurer funds

The FCA has fined the sole manager of Inspire Insurance Services Ltd over £1.1m and banned him from the financial services industry. Leigh Mackey had sole management control of the construction sector insurance broker (which has been in liquidation since 2020), and used funds due to insurers to pay the firm’s operating costs and his personal living expenses. He also caused the firm to submit regulatory reports over 4 years confirming the firm had carried out the required client asset audits when this had in fact not been done.

The FCA said Mr Mackey’s estimate of moneys owed to insurers is over £660.000, while the liquidators’ estimate is over £2.2m. Mr Mackey’s penalty included disgorgement of profits of nearly £1m.