Broker who tried to overcharge client is banned

An insurance broker who tried to overcharge a client by £89,000 has been banned from acting as an FSA approved person for at least two years.

Paul Cable was founder of Media and Entertainment Insurance Services, which was a small insurance broker specialising in arranging insurance for the entertainment industry, including advertising and television commercials. Cable was the firm’s only FSA approved person.

In January 2007 Cable was asked to arrange two insurance contracts for a client. The contracts were for an area of business that was outside Cable’s usual area of expertise.

He significantly inflated the cost of the insurance premiums and falsified two documents in a deliberate attempt to overcharge the client. The client only learnt of the true cost of the premiums after making their own inquiries.

The FSA accepted that this was an isolated incident and that Cable made a full and frank admission of his misconduct.

Tom Spender, FSA head of retail enforcement, said: “Insurance brokers have a responsibility to provide accurate information to their clients and treat them fairly.

“Attempting to overcharge even one client is completely unacceptable behaviour.

“Cable’s actions call into question his integrity and show that he is not a fit and proper person. The action we have taken shows that this conduct will not be tolerated by the FSA.”

The FSA has also cancelled Media and Entertainment Insurance Services permission to undertake any regulated activities.