FSA bans insurance agents for illegal trading

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FSA bans insurance agents for illegal trading

Fri 21st Nov 2008

The Financial Services Authority (FSA) has banned two UK insurance brokers for illegal trading, saying their actions "displayed a serious lack of integrity and honesty."

Stephen Fryett and Richard Baines teamed up to sell insurance policies through Insureyourshop.com which were guaranteed by CIC Costa Rica and CIC Greece, neither of which is allowed to underwrite insurance policies in the UK.

Around 1,800 shops, including Chinese takeaways, kebab shops and fish and chip shops, signed up for the illegal insurance, thinking it was genuine.

FSA director of enforcement Margaret Cole said that Mr Fryett and Mr Baines' actions "put a large number of UK businesses at serious insurance risk" as those businesses did not have employer's liability insurance.

Mr Fryett appealed against his ban at the Financial Services and Markets Tribunal but it was upheld.

The Tribunal said: "Mr Fryett does pose a serious risk to consumers and to confidence in the financial system."

Last week a study by Experian revealed that fraud was on the rise in the car finance industry as well.

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