FSA bans two directors

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The Financial Services Authority (FSA) has banned two directors of an insurance broker after the firm fell foul of compliance rules.

According to the FSA, Roger Muse and his son Daniel are banned from significant influence functions at organisations carrying out regulated financial activities after they failed to ensure their organisation FHI (Northern) Limited complied with client money rules.

Margaret Cole, the FSA's director of enforcement, said the action taken sends out a clear message that prohibitions will be used to protect customers when senior management fail to meet their regulatory obligations.

"Both of these directors failed to discharge their duties as approved persons to ensure that their firm complied with the FSA's client money rules," she added.

Although no clients were affected, the FSA will not wait for customers' money to be lost before taking action, Ms Cole continued.

The FSA recently banned mortgage and insurance broker New Forest Mortgage Company Limited and its director Peter King for submitting fraudulent life assurance policies.

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