FSA Fines and Bans Insurance Broker for Misappropriating Insurance Premia

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On July 24, the FSA published the final notice issued to Stephen Goodwin, a commercial insurance broker at S Goodwin & M Best, which has now ceased trading. Final Notice.

The FSA found that between November 2008 and November 2010, when the firm was in financial difficulties, Mr. Goodwin and his partner (now deceased) retained a number of insurance premia from clients which they did not pay to insurers and intermediaries. Three clients suffered financial loss as a result of this. One client discovered they were not insured, and two clients paid the same premium twice to ensure their policies remained in force.

Mr. Goodwin was fined £471,846 for falling short of the required standards for approved persons in respect of honesty and integrity. This was made up of a disgorgement payment of £303,846 and a punitive payment of £168,000. This is one of the largest fines levied on an individual for insurance fraud, and sends out a clear message regarding the FSA’s credible deterrence policy. Mr. Goodwin was also banned from performing any function relating to a regulated activity carried on by an authorised or exempt person or exempt professional firm.

 

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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