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FSA/PN/087/2006
4 September 2006

The Financial Services Authority (FSA) today stripped Walsall Bridge Insurance Consultants Limited of its permission to carry on regulated activities after it found the firm had failed to pass on received client premiums to insurers, leaving clients uninsured, and used the money to run the day-to-day activities of its business.

As a result of the investigation the FSA has also today banned the company's sole director, Geoffrey Thomas Robbins, from conducting any further regulated business after finding him not fit and proper to work in the general insurance industry.

The FSA found that since March 2005 due to financial difficulties Walsall had failed to arrange insurance policies and to pass over the premiums of its clients to the insurers and intermediaries. This resulted in 19 clients being left without insurance and one client incurring losses which were uninsured. In addition Walsall had charged at least 6 clients inflated premiums for insurance. As a result premiums owed by Walsall to insurers currently exceed £140,000.

Director Geoffrey Thomas Robbins also admitted to providing clients with misleading information about their policies and falsely obtaining loans to meet the cost of insurance premiums but failing to use it for this purpose.

Margaret Cole, Director of Enforcement at the FSA said:

"The FSA will not tolerate insurance brokers who put customers at risk by failing to ensure their clients have appropriate cover. To take client premiums and then fail to arrange insurance is not acceptable practice. We will take enforcement action to stop any behaviour that leads to consumer detriment."

The case is viewed as particularly serious by the FSA as Walsall failed to inform the regulator about Walsall's financial difficulties when it knew, or ought to have known, that it did not have adequate resources.

Following a supervisory visit to Walsall in March 2006 the FSA was informed that Walsall was insolvent and Mr Robbins ceased trading with immediate effect. Once the FSA was made aware of this it issued a consumer alert on its web site warning consumers that they may be uncovered and urged any consumer with a concern to the Financial Services Compensation Scheme (FSCS).

Notes for editors

1. The Final Notice for Walsall Bridge Insurance Consultants Limited can be found on the FSA website.
2. The Final Notice for Geoffrey Thomas Robbins can be found on the FSA website.
3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
4. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.