Two broking bosses have been given warning notices by the Financial Conduct Authority relating to management issues and client money handling.
The first unnamed broker, a chief executive at an unnamed firm, was warned by the regulator for failing to act with due diligence in handling client money.
The FCA said the broker used inaccurate client money calculations for the firm, used customer premiums for its own business costs, failed to ensure money transferred from its client premium accounts were due to the firm in commissions earned, and did not take necessary steps to understand the regulatory environment.
The second unnamed broker, a director at an unnamed firm, was warned by the FCA for failing to manage the firm's business with due skill and diligence.
The regulator said the director did not take adequate steps to remain informed about the business and financial affairs of the firm, rather relying solely on verbal assurances.
The director also failed to question those assurances. The director also paid the insurance premiums of another entity into a client premium bank account of the firm and received personal payments from the account.
After a warning notice is issued the individuals have the opportunity to present to a regulatory decisions committee which then decides on further action. The individual can refer a decision to the upper tribunal which would decide on action to be taken by the FCA.
