FCA fines and bans Director

The FCA has fined and permanently banned Leigh Mackey, former director of Inspire Insurance Services Ltd (Inspire), for serious misconduct during his tenure at the company. Inspire, which was an insurance brokerage for the construction sector, has been in liquidation since 2020.

Between the 12th of September 2011 and the 8th of December 2019, Mr Hackey held sole management control of Inspire Insurance Services Ltd (Inspire). During this time, Mr Mackey diverted funds that were supposed to be allocated to insurers to cover Inspire’s operational expenses and to his own personal living costs. Due to Mr Mackey’s actions, of which Mr Mackey has accepted responsibility, Inspire owes insurers over £660,000. However, estimates by Inspire’s liquidator suggests a shortfall of over £2.2 million.

Additionally, over a four-year period, Inspire submitted false regulatory reports to the FCA and claimed to have conducted the required client asset audits; Mr Mackey has since admitted these audits were never carried out.

As a result, the FCA has imposed a financial penalty of £1,102,879 on Mr Mackey for breaching regulatory standards. This amount includes:

• Disgorgement: £968,479, representing the financial benefit that Mr Mackey gained through his actions.
• Penalty Element: £134,400 as a punitive measure.

The FCA has also declared Mr Mackey unfit to work in the financial services industry, citing a lack of honesty and integrity. He is now prohibited from performing any role in regulated activities within the UK financial sector.

Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, said:
“Mr Mackey helped himself to insurer funds to prop up his business and personal finances. This fine and ban shows how seriously we take individuals who abuse their position for personal gain and risk damaging the integrity of the UK’s financial system.”

As previously mentioned, Inspire has been in liquidation since the 6th of November 2020 following FCA intervention, and investigations into its financial shortfalls are ongoing. This case underscores the FCA’s commitment to upholding high standards in the financial services sector and acting against individuals who undermine trust in the system.