The Financial Services Authority, (FSA) today banned David Holland, sole director of the UK pet insurance company Petsure Limited, for misusing customers' assets. This is the first time the FSA has taken action against a pet insurance intermediary.

From September 2005 to May 2007, Mr Holland marketed and sold pet insurance policies to customers through Petsure Limited, an agency of Flett Sinclair Insurance Brokers Limited, (FSIB).

During that period Mr Holland placed premiums amounting to at least £162,000 into his own personal bank account and used this money for personal expenditure.

He also:

failed to hold premiums in a designated account for client premiums and

failed to prepare and submit monthly returns together with payment of premiums to the insurer.

Margaret Cole, FSA Director of Enforcement, said:

"Using premiums received from clients for personal use in this way is inexcusable. The FSA will take action against firms and individuals that misuse client funds in this way - where an intermediary receives money from clients on behalf of an insurer, it must pass this money on promptly."

Despite not receiving premiums from Mr Holland, the insurer has met claims made by policyholders of pet policies renewed by Mr Holland between 27 September 2005 and 6 February 2007.

Submitted by: Steve O'Malley      

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