The UK Financial Conduct Authority (FCA) has banned Martin Sarl from working in the financial services industry and fined him £5,021 for acting without honesty and integrity.
Between 7 November 2017 and 24 October 2019, Mr Sarl, who was the sole director at Perry Prowse (Insurance Consultants) Ltd, failed to pass clients’ premiums to insurers, meaning that some customers were left uninsured without their knowledge.
The FCA’s investigation uncovered that Mr Sarl used money from the firm’s client account to pay both his personal debt, and that of the firm. That was not allowed under the FCA’s Client Money rules, and these funds should have been kept separate.
As a result, there was not enough money to transfer the premiums – that his customers had paid to him – to insurers, leaving customers without cover and at risk of having their home, and car insurance claims rejected.
When he was asked questions by customers about their insurance, Mr Sarl hid the truth, even going as far as blaming a false ‘IT glitch’. In at least one instance, a customer had a claim rejected because they did not have cover in place.
On 13 September 2019, the FCA took action to vary Perry Prowse’s permission to remove all of its regulated activities with immediate effect. On 16 January 2020, the firm entered into liquidation.
