Stephen Goodwin, a former partner at Bury, Lancashire based Goodwin Best has been fined £471,846 by the Financial Services Authority and prohibited from working in regulated financial services. According to the FSA, between 2008 and 2010, Goodwin and his business partner (who is now deceased) paid some of the money they took as insurance premiums into their business account, rather than to the intermediary or insurer to arrange the policy. A total of £303,846 was misappropriated in this way.

At least three clients are believe to have suffered financial loss are now in contact with the Financial Services Compensation Scheme. One client had a claim denied and the two others paid their premium again to ensure cover.

Goodwin was declared bankrupt in April 2011 as a result of debts incurred by his firm, which ceased trading on the 1st November 2010. His bankruptcy was discharged in April this year (2012).

The FSA’s acting director of enforcement and financial crime, Tracey McDermott, stated “This is a significant fine to reflect serious failings. Goodwin knowingly diverted money intended to pay for contracts of insurance into his own business to keep it afloat. Although the diversion of premiums did not lead to the majority of clients being left uninsured, this does not detract from the seriousness of the misconduct. These are dishonest breaches; Goodwin posed a risk to consumers and the financial system more widely and now he is paying a very heavy price.”

Source: http://www.insurancetimes.co.uk/story.aspx?source=itNewsBreakingNow&storycode=1397769