The Financial Services Authority (FSA) has banned two British insurance brokers for illegal trading, saying their actions “displayed a serious lack of integrity and honesty.”
Stephen Fryett and Richard Baines joined forces to sell insurance policies through Insureyourshop.com which were guaranteed by CIC Costa Rica and CIC Greece, neither of which is permitted to underwrite insurance policies in the UK. Almost 1,800 shops, including Chinese takeaways, kebab shops and fish and chip shops signed up for the illegal insurance believing it to be genuine.
FSA director of enforcement Margaret Cole said: “Mr Fryett and Mr Baines’ actions have put a large number of UK businesses at serious insurance risk as those businesses do not have employers liability insurance .”
Mr Fryett appealed against his ban at the Financial Services and Markets Tribunal but it was upheld. The Tribunal said that Mr Fryett posed a serious risk to consumers and to confidence in the financial system.