Between 7 November 2017 and 24 October 2019, Mr. Sarl, the sole director of Perry Prowse (Insurance Consultants) Ltd, failed to forward clients’ premiums to insurers, leaving some customers unknowingly uninsured.

An FCA investigation revealed that Mr. Sarl had improperly used funds from the firm’s client account to pay off personal and business debts. This practice violated the FCA’s Client Money rules, which require that client funds be kept separate from the company’s finances.

As a result, there was insufficient money available to transfer the premiums that customers had paid to insurers, exposing them to the risk of having their home and car insurance claims denied.

When questioned by customers about their insurance coverage, Mr. Sarl concealed the truth, even going so far as to blame a fictitious ‘IT glitch.’ In at least one instance, a customer’s claim was rejected because they were unknowingly without coverage.

Therese Chambers, Joint Head of Enforcement and Market Oversight at the FCA, stated:

“Mr. Sarl’s customers trusted him to safeguard their money and secure the necessary insurance coverage. Instead, he misappropriated these funds to support his business and personal finances, and compounded the issue by deceiving his customers.

“This left many individuals vulnerable, unable to make claims if they needed to. It is only fitting that Mr. Sarl be banned from the industry.”