Whilst the sole director of Media and Entertainment Insurance Service Limited (M&E), Cable misled a client by telling them that he had arranged insurance policies for them when no such cover had been put in place.
As a result, Cable exposed the client to risk and retained premiums totalling £17,452.56.
The size of the fine reflects the fact Cable had been repeatedly dishonest whilst already subject to disciplinary proceedings for a lack of integrity towards another client by the FCA’s predecessor, the Financial Services Authority (FSA). The FCA has also banned Cable from working in the financial services industry in future.
In June 2009, the FSA informed Cable that it had decided to ban him from working in certain roles in financial services. Following this decision, Cable continued to act as an insurance broker, a role not covered by the ban. During this time, Cable misled a client into believing he had taken out four insurance policies on their behalf and collected premiums without arranging the policies.
Tracey McDermott, the FCA’s director of enforcement and financial crime, said:
"Mr Cable flagrantly disregarded his obligations to his client and to the regulator. At the same time as arguing previous misconduct the FSA had identified was a one off error, he was systematically misleading another client and exposing them to considerable risk. His conduct demonstrates a complete lack of integrity which has no place in the financial services industry."
Since launching in April 2013, the FCA has levied fines of over £1.1m against four individuals.
Notes to Editors
- The final notice for Paul Cable[1].
- Original consumer warning issued by the FSA[2].
- On the 1 April 2013 the Financial Conduct Authority (FCA) became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- You can find more information about the FCA, as well as how it is different to the PRA.