The Financial Conduct Authority has banned company director Leigh Mackey from working in financial services and fined him £1,102,879 for misleading the FCA and misusing funds due to insurers.

Between September 2011 and December 2019, Mr Mackey had sole management control of Inspire Insurance Services, an insurance broker for the construction sector.

The regulator said he used funds which he should have handed to insurers to support Inspire’s operating costs and to pay for personal living expenses.

He accepted that, due to his actions, Inspire owes insurers more than £660,000. Estimates by Inspire’s liquidator are higher, suggesting a shortfall of more than £2.2m.

The FCA also said Mr Mackey lied to the regulator, by submitting regulatory reports stating the firm had carried out required client asset audits even though it hadn’t.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA said: “Mr Mackey helped himself to insurer funds to prop up his business and personal finances. This fine and ban shows how seriously we take individuals who abuse their position for personal gain and risk damaging the integrity of the UK’s financial system.”

Mr Mackey’s penalty was comprised of two elements – disgorgement of £968,479 and a penal element of £134,400. Inspire was placed into liquidation by Mr Mackey on 6 November 2020.