Regulation  

Former Swinton directors fined and banned by FCA

Three former Swinton directors have been fined and banned after insurance add-ons were mis-sold, the FCA has said.

In a final notice issued by the City regulator, it said it had banned Peter Halpin, Anthony Clare and Nicholas Bowyer from performing significant influence functions at financial services firms.

It found a sales-focused culture at Swinton was encouraged by Mr Clare and Mr Bowyer, driving a business strategy that was designed to boost the firm’s profits in 2011.

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Swinton’s participating directors – including the three now banned – stood to gain a bonus of approximately £90m under the directors share scheme if operating profits reached £110m in 2011.

According to the notice, Mr Halpin was fined £412,700 and banned from acting as a chief executive of an FCA authorised firm.

Mr Clare was fined £208,600 and banned from holding a position of significant influence in an FCA authorised firm.

Mr Bowyer was fined £306,700 and banned from performing any significant influence function at an FCA authorised firm.

Tracey McDermott, director of enforcement and financial crime at the FCA, said: “A culture was allowed to develop within Swinton that pushed for high sales and increased profit without regard to the impact on the firm’s customers.

“We expect firms to put customers at the heart of their business. These three directors should have recognised the risk to customers and redressed the balance so that the drive to maximise profits did not jeopardise the fair treatment of customers.

“Those with significant influence within firms are responsible for setting the tone and the culture; they set the example that others will follow.”