UK FCA fines Swinton’s former executives over mis-selling add-on insurance policies
The UK’s Financial Conduct Authority (FCA) has imposed a £928,000 fine on three former senior executives of Swinton Group for mis-selling add-on insurance policies.
The charged members include former chief executive Peter Halpin, former finance director Anthony Clare and former marketing director Nicholas Bowyer.
The fine follows previous enforcement action taken against the company in 2013, under which it was fined £7.4m for adopting an aggressive sales strategy, which resulted in mis-sales of monthly add-on insurance policies.
FCA enforcement and financial crime director Tracey McDermott 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."
According to FCA, the sales focused culture in the company was encouraged by Clare and Bowyer, which allowed the firm to increase its profits in 2011.
Halpin was fined £412,700, as well as banned from acting as a CEO of an FCA authorised firm due to lack of competence in his CEO role.
Clare has been fined £208,600 and also banned from holding a position of significant influence in an FCA authorised firm, while Bowyer was fined £306,700 and banned from performing any significant influence function at an FCA authorised firm.
The company was also charged by the authority in 2009, for failures in its sales of PPI.