The Financial Services Authority (FSA) has prohibited Graham Darby, Director of insurance broker Ambrose Darby, for failing to control the business of the firm adequately. The order bans Darby performing significant influence functions at any authorised financial firm.
The FSA found that Darby, who was diagnosed in July 2008 with a severe medical condition, did not conduct client money reconciliations as required and did not have a full understanding of the firm’s responsibilities regarding the handling of client money.
The FSA also petitioned for the winding up of Ambrose Darby on the basis that Darby, as a result of his illness, was not able to resolve the client money issues at the firm and wind up the company himself in an orderly fashion and there was no other officer of the firm who was able to do this. The winding up order was granted on 10 March 2009. It is the first time the FSA has exercised its insolvency powers under Section 367 of the Financial Services and Markets Act 2000 in relation to a regulated small retail firm.
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