The FSA banned Stephen Allen, a director of insurance broker, Fabien Risk Services Ltd, for failing in his duties as a director of a regulated firm. The ban means that Allen is prohibited from holding any management role in the UK financial services industry and any role that requires FSA approval.

The action follows an investigation by the FSA that also resulted in the banning in 2007 of Allen’s co-director Shane Garvey and Fabien office manager Lee Goddard. In late 2005 when Fabien was placed in creditors’ voluntary liquidation, the firm had suffered £700,000 in losses, of which £470,000 was owed to insurers, brokers and underwriters.

An FSA investigation revealed that Garvey authorized the withdrawal of client funds and Goddard complied with instructions to use the money to keep Fabien trading without Allen’s knowledge. The FSA therefore found that Garvey and Goddard lacked integrity.

Allen accepted that his lack of knowledge of Fabien’s bank accounts was a neglect of his duties and that he had failed in his duty as a director. As a result, it was concluded that, although Allen did not lack honesty or integrity, he lacked the competence to run a regulated firm.