FCA bans and fines ex-Swinton bosses

Three former executives at High Street insurer Swinton were today fined and banned from taking senior roles in the financial services industry.

Ex-boss Peter Halpin, Anthony Clare, former finance director, and Nicholas Bowyer, former marketing director, have been penalised by the Financial Conduct Authority for their role in a mis-selling scandal at the company. They were fined a total of £928,000. Swinton was fined £7.4 million last year.

“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,” Tracey McDermott, director of enforcement and financial crime at the FCA, said.

“Those with significant influence within firms are responsible for setting the tone and the culture; they set the example that others will follow. The enforcement action should serve as a timely reminder to those at the very top of firms that the FCA is determined to hold individuals to account where they fall short of the standard we require.”

The fines and bans are linked to the sale of add-on products and payment protection insurance. According to the regulator, Swinton’s directors - including Halpin, Clare and Bowyer- were on course to share a of about £90 million if its operating profits reached £110 million in 2011.

All three men settled at an early stage of the FCA’s investigation meaning they qualified for a 30% discount on their fines.

Halpin said: “I sincerely regret any possible unintended detriment suffered by customers. I acted in good faith at all times and it is of some significant comfort that the regulator did not impugn my integrity, nor find that my conduct was improperly motivated by incentive arrangements”.