On 8 July, the Financial Services Authority (FSA) banned Timothy Higgins, Clifford Felstead and Ralph Brunswick (who were found guilty in June 2008 of conspiring to defraud Markel, QBE and Amalfi Underwriting) from working in regulated financial services. The FSA delivered the prohibition because the behaviour of the individuals posed a severe risk to confidence in the financial markets and to assist in reducing financial crime.

Higgins was a director and Felstead was an employee of Security Guarantee Consultants (SGC) who held binding authorities with Markel and QBE (through its agent Amalfi) to write surety bonds. SGC exceeded its authorised limits under the binding authority and made a secret profit by withholding over £2m that should have been paid to the insurers. In addition, when audited by the insurers, SGC provided false surety bonds that fell within the authorised limits of the binding authority. Brunswick, who worked for Templeton Insurance Company Limited (based in the Isle of Man), provided SGC with false surety bonds to cover the difference between the binding authority limits and the actual bonds issued, so it looked like the excess cover would be picked up by Templeton (not Markel or QBE). SGC also lied to QBE when QBE were informed that an SGC employee had a conviction for fraud. SGC said that Felstead would no longer work for the company, when in fact, he continued to work on SGC’s surety business. Brunswick has been disqualified as a director for 13 years and 6 months by the Isle of Man regulator. The FSA noted that Higgins would have been fined £600,000 had he not recently been made bankrupt.

For the FSA’s final notice in respect of Brunswick, click here, for the FSA’s final notice in respect of Felstead click here, and for the final notice in respect of Higgins click here.