FSA bans PPI broker

The Financial Services Authority (FSA) has taken further enforcement action regarding the sale of payment protection insurance (PPI). It has banned Alan Garlick, a director of Chapel Finance Ltd, from carrying out regulated duties following failures to ensure that guaranteed asset protection policies and PPI contracts were underwritten. The FSA also found that Mr Garlick, who sold car finance and motor related insurance products, held client money without authorisation. An investigation following the company’s collapse revealed that 91 PPI policies sold by Mr Garlick were not underwritten while a further 139 guaranteed asset protection policies were not on risk.