A UK broker has been fined more than £1 million ($1.96 million) and banned from financial services work after misleading the regulator and misusing funds meant for insurers.

Leigh Mackey, who had sole control of Inspire Insurance Services, used premium funds to support the brokerage’s costs and to pay for personal living expenses, the Financial Conduct Authority says.

Inspire also submitted regulatory reports over four years falsely stating it had carried out required client asset audits, according to the authority.

The brokerage, a construction sector specialist, was placed into liquidation on November 6 2020.

Mr Mackey accepted that Inspire owes insurers more than £660,000 ($1.29 million), while estimates by the liquidator suggest a shortfall of more than £2.2 million ($4.3 million).

The FCA’s financial penalty comprises a £968,479 ($1.9 million) repayment of funds and a £134,400 ($263,178) penal element.

“Mr Mackey helped himself to insurer funds to prop up his business and personal finances,” joint executive director of enforcement and market oversight Therese Chambers said. “This fine and ban shows how seriously we take individuals who abuse their position for personal gain and risk damaging the integrity of the UK’s financial system.”