Former chief exec, James Richardson, 'failed to act with integrity' and was not deemed to be candid enough in his dealings with the firm's former auditors.
As a result, the regulator has banned Richardson from performing 'significant influence functions' in relation to any regulated activity.
In September 2004, Richardson told Insure & Go's auditors that Insure & Go was using a Gibraltar-based travel club scheme to limit the firm's liability for Insurance Premium Tax (IPT). In support of this Richardson provided the auditors with an agreement dated 9 January 2003. However in November 2004, Richardson told Insure and Go's auditors that the agreement had not been in existence in 2003.
In fact the Gibraltar Scheme did not operate until 2004 and then only to an ineffective standard. Later Mr Richardson provided information about the Gibraltar Scheme to the FSA purporting to show that the Gibraltar Scheme had operated from 2002.
FSA director of enforcement, Margaret Cole, said: "It is crucial that CEOs and others with significant influence over the operations of firms display integrity and are candid and open with their auditors and with regulators.
"Richardson failed to meet this requirement and has been banned. This sends out a message that the FSA will take strong action in future cases of this kind."
The FSA is not pursuing any disciplinary action against Insure & Go and accepts that no customer detriment has been suffered as a result of Richardson's misconduct.
