A COMPANY director from Pendle has been barred by finance watchdogs from running a firm again.

The Financial Services Authority (FSA) has banned Graham Darby, a former director at Nelson-based insurance broker Ambrose Darby, from performing “significant influence functions” for businesses in future.

Mr Darby, 45, was diagnosed with a “severe medical condition” last year but did not run his company properly, the FSA said.

Investigators found that at one time the family firm, formerly based in Manchester Road, owed insurance providers almost £84,000 and had failed to collect nearly £62,000 from customers.

They discovered that the firm also had no system in place to manage collection or payment of money.

And the FSA also said that Mr Darby failed to “seek assistance to deal with his business affairs” after learning of his illness last July.

After the probe, FSA chiefs petitioned for the company to be wound up and an order was granted in March.

It is the first time the powers have been exercised under the Financial Services and Markets Act 2000.

Margaret Cole, the FSA’s director of enforcement, said: “The FSA is sympathetic with regard to Darby’s medical condition but the consequence nonetheless was that it was unclear both to customers and providers who was responsible for the day-to-day operation of the firm while he was absent.

"This was unacceptable.

“Directors must demonstrate their capability to ensure their firm meets compliance standards and those who do not do so face being banned from senior roles in the financial services industry.”

Ambrose Darby’s landline number was not working.