The Bermuda Monetary Authority has issued an order of prohibition against former Bermuda insurance broker, David Douglas King, to safeguard potential clients and the public.

The American was director of Swift Intermediaries.

Last month, the firm lost an appeal against a BMA decision to cancel its licence and bar Mr King from the industry for three years.

A BMA spokesman said: “Having regard to Mr King’s probity, competence and soundness of judgment for fulfilling the role as director of the company and the lack of diligence with which Mr King acted in this role, the authority concluded that Mr King, being a person who is registered by the authority under the Insurance Act, is not a fit and proper person to perform any functions in relation to regulated activity under the Insurance Act.”

The BMA determined that Mr King failed to ensure that Swift Intermediaries complied with statutory obligations under the Insurance Act, Insurance Brokers and Insurance Agents Code of Conduct, the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008, the Exchange Control Regulations 1973 and the Companies Act 1981.

It also concluded that Mr King failed to conduct business in a prudent manner and did not comply with a condition attached to the company’s registration or with a requirement made of it under the Insurance Act.

In addition, the BMA found that Mr King did not, in their opinion, carry on business in accordance with sound insurance principles and also that Mr King was not compliant with the minimum criteria for registration as mandated in the schedule to the Insurance Act.

With there being no further appeal by Mr King, the BMA issued a prohibition order with effect from May 14.

It bans him from performing the functions of director, controller, chief executive officer, senior executive and associate and from conducting any regulated activity carried on by way of business requiring registration or other authority by the BMA, under any provision of the Insurance Act, for three years.

The BMA viewed the breaches as serious because of their nature and extent.