RLA director sacked 'for signing off £3.6m deals'

The finance director of Royal Liver Assurance (RLA) was sacked over claims he made unauthorised payments worth millions to an advisory business run by a former colleague.

George McGregor allegedly signed off contracts worth £3.6m with Utility Capital Management (UCM), an investment advisory firm owned by former RLA investments head James Stuart-Smith, without board approval.

McGregor was dismissed earlier this month after RLA said he had made 'unauthorised payments' to an unnamed company, writes the Daily Mail.

According to reports, RLA has "brought proceedings against James Stuart-Smith and associated companies in relation to certain alleged commercial arrangements between the parties and is seeking to recover over £3.6m of unauthorised payments".

But Stuart-Smith, who left Royal Liver to form UCM in 2008, insists the contracts are legally binding.

This latest controversy follows the winding down last year of Park Row, the financial advice business Royal Liver paid £17m for in 2003.

The national IFA was criticised by the FSA for failing to ensure customers received suitable advice and Royal Liver was ordered to compensate Park Row clients to the tune of between £5m and £7.8m.