UPDATE 1-UK's FSA bans five executives over insurance fraud

* Jeffery Flanders director fined 150,000 pounds

* Five individuals banned over insurance fraud

LONDON, Aug 17 (Reuters) - Britain's Financial Services Authority (FSA) regulator has banned five individuals in relation to insurance fraud and given one director a near-record fine of 150,000 pounds ($234,100).

The FSA said on Tuesday that the five insurance executives whom it had banned had shown complete disregard for the interests of their customers.

Andrew Jeffery, a director of Jeffery Flanders Limited, was fined 150,000 pounds for failing to put in place adequate insurance policies and knowingly forging documents. The FSA described it as one of the largest ever fines against an insurance broker.

Barrie Duncan Aspden of Orion Direct Limited and Peppercom Plc was banned for using customer money to create a new company, meaning that customers were at risk of being uninsured because their premiums were being misused.

Aspden's wife Melanie and his sister-in-law Gaenor Clayton were also banned, along with Orion executive Paul Willment, for their roles in the affair. Willment was fined 50,000 pounds.

The FSA has sought to toughen up its act in the wake of the financial crisis, and last month it handed out a 320,000 pound fine to the former finance director of Northern Rock, the first British victim of the credit crunch. [ID:nLDE66Q0W4] ($1=.6408 Pound)

(Reporting by Sudip Kar-Gupta)