Ex-BBN chief Harrison fined 15,000 by FSA

Former Berry Birch & Noble Insurance Brokers chief executive Paul Harrison has been fined 17,500 by the FSA for serious failings at the firm.

The regulator found Harrison guilty of failing to ensure that the firm had proper systems and controls in place to protect customers’ money held by the firm.

BBNIB was authorised as a general insurance broker between January 14, 2005 and May 8, 2006 but is no longer trading after selling its assets earlier this year. In July 2005, the firm’s auditors found that the firm was not complying with the FSA’s client money rules. The FSA says Harrison did not know and did not enquire whether BBNIB was complying with these rules.

The FSA says Harrison was responsible for the firm’s failure to segregate client money, keep track of the money held by third parties and failing to perform client money calculations and reconciliations.

Harrison accepted personal responsibility for the failings at BBNIB and the FSA credited him for his conduct after the issues were identified.

Director of enforcement Margaret Cole says: “Harrison was an approved person who failed to carry out his controlled functions with due skill, care and diligence. His failure meant that BBNIB did not provide adequate protection for its clients’ money.”