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FSA fines Berry Birch & Noble former chief

Berry Birch & Noble Insurance Brokers former chief executive Paul Harrison has been fined £17,500 by the FSA for failing to have proper systems and controls in place to protect customers’ money held by the firm.

BBNIB was authorised as a general insurance broker between Januray 14 2005 and May 8 2006. In July 2005 the firm’s auditors found serious failings in its client money systems which meant the firm was not complying with the FSA’s client money rules.

Before this information was known, the FSA says Harrison did not know and did not enquire whether BBNIB was complying with these rules.

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

“The client money rules are designed to ensure that money belonging to customers is protected and those responsible for firms which hold client money should appreciate that they are responsible for ensuring that the rules are complied with.”

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