FSA fines BBNIB’s Paul Harrison for non-compliance

The former chief executive of Berry Birch and Noble Insurance Brokers (BBNIB), Paul Harrison found himself enduring the wrath of the Financial Services Authority (FSA) in late September. The FSA fined him £17,500 for failing to ensure clients’ money held by the firm was properly protected.

The FSA indicated that it felt Harrison’s period as chief executive coincided with the BBNIB not complying with the FSA’s client money rules.

During his time in office, between January 14, 2005 and May 8, 2006, the BBNIB’s own auditors noticed that the firm was falling foul of the rules on a continuous basis.

Harrison claimed he neither knew of, nor enquired about, any potential failure to comply with the rules. FSA director of enforcement, Margaret Cole, was however, scathing in her criticism. She said: "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."

Harrison has accepted personal responsibility for the failings at BBNIB according to the FSA, and it also points out that, in delivering its fine, the FSA appreciates his conduct following the identification of the problem.