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.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
EBA seeks to allay Simm divergence concerns
EU validator pledges to co-ordinate with global regulators, but retains ability to act alone “if needed”
FRTB models find salvation in US Basel III proposal
Changes to P&L attribution test and NMRFs make IMA viable for US banks, risk managers say
US blows the floors off Basel III
Barr criticises “downward deviations” in US rule; Bowman rejects “blind adherence” to global standards
Basel III endgame – a timeline
A review of Risk.net’s coverage of the US implementation saga
Leaked EU plans offer extra temporary relief for FRTB models
Risk factors would need only two observations to be modellable. Do changes foreshadow US Basel III?
Iosco chief talks cyber, AI and clearing
Buenaventura discusses Iosco’s role in aiding market resilience and cross-border co-operation
US regulators bid to save FRTB IMA, but it’s no small task
Even if industry wish-list is granted, a 2028 start date might be too soon for model adoption
Hopes rise for cross-product netting under SA-CCR
Banks want rule change in Basel III endgame to lower capital costs of clearing UST repos