The FSA has slapped a £17,500 fine on former chief executive of Berry Birch & Noble Insurance Brokers (BBNIB), Paul Harrison, for failure to comply with client money rules.
The City watchdog said BBNIB's auditors had identified “serious failings” in the brokers' client money systems and practices, which Harrison was responsible for as chief executive.
In a statement the FSA said: “Harrison was responsible for the firm's failure to segregate client money, to keep track of client money held by third parties and to perform essential client money calculations and reconciliations.
“As a result of these failings client money was not adequately protected and only after extensive investigation by audit professionals were accurate balances struck and confirmation given that they were genuinely in credit.”
Harrison has accepted personal responsibility for the failings at BBNIB and the FSA said it has given him full credit for his conduct following the identification of this issue. Otherwise a more severe sanction might have been imposed.
Prior to its sale to Smart & Cook, BBNIB was owned by the beleaguered financial services group Berkeley Berry Birch (BBB), which last year landed itself in trouble with the FSA over regulatory capital shortfalls.
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