The FSA has fined Julian Harris, the sole proprietor of Julian Harris Financial Consultants and the sole shareholder of Julian Harris Mortgages Limited, both of which are networks, £49,000.
The regulator has also banned Harris from performing the CF10 (Compliance Oversight) function and from acting as a compliance oOfficer.
The FSA found that between 31 October 2004 and 22 July 2010 Harris failed to perform adequate due diligence on appointed representatives (AR) and advisers before appointing them and to employ ARs who were fit and proper.
Harris also failed to put in place adequate training and oversight procedures for staff and maintain systems and controls at his firms and to monitor their activities to ensure that they complied with regulatory requirements.
The FSA said it considered the misconduct to be serious because regulatory enforcement action has been taken against Harris on two previous occasions and the breaches lasted for a prolonged period and, as a result of them, new advisers and ARs were not subject to adequate vetting before being appointed and were not adequately trained or monitored after appointment.
In some cases incompetent or unfit individuals may have been appointed, and customers may have been exposed to the risk of receiving unsuitable advice, the FSA said.
Harris directly caused the firms to breach Principle 3 of the FSA’s Principles for Businesses, the regulator added.
Harris agreed to settle this matter at an early stage of the FSA’s investigation and therefore qualified for a 30% discount. Otherwise, the fine would have been £70,000.
Julian Harris said: “We accept and have taken onboard all the findings of the FSA staff. We have appointed a new head of compliance.””
