FSA fines Julian Harris for his networks

Nia Williams

November 30, 2011

Harris is the sole proprietor of Julian Harris Financial Consultants and the sole shareholder of Julian Harris Mortgages Limited, both of which are networks.

The FSA has taken this action because between 31 October 2004 and 22 July 2010 Harris, who was responsible for the firms, failed to:

  • perform adequate due diligence on appointed representatives and advisors before appointing them;
  • employ ARs who were fit and proper;
  • 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 considers 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.

Harris directly caused the firms to breach Principle 3 of the FSA’s Principles for Businesses.

Harris agreed to settle this matter at an early stage of the FSA’s investigation and therefore qualified for a 30% discount. Were it not for this discount, the fine would have been £70,000.

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