Julian Harris, the sole proprietor of Julian Harris Financial Consultants and the sole shareholder of Julian Harris Mortgages Ltd, was today personally fined £49,000 by the FSA for poor management and compliance oversight, and banned from acting as a compliance officer.
The enforcement action relates to issues that arose between 31 October 2004 and 22 July 2010.
However, Julian Harris networks said that the FSA’s visit has “strengthened” the company, with all the regulator’s requirements now implemented, and it is “optimistic” about the future.
Julian Harris himself will remain as chief executive officer of the company, it confirmed, concentrating on the business aspects of the networks.
In a statement, the firm said: “We accept and have taken onboard all the findings of the FSA staff. We have appointed a new head of compliance.
“Julian Harris will concentrate on the business aspects of our IFA and MA networks.
“All remedial work and improvements to our systems and controls have taken place and we believe we have a good ongoing relationship with our FSA supervisor.
“We believe this action has put us in a stronger position than previously and we are optimistic about our future and our offering in the marketplace.”
It said that advisers are unaffected by the changes, confirming there are 127 advisers with Julian Harris Mortgages Ltd, of which 87 are ARs, and 38 IFAs with Julian Harris Financial Consultants, of which 11 are ARs.
In addition, the business said it has made a “healthy profit” since 1992 and it saw “no reason for this not to continue”.
The firm has voluntarily appointed a new head of compliance, Mark Mifflin, who joined the firm on 21 November. He will work to ensure the networks continue in a compliant manner and retain its “ongoing good relationship” with the regulator, it said.
A Julian Harris AR told Mortgage Solutions: “Julian Harris is good, if not better, than some of big networks and I think it offers a fairly robust and thorough compliance system. I hope that what has happened in the past has no bearing on the future.”
However, one broker who left the Julian Harris network this summer to become an AR at another network, told us: “The fine is not a surprise. I’m sorry it’s happened, but the compliance at Julian Harris was weak.”
