FSA has fined Richard Holmes, a director of AIF, for control failings relating to an appointed representative. AIF, an insurance broker, appointed an AR on the basis solely of assurances given to Mr Holmes from two business contacts (who were later banned by FSA). Some months later, an underwriter told Mr Holmes the AR had premiums outstanding. The AR said they were up to date and Mr Holmes did not carry out further checks. He did not increase monitoring of the AR nor investigate how it carried on its business. A year after the appointment a client complained the AR had not put insurance in place and Mr Holmes terminated the appointment.