Harbour Investments, Inc..

Includes form instructions and options. Options shown in this text do not identify which boxes were selected.

GENERAL INSTRUCTIONS
This Disclosure Reporting Page (DRP ADV) is an 
INITIAL OR
AMENDED response used to report details for affirmative responses to Items 11.C., 11.D.,
11.E., 11.F. or 11.G. of Form ADV.
Regulatory Action
Check item(s) being responded to:
11.C(1)
11.C(2)
11.C(3)
11.C(4)
11.C(5)
11.D(1)
11.D(2)
11.D(3)
11.D(4)
11.D(5)
11.E(1)
11.E(2)
11.E(3)
11.E(4)
11.F.
11.G.
Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File
with a completed Execution Page. 
One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the
same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP.
PART I
A.  The person(s) or entity(ies) for whom this DRP is being filed is (are):
You (the advisory firm)
You and one or more of your advisory affiliates
One or more of your advisory affiliates
If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). 
If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box.
ADV DRP - ADVISORY AFFILIATE
No Information Filed
This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser.
This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is
registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the
adviser's or advisory affiliate's favor.
If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item
11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any
event listed in Item 11 that occurred more than ten years ago.
This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the
circumstances: 
B.
If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to
the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided.
 Yes
 No
NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records.
PART II
1.  Regulatory Action initiated by:
SEC   
Other Federal   
State   
SRO
Foreign
(Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
2.
Principal Sanction:
Cease and Desist
Other Sanctions: 
3.
Date Initiated (MM/DD/YYYY): 
09/13/2018
 Exact
 Explanation
If not exact, provide explanation:
4.
Docket/Case Number:
3-18760
5.
Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable):
6.
Principal Product Type:
Mutual Fund(s)
Other Product Types: 
7.
Describe the allegations related to this regulatory action (your response must fit within the space provided):
SEC ADMIN RELEASE 34-84115, IA RELEASE 40-5006 / SEPTEMBER 13, 2018: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") DEEMS
IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE,
INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 ("EXCHANGE ACT") AND SECTIONS 203(E) AND 203(K) OF THE
INVESTMENT ADVISERS ACT OF 1940 ("ADVISERS ACT") AGAINST HARBOUR INVESTMENTS, INC. ("HARBOUR" OR "RESPONDENT"). THE COMMISSION
FINDS THAT THESE PROCEEDINGS ARISE FROM CERTAIN FAILURES BY REGISTERED INVESTMENT ADVISER HARBOUR. FROM AT LEAST 2012 THROUGH
2016 (THE "PERTINENT PERIOD"), HARBOUR FAILED TO FULLY AND FAIRLY DISCLOSE TO ITS ADVISORY CLIENTS COMPENSATION IT RECEIVED UNDER A
MARKETING SERVICES AGREEMENT WITH A THIRD-PARTY BROKER-DEALER ("CUSTODIAN A") THAT PROVIDED CUSTODY AND CLEARING SERVICES TO
HARBOUR AND THE CONFLICTS OF INTEREST ARISING FROM THAT COMPENSATION. THIS ARRANGEMENT CREATED INCENTIVES FOR HARBOUR TO FAVOR
CUSTODIAN A OVER OTHER CUSTODIANS WHEN GIVING INVESTMENT ADVICE TO ITS ADVISORY CLIENTS ABOUT WHERE TO CUSTODY ASSETS. DURING
THE SAME PERIOD, HARBOUR INVESTED SOME OF ITS ADVISORY CLIENTS IN MUTUAL FUND SHARE CLASSES WITH 12B-1 FEES WHEN LOWER COST
SHARE CLASSES OF THE SAME FUND WERE AVAILABLE. IN ITS CAPACITY AS A BROKER-DEALER, HARBOUR RECEIVED 12B-1 FEES FROM SOME
INVESTMENTS IN THESE SHARE CLASSES, WHICH CREATED A CONFLICT OF INTEREST THAT HARBOUR DID NOT FULLY AND FAIRLY DISCLOSE TO ITS
ADVISORY CLIENTS. INVESTING IN A MORE EXPENSIVE SHARE CLASS OVER A LESS EXPENSIVE ONE IN THE SAME FUND WAS ALSO INCONSISTENT
WITH HARBOUR'S DUTY TO SEEK BEST EXECUTION FOR ITS ADVISORY CLIENTS. FINALLY, HARBOUR DID NOT IMPLEMENT CERTAIN OF ITS POLICIES
AND PROCEDURES DESIGNED TO MANAGE THE ABOVE CONFLICTS. BASED ON THE CONDUCT ALLEGED, HARBOUR VIOLATED SECTIONS 206(2), 206(4)
AND 207 OF THE ADVISERS ACT AND RULE 206(4)-7 THEREUNDER.
8.
Current Status?      
 Pending
 On Appeal
 Final
9.
If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed:
If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only.
10. How was matter resolved:
Order
11. Resolution Date (MM/DD/YYYY):
09/13/2018
 Exact
 Explanation
If not exact, provide explanation:
12. Resolution Detail:
A.  Were any of the following Sanctions Ordered (check all appropriate items)?
 Monetary/Fine Amount: $ 75,000.00
 Revocation/Expulsion/Denial
 Disgorgement/Restitution
 Censure
 Cease and Desist/Injunction
 Bar
 Suspension
B.
Other Sanctions Ordered:
Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal,
Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to
requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution,
disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion
of penalty was waived: 
HARBOUR IS CENSURED AND ORDERED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS
OF SECTIONS 206(2), 206(4), AND 207 OF THE ADVISERS ACT AND RULE 206(4)-7 THEREUNDER. HARBOUR SHALL PAY DISGORGEMENT OF

$157,327, PREJUDGMENT INTEREST OF $9,152, AND A CIVIL PENALTY IN THE AMOUNT OF $75,000, FOR A TOTAL OF $241,479. HARBOUR IS ALSO
ORDERED TO COMPLY WITH CERTAIN UNDERTAKINGS.
13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response
must fit within the space provided).
RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT (THE "OFFER") WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. HARBOUR WILLFULLY
VIOLATED SECTIONS 206(2), 206(4) AND 207 OF THE ADVISERS ACT AND RULE 206(4)-7 THEREUNDER. IT IS ORDERED THAT HARBOUR IS CENSURED
AND SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 206(2), 206(4), AND
207 OF THE ADVISERS ACT AND RULE 206(4)-7 THEREUNDER. HARBOUR SHALL PAY DISGORGEMENT OF $157,327, PREJUDGMENT INTEREST OF $9,152,
AND A CIVIL PENALTY IN THE AMOUNT OF $75,000, FOR A TOTAL OF $241,479. HARBOUR IS ALSO ORDERED TO COMPLY WITH CERTAIN
UNDERTAKINGS.