British brokers: no client demand for commission disclosure
British broker associations have united to oppose mandatory commission disclosure, citing a lack of customer demand for change.
In a submission to the Financial Services Authority (FSA), the British Insurance Brokers’ Association (BIBA) last week expressed its preference for an industry solution.
BIBA CEO Eric Galbraith says the existing system of “high-level principles plus disclosure on request is sufficient”.
He says clients are happy with present arrangements. “There is no evidence that the current regime affords commercial customers inadequate protection or that these commercial customers want change.”
The Institute of Insurance Brokers (IIB) says there is no client demand for mandatory commission disclosure. CEO Barbara Bradshaw says forcing brokers to reveal commission levels would add substantially to their costs.
“The case for mandatory disclosure – and its associated costs – simply has not been made,” she said. “All that would be achieved is to increase expense for businesses and their customers.”
Earlier this month FSA CEO Hector Sants appeared to flag a preference for an industry solution rather than a rule. But the regulator is keeping its options open as it reviews industry submissions before making a decision later this year.
In a submission to the Financial Services Authority (FSA), the British Insurance Brokers’ Association (BIBA) last week expressed its preference for an industry solution.
BIBA CEO Eric Galbraith says the existing system of “high-level principles plus disclosure on request is sufficient”.
He says clients are happy with present arrangements. “There is no evidence that the current regime affords commercial customers inadequate protection or that these commercial customers want change.”
The Institute of Insurance Brokers (IIB) says there is no client demand for mandatory commission disclosure. CEO Barbara Bradshaw says forcing brokers to reveal commission levels would add substantially to their costs.
“The case for mandatory disclosure – and its associated costs – simply has not been made,” she said. “All that would be achieved is to increase expense for businesses and their customers.”
Earlier this month FSA CEO Hector Sants appeared to flag a preference for an industry solution rather than a rule. But the regulator is keeping its options open as it reviews industry submissions before making a decision later this year.