UK brokers welcome dropping of commission plan
UK broker groups have welcomed a decision by the regulator not to impose mandatory disclosure on local insurance brokers.
On Thursday the Financial Services Authority (FSA) formally confirmed the adoption of industry guidance to govern conflicts of interest, disclosure and transparency within the commercial insurance broking sector.
The FSA had previously considered mandatory commission disclosure as one of several proposals to improve transparency around intermediaries’ remuneration and services.
Instead, the regulator has introduced “industry guidance”, which will include codes of practice and similar statements generated by trade bodies to help members understand and follow good practice in meeting regulatory requirements.
British Insurance Brokers’ Association (BIBA) CEO Eric Galbraith says he’s delighted with the decision.
“Commercial customers should expect to receive disclosures that are clear and accurate and this industry guidance should play an important part in helping achieve this,” he said.
Institute of Insurance Brokers (IIB) CEO Barbara Bradshaw says the decision “has averted any immediate prospect of mandatory commission disclosure” which could have “reduced the availability of advice and choice for customers”.
London & International Insurance Brokers Association CEO David Hough says the industry “stands to benefit from commercial customers having a clearer understanding” of broker services and remuneration.
Taking the high ground was Association of British Insurers Director of General Insurance Nick Starling, who described the ruling as a “welcome first step” toward greater industry transparency.
On Thursday the Financial Services Authority (FSA) formally confirmed the adoption of industry guidance to govern conflicts of interest, disclosure and transparency within the commercial insurance broking sector.
The FSA had previously considered mandatory commission disclosure as one of several proposals to improve transparency around intermediaries’ remuneration and services.
Instead, the regulator has introduced “industry guidance”, which will include codes of practice and similar statements generated by trade bodies to help members understand and follow good practice in meeting regulatory requirements.
British Insurance Brokers’ Association (BIBA) CEO Eric Galbraith says he’s delighted with the decision.
“Commercial customers should expect to receive disclosures that are clear and accurate and this industry guidance should play an important part in helping achieve this,” he said.
Institute of Insurance Brokers (IIB) CEO Barbara Bradshaw says the decision “has averted any immediate prospect of mandatory commission disclosure” which could have “reduced the availability of advice and choice for customers”.
London & International Insurance Brokers Association CEO David Hough says the industry “stands to benefit from commercial customers having a clearer understanding” of broker services and remuneration.
Taking the high ground was Association of British Insurers Director of General Insurance Nick Starling, who described the ruling as a “welcome first step” toward greater industry transparency.