UK regulator backs away from compulsory disclosure
British brokers look to be winning the battle over mandatory commission disclosure.
At an industry roundtable meeting in London last week, Financial Services Authority (FSA) CEO Hector Sants flagged a preference for an industry solution rather than imposing a rule.
The FSA is investigating commission disclosure as part of its wide-ranging review of transparency and conflicts of interest in the insurance sector.
Institute of Insurance Brokers CEO Barbara Bradshaw says mandating commission disclosure could disadvantage brokers who offer enhanced value-add services such as claims-settling.
She says full mandatory disclosure would be impracticable and unworkable. “Full disclosure is virtually impossible when profit shares, for example, can come up to three years after the event,” Ms Bradshaw told insuranceNEWS.com.au.
And she says clients are already entitled “to ask and be told remuneration” under existing regulations, rendering the regulator’s review “irrelevant”.
At an industry roundtable meeting in London last week, Financial Services Authority (FSA) CEO Hector Sants flagged a preference for an industry solution rather than imposing a rule.
The FSA is investigating commission disclosure as part of its wide-ranging review of transparency and conflicts of interest in the insurance sector.
Institute of Insurance Brokers CEO Barbara Bradshaw says mandating commission disclosure could disadvantage brokers who offer enhanced value-add services such as claims-settling.
She says full mandatory disclosure would be impracticable and unworkable. “Full disclosure is virtually impossible when profit shares, for example, can come up to three years after the event,” Ms Bradshaw told insuranceNEWS.com.au.
And she says clients are already entitled “to ask and be told remuneration” under existing regulations, rendering the regulator’s review “irrelevant”.