UK regulator stands firm on broker commissions
The Financial Services Authority says it won’t budge on its refusal to make the disclosure of commission arrangements between insurers and brokers compulsory.
The regulator says its “unfair inducements rule”, which prohibits insurers from accepting or offering perks that would conflict with their duties to policyholders, provides enough conflicts of interest protection.
Reactions magazine says the regulator has decided commission disclosure is “too burdensome” to the industry.