Brokers have been asked to consider four potential commission disclosure models under the FSA’s review.
Reports last week suggested that brokers had been asked to provide feedback on three models for mandatory commission disclosure. These include disclosure of full remuneration to client and insurer.
But it emerged this week that a fourth and more draconian model is under consideration.
The fourth model would required brokers to disclose the amount of remuneration earned by all brokers in a sub-broking chain.
Questionnaires were set to a selection of brokers by CRA, the consultancy firm hired by the FSA to undertake the review. Brokers were asked to provide cost figures for implementing each model.
Meanwhile the IIB is calling for a meeting with the FSA to express its concern over the complexity of the questionnaire.
Andrew Paddick, IIB general director, said: “Two of our directors are prepared to go down to Canary Wharf to express their views. We have made contact but at the moment we have left it with them.”
Paddick said the IIB did write to all members and offered them the chance to see the FSA’s form, and only a handful requested to see it.
Steve White, BIBA’s regulation and compliance manager, said: “We have encouraged our members to fully cooperate. They [BIBA members] said it was complicated and time consuming but they would much rather be given it to do than not.
“It is very important that they can take the chance to have a look at the costing side to this.”
