Director general Andrew Paddick says FSA has acknowledged "problems" which would result from mandation
IIB Director General Andrew Paddick, who attended an FSA briefing this morning, was pleased to hear that as a result of the CRA International report, commission disclosure by brokers to commercial clients will not be made mandatory by the regulator - for the time being at least.
Mr. Paddick said: “Our representations made to both CRA and FSA officials are reflected in the report and it is comforting to note that many of the problems which would result from a mandatory disclosure regime have been acknowledged. However, we are mindful that FSA officials still have a number of concerns regarding a lack of transparency and we will be meeting with them in the New Year in order to discuss ways of the market better interpreting and complying with existing rules, such as treating customers fairly and managing conflicts of interest. In my view, we must keep an eye on and dialogue with the EU Commission as the Insurance Mediation Directive comes up for review, because most European markets are largely insurer and tied agent controlled, which could result in proposals for change not favourable for independent brokers – the IIB will be in Brussels during 2008”.
