The FSA has approved the industry’s solution for commission disclosure.
Brokers will now be encouraged to follow the approach set out in the industry guidance to meet the relevant authority requirements for conflicts of interest, disclosure and transparency.
The main focus is on placing more prominence on the customer’s right to ask how much commission a broker earns from a transaction.
The guidance also places more emphasis on how brokers should manage conflicts of interest. No new rules have been introduced and the current “disclosure upon request” remains in place. In 2010/11, the FSA will assess whether brokers are meeting its outcomes for commercial customers.
Click here for exclusive video reaction from Steve White, Biba’s head of compliance and training.