Near final rules on how brokers deal with their own and client accounts will be published in September, according to the FSA. And no one will be watching more closely than the premium finance provider ...
Near final rules on how brokers deal with their own and client accounts will be published in September, according to the FSA. And no one will be watching more closely than the premium finance providers.
Why? Well, premium finance providers see an opportunity. There is an opportunity for the providers to make some short-term loans to help brokers tackle new ways of claiming commission. Also premium finance provides a way for brokers to prove in front of auditors that client monies are being segregated.
Of course, no one knows what the final rules will look like and brokers are lobbying hard to change them. But it is encouraging that premium finance providers and brokers are having discussions ahead of what could be a massive change.
Another reason why brokers are taking more time to talk to premium finance providers is because there are more of them around. In the past few years the traditional two or three dominant forces have been joined by a number of niche players, giving brokers more choice. But what's on offer, Francis Higney takes a look.
Andy Cook
Editor
