The FSA has released a consultation paper, CP192, clarifying the fees that will apply to insurers who act as intermediaries and to brokers who receive payments other than fees or commission from insurers.
Under the FSA's system, the level of application and annual fees is based on volume of business, measured by annual commission and fee income.
CP192 sets out a method for calculating a notional income figure for businesses that do not generate commission in the normal way, and for creating a notional commission figure for insurers who sell their own products direct. These will determine into which of the FSA's proposed fee blocks a company will fall.
