Regulator seeks solution on commission disclosure.
The FSA is visiting large insurers as it seeks a conclusion to the commission disclosure issue.
A senior market source said the regulator was currently meeting top level insurers to gauge their appetite for a market-led solution instead of adopting a mandatory disclosure regime.
Many insurers believe that commission disclosure will be made mandatory.
Industry trade bodies including Biba and the ABI have called on their respective members to support an industry-led solution. In July, Biba and the IIB joined forces to tackle the issue. Biba said there are ongoing discussions with the FSA but it is not clear if a solution has been submitted yet. Earlier this year, the FSA issued a consulation paper, called ‘Transparency, disclosure and conflicts of interest in the commercial insurance market’, which gave the market until June 25 to have its say on how commissions should be disclosed.
The FSA is currently reviewing responses to the paper as well as carrying out further customer research and other thematic work. It is expected to release its final consultation, in the form of any new regulation, in the fourth quarter of this year.
