The FSA has published further proposals on its application fees for general insurance intermediaries.
CP192: Fees for mortgage firms and insurance intermediaries proposes a new method for calculating application fees for insurers who also act as intermediaries.
Where an insurer advises on or arranges their own products, the FSA is proposing to create a notional commission figure, which is calculated by multiplying the volume of premiums by 10%. This figure will be added to any 'normal' commission earned by the firm.
The FSA proposes to use this volume to determine into which application fee band the intermediary will fall.
For more information on the proposals visit the
Insurance Times Compliance Website .
