FSA chief executive John Tiner has said that the Authority will take a "closer look at commission disclosure" and that there was "little chance of a market solution" over the issue of broker commissions.
Ian Mason, a partner in Barlow Lyde & Gilbert's Financial Services Regulatory team and a former FSA enforcement head, said: "The FSA is concerned about broker commissions because it is worried about conflicts of interest.
"Whereas the US authorities have taken an aggressive approach to conflicts of interest, the FSA has previously looked to the market to provide a solution to disclosure of commissions.
"However, the gloves may now be coming off in the UK, and the FSA may introduce new rules in this area.
"This is at odds with the FSA's general wish to move towards a more principles-based approach, with fewer rules. It also contrasts strongly with its less interventionist approach to contract certainty, where the market has been more successful in devising a solution."
Recent Related News
Practitioner Panel welcome FSA's call for collaboration
FSA: Providers and distributers must collaborate on TCF
FSA warns of broker's illegal motor policies
FSA launches new disclosure tool
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
