FSA set to focus on transparency of fees and commissions in the London market
Transparency of fees and commissions could be brought within the FSA's review of London market practices.
An industry working party has been set up to address the issues of contract certainty raised by FSA chief executive John Tiner in his hard-hitting attack on market practices.
Senior industry figures met Tiner before Christmas and were charged with developing a joint plan to improve contract clarity and improve the speed of policy production.
But there were indications that the scope of the discussion could be expanded to other areas including brokers' remuneration.
Tiner has said that the use of inducements in the London wholesale markets would be an "early priority" for the regulator.
Biba chief executive Eric Galbraith said: "Everyone was keen to find a solution to [the issue of contract certainty]. The group could expand its remit as it moves forward. It was very positive."
Aon has already instigated a number of changes to fall in line with Tiner's calls for greater transparency by abandoning contingent commissions.
And Marsh is understood to be discussing its new transparent business model with the FSA.
The working group comprised leading brokers, including Aon and Marsh, industry bodies such as the LMBC Airmic, the IUA and Lloyd's. It will meet again in early February.
A Lloyd's spokesperson said: "It was a constructive meeting, and we welcome the direction this work is taking."
