Regulator blasted on failure to support mandatory disclosure
Lloyd's Market Association chief executive Simon Sperryn has slammed the FSA for its failure to show "support" for London market remuneration transparency.
Speaking at a recent seminar hosted by law firm Reynolds Porter Chamberlain, Sperryn renewed calls on the regulator to mandate commission disclosure.
He said the Beazley Working Party's efforts to persuade brokers to sign up to its proposed model on broker remuneration had been hampered by a lack of support from the FSA.
Some larger brokers, he claimed, would be able to "fudge what they deemed as the commission figure" in the distribution chain because the FSA had not made disclosure mandatory.
He said the working party would not negotiate on its call for disclosure.
Sperryn added that without the FSA's regulatory support, brokers would not be motivated to support the working party's initiative.
He also criticised the FSA for its failure to support brokers that had already committed to making commissions transparent.
He said the FSA "had a duty to ensure that those employing good practice should not be put at a competitive disadvantage to those who do not.
"Sooner or later, the FSA will have to come out with an unambiguous statement for disclosure." Sperryn added.
An FSA spokesman responded by citing chief executive John Tiner's speech earlier this year: "Full disclosure would not be a panacea, nor provide a safe harbour from the need to manage conflicts: they would still be present and they would still have to be managed."
