Close Brothers reverses commission disclosure and consent requirement

Close Brothers Premium Finance has removed the requirement to obtain customers’ explicit consent to commission arrangements.

The move marks a change to its commission disclosure and consent (CDC) requirements, which were introduced at the beginning of 2025.

These came following the Johnson, Wrench and Hopcraft Court of Appeal judgment, with the requirements ensuring customers received full disclosure of the arrangements and provided explicit consent to commission payments.  

However, following Close Brothers’ successful Supreme Court appeal and the publication of the FCA Market Study review, the business decided to remove the requirement to obtain customers’ explicit consent to commission arrangements.

Shaun Hooper, chief executive at Close Brothers, said: “Our initial changes made in 2025 were done so in support of our brokers and customers alike.

“We maintain that customers should receive full transparency about commission arrangements, before entering into a credit agreement.”

Transparency

Close Brothers is delivering a series of training webinars for brokers to explain the change, which will be implemented on 10 March 2026. 

Hooper added: “With greater clarity around the regulatory and legal requirements, this change will support a faster and more streamlined journey for both the broker and the customer, while continuing to provide information to customers that helps them make an informed decision about their finance purchase.

”We will be working closely with brokers over the coming weeks to help them understand the change and its benefits.”