FCA announces overhaul in broker property commissions amid market failure
Brokers face a near ban on paying commissions to third parties after a shock FCA report revealed incompetence and unjustifiable remuneration in the buildings’ insurance market.
Brokers will also have to reveal full commission disclosure to customers on how much commission they receive from carriers for buildings’ insurance.
These are two of the biggest changes the regulator wants to impose by the end of this year on the buildings’ insurance market.
FCA consumer and competition director Sheldon Mills says the regulator “will not hesitate” to take action against brokers who fail to comply.
Insurers are also in the firing line for failing to have oversight and controls
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