All material subject to strictly enforced copyright laws. © 2021 Insurance Insider is part of Euromoney Institutional Investor PLC.
Accessibility | Terms & Conditions | Privacy Policy | Modern Slavery Act | Cookies | Subscription Terms & Conditions

Tiner warns on commissions disclosure

The prospect of mandatory disclosure of broker commissions in the UK took a step closer today following a speech by the Financial Services Authority chief executive John Tiner.

The head of the UK's regulatory authority said it was becoming "palpably clear" that there was "little chance of a market solution" over the issue of broker commissions.

Despite calls from insurers to mandate disclosure ever since the New York attorney general Eliot Spitzer challenged industry practices in 2004-2005, the FSA has been inclined to allow market forces to dictate the position.

But, speaking at the Lloyd's Old Library today, Tiner said the Authority will now take a "closer look at commission disclosure in our business plan for 2007".

Tiner's comments follow a speech to UK insurance buyers in June where he said he would be looking for improvements from the market.

"If over the next several months we don't find any discernible improvement in transparency, delivered either by market solutions or demonstrated by improvements in the management of conflicts, we will look seriously at whether the benefits of mandating disclosure outweigh the costs and then act accordingly," he told an audience of risk managers.

Speaking today at a lecture organised by Insurance Institute of London, he said: "Our goal is a wholesale and commercial retail market which is clean, efficient and orderly and without that it is difficult to see how the London market can maintain its pre-eminent position as a global leader in the insurance industry."

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree