FSA looks deeper into mandatory disclosure

The Financial Services Authority (FSA) has urged commercial insurance brokers to develop a solution to raise transparency in commission disclosure, or face new rules. The regulator will begin a market failure analysis alongside a cost benefit analysis in 2007/8 that will look at whether a lack of transparency is causing customer detriment or impairing market efficiency. It will also consider whether mandating commission disclosure to commercial clients will create benefits that outweigh the costs of the new rules.