Court of Appeal Case against Close Brothers – October 25th 2024 Requirement for insurance brokers, who are acting as credit brokers, to fully disclose

The Court of Appeal has held that credit brokers must disclose the full amount of the commission they are earning from a customer and whether they have an exclusive arrangement with a finance provider.

In the context of insurance brokers that act as credit brokers in the provision of premium finance, the implications are clear. You must disclose the amount of commission you are earning on the premium finance provided to your customer and you must disclose the fact that you are exclusive to your premium finance provider.

Failure to make such disclosures will result in all commissions plus interest being payable back to the customer.

As we have stated for many years, please make full disclosure to your customers of your premium finance arrangements.