Disclosure of Commissions - Premium Credit – Do the Right Thing….

In a move to protect their insurance broker clients and their customers, Close Brothers Bank from today and Investec Bank from last week now require all their insurance brokers to disclose their commissions to their customers and obtain a signed consent from their customers to the payment of commission to their insurance brokers.

To protect our insurance brokers, Bexhill UK has for many months required all of our insurance brokers to disclose their commissions to their customers.

Premium Credit has not as far as we are aware made any public announcement on this matter. Why not? Close Brothers Bank has lost a case in the Court of Appeal on the disclosure of commissions by its brokers and been denied leave to appeal. Premium Credit is the biggest lender in the insurance premium finance market. Is Premium Credit going to stay silent on the implications to their brokers of a case which states that all credit brokers in the UK, owe a fiduciary duty to their customers and therefore must disclose their commissions and any exclusivity arrangements to their customers. Really?