The Financial Conduct Authority has confirmed it is not going down the route of banning broker commission in premium finance and will not be forcing a 0% annual percentage rate or introducing a single level market-wide cap.
The watchdog launched a review into premium finance for motor and home insurance last October saying it had been concerned about it “for some time”, adding it “may not represent fair value for some customers and that competition may not be functioning effectively”.
It was a move broadly welcomed by industry practitioners.
In an update released today, the regulator detailed it believes a commission ban would not be appropriate “as we have rules in place already around remuneration, consumer
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