Inducements and commission in GI

The FCA really need to tackle the inconsistencies between investment business and general insurance over inducements and commission.  In Plevin v Paragon Personal Finance Ltd the court ruled that failure to disclose a large commission payment to the client made the relationship between the lender and the borrower unfair.

It seems that once again that principle based rules do not work where they rely on the goodwill and positive interpretation of the industry to act within the spirit of the rules.

 

Published: May 2015
By: Anthony Smith

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