The FSA has confirmed group business is exempted from commission disclosure requirements laid out in PS10/13, since it was not the intention of the RDR to bring commercial group risk into its scope.
However the regulator is to do further work on transparency and disclosure for commercial markets in the new year.
In its final rules on remuneration for pure protection sales under the conduct of business sourcebook (COBS), published today, the FSA says: "We can confirm that commercial business is excluded from the requirement for disclosure for pure protection services associated with investment advice, as the rules apply to firms' dealings with consumers, rather than commercial customers."
The regulator examined the issue of commission disclosure for commercial customers in 2008 and published its conclusions in FS08/7: Transparency, disclosure and conflicts of interest in the commercial insurance market .
The statement outlined plans for ongoing supervisory action and the regulator will be carrying out further work in Q1 2011 to examine whether the customer outcomes identified in its FS have been achieved.
