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3-4) \u2013 the broker/dealer should disclose to the customer the existence and nature of any commission arrangement with a lender and how this may affect the amounts payable by the customer. They should disclose this prominently and in good time before the customer decides whether to proceed with their agreement.
Is full commission disclosure mandatory?
The ultimate sanction is probably that full disclosure of commission at the point of sale is made mandatory. \u201cIt may already be too late to avoid this, but the industry could certainly attempt to pre-empt any FCA action.\u201d
How should commission be disclosed to a customer?
The broker / retailer should disclose to the customer, prominently and in good time before the customer decides whether to proceed with their agreement, the existence and nature of any commission (or other remuneration) arrangement with a funder and how this may affect the amounts payable by the customer.
Do I have to disclose commission?
A firm must disclose to the client the existence, nature and amount of the fee, commission or non-monetary benefit or the essential details in summary form, and must undertake to provide further information at the request of the client.
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