Sicsic warns brokers leaseholder commission disclosure sets a ‘precedent’

Michael Sicsic, managing partner of Sicsic Advisory, urged brokers to review all their remuneration arrangements following the Financial Conduct Authority’s report today revealing incompetence and unjustifiable remuneration in the buildings’ insurance market.

Sicsic stressed that the FCA’s announcement of brokers facing a near ban on paying commissions to third parties and demanding full commission disclosure to customers is “big news” for intermediaries.

He also cautioned that a number of interventions could change the fundamentals of brokers’ business models.

Sicsic warned that while insurance brokers may be relieved that this latest FCA paper stops short of a cap on commissions, this could potentially follow from the Department for Levelling Up