Landmark Court Case Highlights the Critical Importance of Commission Disclosure
The recent Court of Appeal ruling on commission disclosure is sending shockwaves through the financial services industry. This case emphasises the necessity for transparency when disclosing commission arrangements to customers. In particular, the judgment highlights the requirement for financial services firms to disclose not just that a commission is being paid but also how much and when.
For those of us operating in automotive sales, consumer credit, and general insurance, the implications are clear: businesses must implement clear, robust processes that evidence compliance with these requirements.
Transparency isn’t just about legal compliance—it’s also a vital component of building trust with customers. Ensuring that commission disclosure is handled effectively and consistently can protect businesses from legal and reputational risks.
At ComplianceTrak, we specialise in helping dealer groups and other financial services providers stay ahead of the curve. Our industry-leading compliance software and expertise in FCA regulations ensure that processes are streamlined, transparent, and above all, compliant.
As this ruling shows, the stakes have never been higher. Now is the time to review your disclosure practices, audit your compliance processes, and ensure your team understands the "how, when, and how much" of commission disclosure.
If you’d like to discuss how we can help your business adapt to these evolving requirements, feel free to reach out. Let’s ensure compliance isn’t just a checkbox but a competitive advantage.
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