Written question asked by Roy Beggs (Ulster Unionist Party) on Wednesday, 12 November 2003, in the House of Commons. It was due for an answer on Tuesday, 18 November 2003. It was answered by Ruth Kelly (Labour) on Tuesday, 18 November 2003 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what measures are in place to stop the practice of grossing up by insurance brokers in Northern Ireland; and what plans he has to change the appropriate legislation to protect consumers from the grossing up of insurance premium commissions.

Answer: Mr. Beggs: To ask the Chancellor of the Exchequer what measures are in place to stop the practice of grossing up by insurance brokers in Northern Ireland; and what plans he has to change the appropriate legislation to protect consumers from the grossing up of insurance premium commissions. [138900] Ruth Kelly: Grossing up is a serious abuse of the market. The Government is giving the Financial Services Authority (FSA) responsibility for regulating general insurance as from 14 January 2004. The FSA is currently consulting on its rules in CP187. The FSA considers there is more opportunity for such market abuse in the commercial rather than the retail market, and therefore does not propose to introduce commission disclosure for retail customers. But, for commercial customers, it will be requiring intermediaries to disclose commission earned by them and any affiliated intermediaries if requested to do so by a commercial customer.

Secondary information

Type: Written question
Reference: 138900; 413 c725W
Session: 2002-03
Subjects: Insurance Financial Services Authority Misconduct Northern Ireland Payments Regulation
Link: View this Written question on www.publications.parliament.uk

Treasury

Secondary information

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