Chief Executive at FEIFA / FECIF Secretary General
Transparency not commission is the real key for 2017 and beyond
A number of industry commentators keep stating that it’s now all about the end of commission on a global basis – but is it, really? We all know of the switch to fees in the UK, and also a small number of other locations around the world, but certain other jurisdictions have also been quoted as moving in that direction, only for regulators in those countries to avoid such an approach.
Let’s take South Africa for instance. Many have reported that it’s “RDR” is due to commence this year – but, on its own, this terminology is misleading. I have even read some commentaries stating that commission will be banned, when it seems quite plain to me that the regulator there (the FSB) is moving towards capping commission levels, which is somewhat different of course.
Others have pointed to the “ban” of commission across the UAE, only for the Chief Executive of the Dubai Financial Services Authority (DFSA) to state categorically that it believes there is no need to take such a step there. It is true that the Dubai Insurance Authority recently announced such a ban, but...