Is the regulator over-reacting to signs that commission payments are increasing?
- Yes (89%)
- No (7%)
- Not sure (4%)
Loading ...The FMA has again put the spotlight on commission payments, saying in its 2021 annual report that it has concerns about remuneration paid to intermediaries against a backdrop of increasing payment levels.
Among the views expressed by RiskinfoNZ readers – as a result of our commission payment report – is that some insurers are paying the FAP (or the adviser direct) for the extra costs they face as a direct result of FMA regulations.
Another reader says the FMA-imposed additional compliance costs are recognised by insurance companies and that they have attempted to “…ease the financial burden on us, good on them”.
Given these, and other similar comments to our report, is the FMA right to be concerned?