Very Senior Personnel must agree to any split of brokerage/commission, or any fee, with a Client. Even though the foregoing personnel shall make the final decisions they should take into account what the market would normally expect a broker to retain, taking into account the work and responsibility undertaken, and PSC’s remuneration shall not exceed such amounts without the agreement of the Client.
When requested by a Client, PSC must disclose the total amount of its remuneration including any commission or other remuneration paid to it by Insurers arising from Profit Commission, placement of any reinsurance or other rewards paid to PSC for supporting them or for any other reason.
However this will only apply to such rewards that involve the business of the Client. Such disclosures must be made in a manner that is clear, fair and not misleading and must include any payments made to any associate or business partner of PSC but not any other brokers in the chain. If the precise value of PSC’s remuneration is not known when requested then a fair and sensible estimate may be given. All such advices must be authorised by the Chief Executive Officer or the Very Senior Personnel, as applicable to your business.
Refusing to advise Clients of PSC’s remuneration or advising incorrect amounts is a serious matter and will be referred to the Chief Executive Officer and the Head of Compliance for appropriate action. This may lead to a formal warning or dismissal and the Head of Compliance may have to advise the CBI. Employees are required to give immediate written notice to the Chief Executive Officer and the Head of Compliance if they become aware of any breach of these rules.
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