Commission Disclosure
Introduction
If a credit broker (including a motor dealer) receives a commission then The Financial Conduct Authority expects [under CONC 4.5.3R] that any intermediary disclose the existence of commissions, fee’s or other remuneration payable, in good time before a credit agreement or consumer hire agreement is entered in to. Discretionary commission models have been banned by the FCA as of the 28th January 2021.
CONC 4.5.4R goes on to say that:
At the request of the customer, a credit broker must disclose to the customer, in good time before a regulated credit agreement or a regulated consumer hire agreement is entered into, the amount (or if the precise amount is not known, the likely amount) of any commission or fee or other remuneration payable to the credit broker by the lender or owner or a third party.
The Financial Conduct Authority has made it clear that “commission” means any financial consideration.
What does the Murray Group do?
Murray Group offers products and services from a limited number of finance provider with whom we have commercial agreements in place. If a customer decides to take out an agreement with one of those finance providers, the finance provider will typically pay Murray Group a commission for the introduction. This commission does not affect the amount the customer pays on their agreement and any interest rate is set by the lender.
Murray Group will always provide its customers with product information enabling them to make an informed choice about how to proceed.
Murray Group maintains a policy of transparency regarding commission disclosure requests. If commission earnt could have a material impact on a customer’s transactional decision, this will be disclosed up front.
Where a retail customer requests disclosure of potential commission earnings from finance providers by Murray Group regarding the specific introduction of the deal under construction (before conclusion), under Consumer Credit Directive rules they are entitled to this information.
Murray Group will willingly provide this information to all customers.
Process
The existence of commission is communicated to all of Murray Group’s customers prior to taking a customer application. This is disclosed both in writing on Murray Group’s Initial Disclosure Document on submission of an enquiry and then again prior to signing any contractual information.
Should a customer wish to understand the potential amount or the likely amount of commission payable by the lender, owner or third-party in relation to the finance they are taking out then this will be provided willingly in writing in line with the company’s commission disclosure policy.
What to do if you would like to request Commission Disclosure?
In-line with legislation, if you would like Murray Group to disclose any potential commission, please make your request via the Group website page.
Your request, once made, will be actioned by the Compliance department. A record of all commission requests and responses will be retained.
Alternatively, you can also contact us via the following methods:
In writing – Murray Group, 44 Millbay Road, Plymouth, PL1 3FQ
By e-mail – compliance@murray-group.co.uk
By Phone – 01752 668351
If we cannot settle things to your satisfaction directly you may be entitled to refer your complaint on to the Financial Services Ombudsman Service or other arbitration & dispute resolution scheme. Details on how to contact will be provided on our final response.
Murray (Plymouth) Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486). Permitted activities include advising on and arranging general insurance contracts and acting as a credit broker not a lender. We can introduce you to a limited number of finance providers and may receive a commission from them for the introduction. All finance applications are subject to status, terms and conditions apply, UK residents only, 18s or over, Guarantees may be required.
Registered Companies No/Address: United House, 44 Millbay Road, Plymouth, Devon, PL1 3FQ (04172342)
Commission disclosure policy
We are a credit broker and not a lender. We can introduce you to a limited number of lenders and their finance products which may have different interest rates and charges. We are not an independent financial advisor. We may advise you on the products, subject to your personal circumstances, though you are not obliged to take our advice or recommendation.
We do not charge you a fee for our services. Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The lenders we work with could pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.
Fixed rate approach
The firm must indicate the extent of its powers and whether it works exclusively with one or more lenders or works independently.
- If the firm works with more than one lender, it must explain whether the commissions paid by the other lenders would vary and whether the amount payable by the customer is affected by the commission the firm receives.
- The firm must explain the nature of the commission, including how the commission