When must a broking firm disclose details of any fees to a consumer according to FCA Insurance Conduct of Business rules?

The requirement for a broking firm to disclose details of any fees to a consumer before the consumer incurs any fees is designed to promote transparency and protect consumers in the insurance market. This rule ensures that consumers are fully informed of the costs associated with a service before they commit to any agreement or incur charges. By providing this information upfront, consumers can make more informed choices and avoid unexpected costs, which is essential in building trust between the consumer and the insurance provider.

This approach aligns with the broader principles of treating customers fairly (TCF) as advocated by the Financial Conduct Authority (FCA). It places the onus on the broking firm to provide clarity about their fees before any financial commitment is made, thereby enabling consumers to compare options and consider their affordability.

Other options do not align with the FCA principles; for example, disclosing fees only after agreement obscures important information that could influence a consumer's decision. Likewise, waiting until the end of a transaction or only disclosing fees upon request undermines proactive transparency, which is crucial in fostering a fair and equitable marketplace for consumers.