The Financial Conduct Authority (FCA) is considering whether further rules and/or guidance are required to deal with the outcome of the decision of the Supreme Court in Plevin v Paragon Finance [2014] UKSC 61. In this case the lender failed to disclose payment of large commissions to both lender and broker.

The decision in Plevin made it clear that there is a ‘tipping point’ at which the level of commission becomes so high so as to create the presumption that, if the customer knew about it, there would be a material impact on that customer’s decision. The FCA is in communication with interested parties and will report later this year.

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