ICOB 4.5 Excessive charges to retail customers

When determining whether a charge is excessive, an insurance intermediary should consider:

1. (1)

   the amount of its charges for the services or product in question, compared with charges for similar services or products in the market;

2. (2)

   whether the charges are an abuse of the trust that the retail customer has placed in the insurance intermediary; and

3. (3)

   the nature and extent of the disclosure of the charges to the retail customer.

In assessing whether an insurance intermediary's charges are excessive, the FSA will take account of the charges imposed by insurance intermediaries of similar size and that conduct a similar volume of business.

ICOB 4.5.1 R does not apply to premiums, but does cover fees (including any fees that an insurance intermediary charges where it receives no commission from an insurer in respect of the contract of insurance).