The letter from Michael Gove, Secretary of State for Levelling Up, Housing & Communities, to Nikhil Rathi of the FCA, expresses outrage over findings regarding broker remuneration in multi-occupancy residential buildings insurance. It shows a 40% increase in broker remuneration over three years, totaling £80 million, without evidence of fair value, burdening leaseholders with opaque costs. Gove intends to ban commissions for property managing agents, landlords, and freeholders on buildings insurance, replacing them with transparent fees. He urges the FCA to take immediate enforcement action against brokers and managing agents not demonstrating fair value in their commissions. The letter highlights the need for industry transparency and fair practice enforcement.
For more detailed information, you can read the full letter here.
