Disclosure of commission by an intermediary to a client is required when arranging which products?

• A. Term assurance policy
• B. Mortgage
• C. Fixed term deposit
• D. All three

Answer: (D)

Transparency about how you’re paid is the core idea. When a financial intermediary arranges a product, regulators expect you to disclose any commission or remuneration you receive from the product provider. This helps the client see any potential bias in the recommendation and reduces conflicts of interest.

Term assurance policies are typically paid with commissions to the adviser by the insurer, so disclosure is a standard requirement. Mortgages often involve commissions or fees paid by lenders to brokers, which can influence the recommendation unless disclosed. Fixed term deposits can involve fees or commissions paid to the adviser through distributors, so revealing this payment is likewise expected. Since the obligation to disclose applies to any product where compensation from the provider is involved, the requirement covers all three product types.