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

• A. Term assurance policy.
• B. Mortgage.
• C. Fixed term deposit.
• D. Term assurance policy, mortgage and fixed term deposit.

Answer: (D)

Disclosure of commissions to a client is required whenever an intermediary receives remuneration from the product provider in connection with the arrangement. This transparency helps the client see any potential conflicts of interest and make informed decisions.

For term assurance, the adviser often earns a commission from the insurer when the policy is placed, so the client should be informed that this remuneration exists and, where possible, how it is structured.

For a mortgage, brokers or intermediaries can receive fees or commissions from the lender for arranging the loan. Disclosing this helps the client understand why a particular lender or product is being recommended and ensures there’s no hidden influence.

For fixed term deposits, the intermediary might receive a commission or fee for directing the client to a specific deposit product. Disclosure ensures the client knows about any remuneration tied to the recommendation.

Because remuneration can influence the guidance given, disclosure is required for all three scenarios.