Govt panel report on intermediaries' commission coming shortly

The panel looking into commission structure across financial products will meet intermediary bodies for the final round of consultation on March 24-25.
There are various classes of financial products which are having different commissions.
The committee, which has already met two times in past, is examining if there could be some kind of parity in commission structure for those products.
"We are holding final round of consultation with all the stakeholders on March 24-25 to get their views on various aspects related to the commission/incentive structure of the distributors of financial products," former union finance secretary Sumit Bose told PTI.

The committee, which had been set up by finance ministry in November last year, will be preparing its recommendations on the issue after the forthcoming meeting was over, he added.
Association of National Exchanges members of India (ANMI), a representative body of 850 stock brokers across the country and one of the invitees for the forthcoming meeting, has pleaded that there should be an increase in its minimum brokerage amount.

Insurance Brokers' Association of India (IBAI), which will be providing the industry's views before the panel on the day, also feels that insurance brokers should earn higher fees.
"The discount being offered by the general insurance companies currently is too high due to detariffication (freedom of pricing) and cut-throat competition among them. In some cases like fire and property, there is up to 95 per cent of discount. Our income has drastically reduced due to this. We demand to be paid reasonably," IBAI president S Kadel said.

At present, various financial products have varying incentive structures regulated by different financial sector regulators.
The committee after studying the prevailing incentive structure among various financial products would suggest measures to rationalise the incentive structure across financial products.
It would suggest policy measures such that differential regulatory norms do not favour any particular financial product and prevent mis-selling.
The study would also address issues with respect to hidden costs and identical financial products under different regulatory jurisdiction.