Upheld: Other regulated complaint complaint against Tysers Insurance Brokers Limited
Financial Ombudsman decision DRN-5649022 of 2025-06-26T00:00:00+00:00. Other regulated complaint complaint against Tysers Insurance Brokers Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5649022 |
|---|---|
| Decision date | 2025-06-26T00:00:00+00:00 |
| Firm | Tysers Insurance Brokers Limited |
| Product | Other regulated product |
| Claim type | Other regulated complaint |
| Outcome | Upheld |
| Remedy | Refund of 3% work transfer fee charged for each policy year from 2015 to 2024, plus 8% simple interest per annum calculated from the date each fee was paid until the date of settlement. Tysers must provide a tax certificate if HM Revenue & Customs requires tax to be deducted from the interest. |
Summary
C complained that Tysers Insurance Broker's limited unfairly charged an undisclosed 3% 'work transfer fee' between 2015 and 2024 on top of its 13% commission for arranging commercial property insurance. The fee was only revealed to C in January 2024 when C requested a breakdown of the premium. Tysers initially refused to refund the fee, claiming it was a service fee paid by the insurer, not commission. The ombudsman found that the work transfer fee constitutes remuneration in connection with insurance distribution activity and therefore falls within the definition of commission under DISP rules, requiring disclosure when requested. The ombudsman also found that Tysers failed to justify why it was charging this additional fee on top of its standard commission, suggesting it was a duplicated charge. The complaint was upheld and Tysers was directed to refund the 3% work transfer fee for all policy years from 2015 to 2024, plus 8% simple interest per annum.
The Ombudsman's reasoning
The ombudsman found that the 3% work transfer fee constitutes remuneration in connection with insurance distribution activity and therefore falls within the definition of commission under DISP rules, requiring disclosure when requested by a commercial customer. Tysers failed to disclose this fee when C requested commission information from 2022 onwards. The ombudsman rejected Tysers' argument that the fee was paid by the insurer rather than C, noting this contradicted Tysers' earlier statement that the fee was 'properly payable and reasonably charged as part of the insurance premium'. The ombudsman found that Tysers had not reasonably explained why it was charging an additional 3% fee on top of the 13% commission, suggesting it was a duplicated fee for work already accounted for in the commission. The ombudsman applied DISP 3.5.9(3) to decide the complaint based on available information, given Tysers' failure to provide requested evidence.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Tysers Insurance Brokers Limited, all decisions | 3 | 67% |
| Other regulated complaint, all decisions | 19,202 | 17% |
| Other regulated product, all decisions | 51,105 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website