Disclosure Rules To Stiffen, But Most Agents Will Keep Contingency Fee Deals Mega-brokers may lose out, but smaller firms should maintain revenue stream
Since New York Attorney General Eliot Spitzer filed a civil suit against Marsh & McLennan three months ago, the four largest public brokers in the countryalong with two major carriershave already made announcements they will eliminate their contingency-commission arrangements.
However, while these four brokers are hard at work trying to find ways to make up the revenue shortfall, it appears that in 2005 most other intermediaries could very well continue to keep their contingent-compensation practicesprovided that they offer better disclosure to clients, market observers predict.
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