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Clear Compensation

A lesson in transparency from NYs Disclosure of Broker Compensation Rule

By Matthew S. Marrone, Esq. | Updated on April 24, 2012

Brokers may be required to detail the sources of their compensation, according to a March 8 ruling by the Appellate Division of the Supreme Court of New York. In the matter of Sullivan Financial Group Inc. et al v. James J. Wrynn, Superintendent of Insurance, the courts stated that the New York Insurance Dept. was within its rights to issue a rule requiring disclosure of compensation.

Reaction to both the regulation and court decision has been mixed. It seems worthwhile to more closely examine differing viewpoints with respect to the court holding, and how the principles underlying the rule might generally apply to brokers and agents around the country.

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