47BDisclosure of referral fees, commissions, etc

47B Disclosure of referral fees, commissions, etc

47B Disclosure of referral fees, commissions, etc

(1) An intermediary must, before acting under an arrangement that provides for the intermediary to receive a financial incentive, take reasonable steps to ensure the consumer who will be supplied with the goods or services to which the financial incentive relates is aware of the existence of the arrangement.

(2) The regulations may provide for—

(a) what may or may not constitute reasonable steps taken by intermediaries to ensure consumers are aware of the existence of arrangements that provide for intermediaries to receive financial incentives, and

(b) any other requirements in relation to the way in which intermediaries must make consumers aware of the existence of arrangements under which intermediaries receive financial incentives.

(3) In this section—

financial incentive means—

(a) a commission or referral fee, or

(b) another kind of payment prescribed by the regulations.

intermediary—

(a) means a person—

(i) who, under an arrangement that provides for a financial incentive, arranges contracts for the supply of goods or services as an agent or refers consumers to another supplier of goods or services, or

(ii) who is prescribed by, or who belongs to a class of persons prescribed by, the regulations, but

(b) does not include a person, or class of persons, excluded by the regulations.