Understanding Changes in Commission Disclosure in Asset Finance: Transparency is Key

Introduction                          
 
In 2024, the landscape of asset finance evolved, particularly regarding commission disclosure. As a commercial finance broker, it's crucial to stay ahead of these changes and ensure that clients understand the new standards that promote transparency and trust in the industry.

What Are the Changes in Commission Disclosure?
 
In 2024, new regulations require brokers to provide clearer and more comprehensive information about commission payments. This means that lenders and brokers must disclose any commissions received for arranging finance, whether it’s paid directly by the lender or through other arrangements. The goal is to ensure that customers are fully aware of how brokers are compensated and how this may influence their financial decisions.
 
These regulations are a response to growing concerns about hidden fees and commission structures that can impact the financial products offered to customers. The intention behind these changes is to foster a fairer and more transparent market, where customers can make informed decisions without any confusion about the costs involved.

Why Is Transparency Important in Asset Finance?
 
Transparency between the lender, the broker, and the customer is crucial for building trust and ensuring that all parties are on the same page. Without transparency, customers may feel they’re not getting the best deal or that they’re being charged more than necessary. This can lead to dissatisfaction, disputes, and even regulatory scrutiny.
 
For brokers like us at Victor Finance, transparency is not just about complying with the law—it’s about putting our clients' interests first. Clear disclosure of commission structures helps clients understand the full cost of their asset finance deal and gives them the confidence to make decisions that best suit their business needs.

How Victor Finance Supports You in Navigating These Changes
 
At Victor Finance, we embrace these changes as an opportunity to further strengthen our relationship with clients. We are committed to ensuring that all our clients are fully informed about the financial products they’re considering, and any commission structures involved.
 
Our team is always available to discuss any questions or concerns you may have about commission disclosure or any other aspect of your asset finance agreement. Whether you’re looking to finance new equipment, expand your fleet, or secure working capital, we’re here to guide you through the process with clarity and transparency.

We’re Here to Help
 
If you have any questions regarding commission disclosure, asset finance, or how the recent regulatory changes may impact your business, don’t hesitate to get in touch with us at Victor Finance.
 
Feel free to contact us for a consultation or to learn more about how we can support your financial needs in 2025 and beyond.

As the asset finance sector adapts to new commission disclosure regulations, it’s more important than ever to work with brokers who prioritise transparency. At Victor Finance, we ensure that our clients receive clear, upfront information, empowering them to make confident financial decisions. If you have any questions or concerns, we are always ready to assist—because at Victor Finance, your success is our priority. Aim High. We’re Here to Support You.

Barry Nicol
Sales and Operations Manager
Victor Finance
barry@victorfinance.co.uk