Undisclosed commission claims in the UK refer to instances where financial advisors or intermediaries have received commissions from product providers without properly disclosing this information to their clients. This lack of transparency can lead to conflicts of interest, biased advice, and customers potentially being sold unsuitable financial products, ultimately causing them to pay more than they should have or face unforeseen financial risks.

The issue of undisclosed commissions gained attention in the UK in the early 2010s, when it was discovered that some financial advisors and intermediaries had been engaging in secretive commission arrangements, resulting in biased advice and mis-selling of financial products. This led to a series of investigations and legal challenges, uncovering widespread misconduct and a lack of transparency in the financial services industry.

In response, the Financial Conduct Authority (FCA) introduced the Retail Distribution Review (RDR) in 2012, which implemented a set of guidelines for financial advisors to follow when disclosing commission arrangements and ensuring that their advice is unbiased and in the best interest of their clients. The FCA also established a mechanism for customers to make complaints and seek redress if they believe they have been subject to undisclosed commission arrangements.

Overall, undisclosed commission claims are a result of the complex nature of financial products and the potential for errors or misconduct by financial advisors and intermediaries. As a result, it is important for customers to carefully review their financial agreements and seek professional advice if they suspect any irregularities or have concerns about the transparency of commission arrangements.