Opposition to forthcoming legislation on the disclosure of charges and commissions relating to insurance and pension products is mounting amid concern that it could drive small brokers out of the marketplace.

The Professional Insurance Brokers' Association, which has 470 members, believes the legislation contains inequities in the treatment of independent brokers compared to large insurance companies and the life assurance arms of the banks on the extent of disclosure required.

Fine Gael's spokesman on enterprise, trade and small firms has echoed this view. In a statement released yesterday, Mr John Perry said the large banks and tied insurance companies would take over the market while small operators would be wiped out.

"Large firms and banks will be able to hide their costs and commissions down the line in other charges while small, independent brokers will not," he said.

He called on the Government to make it mandatory for all banks and large financial institutions to make a full disclosure of all charges so there was total transparency for the consumer. Mr Perry also wants an authority set up to monitor the implementation of any new legislation in the industry. He plans to raise these issues next Wednesday during Dail question time.

The brokers' association welcomes the thrust of the legislation but says it could result in significant job losses.

"This legislation will mean less choice for consumers as insurance business will gravitate towards the larger market players, driving the smaller brokers out of business," association's secretary, Mr Diarmuid Kelly, said.

It points to two critical flaws in the legislation: that banks will be able to exclude most of their branch costs from the figures while certain advertising expenses can be excluded; and that there is no authority to police the implementation of the rules.

The disclosure regulations are still in the Parliamentary Draftsman's Office, where they undergo examination and legal drafting, but the Government aims to have them operating from September 1st.

The Department of Enterprise, Trade and Employment has sought advice from the Society of Actuaries in an attempt to frame the regulations in a non-discriminatory fashion. Mr Noel Treacy, Minister of State at the Department, recently told the Dail it had devised a formula which should achieve equivalence of disclosure, as far as was practicable, between the different distribution channels.