Summary
Arthur J. Gallagher & Co. (AJG) filed an 8-K on July 28, 2009, reporting a material amendment to a previously established Assurance of Voluntary Compliance with the Office of the Attorney General of the State of Illinois. This amendment is significant as it permits the Company to accept retail contingent commissions starting October 1, 2009. Furthermore, the agreement includes a standardized disclosure form that AJG will provide to its clients regarding contingent compensation. This development allows AJG to pursue a new revenue stream while also establishing clear communication protocols with its client base regarding these commission structures. Investors should monitor the impact of these new contingent commissions on the company's revenue and profitability going forward.
Key Highlights
- 1Amendment to Assurance of Voluntary Compliance with Illinois Attorney General.
- 2Permitted to accept retail contingent commissions effective October 1, 2009.
- 3Agreement on a standardized disclosure form for contingent compensation to clients.
- 4This allows for a new revenue model related to retail contingent commissions.
- 5The disclosure form ensures transparency with clients regarding compensation structures.