Which regulation governs the broker's obligations to disclose commissions to clients?

The Fair Practices Code is the regulation that specifically addresses the obligations of brokers to disclose commissions to their clients. This code emphasizes the importance of transparency and ethical conduct in the brokerage industry, ensuring that clients are fully informed about the fees and commissions associated with the services being provided. Proper disclosure helps build trust between brokers and their clients and aligns with broader regulatory frameworks that seek to protect consumers in financial and insurance transactions.

While other options may pertain to various aspects of regulations or compliance standards in the industry, they do not directly focus on the specific obligation of brokers to disclose their commission structures. The Fair Practices Code stands out because it outlines the ethical and legal responsibilities of brokers to inform clients about potential conflicts of interest that may arise from commissions, ensuring that consumers can make informed decisions.