Our Remuneration

We, Financial Planner act as intermediary between you, the consumer, and the product provider

with whom we place your business.

The background

Pursuant to provision 4.58A of the Central Bank of Ireland’s September 2019 Addendum to the

Consumer Protection Code, all intermediaries, must make available in their public offices, or on

their website if they have one, a summary of the details of all arrangements for any fee,

commission, other reward or remuneration provided to the intermediary which it has agreed with

its product producers.

What is commission?

For the purpose of this document, remuneration is the payment earned by the intermediary for

work undertaken on behalf of both the provider and the consumer. The amount of remuneration

is generally directly related to the value of the products sold.

There are different types of remuneration/commission models:

Single commission model: where payment is made to the intermediary shortly after the sale is

completed and is based on a percentage of the premium paid/amount invested/amount

borrowed.

Trail/Renewal commission model: Further payments at intervals are paid throughout the life span

of the product.

Indemnity commission

Indemnity commission is the term used to describe a commission payment made before the

commission is deemed to be ‘earned’. Indemnity commission may be subject to a clawback (see

below) if the consumer lapses or cancels the product before the commission is deemed to be

earned.

Other forms of indemnity commission are advances of commission for future sales granted to

intermediaries in order to assist with set up costs or business development.

General insurance products

General insurance products, such as motor, home, travel, health, retail or liability insurance, are

typically subject to a single or standard commission model, based on the amount of premium

charged for the insurance product.

Profit Share arrangements

In some cases, the intermediary may be a party to a profit-share arrangement with a product

provider and will earn additional commission. Any business arranged with these product

providers on a client’s behalf will be placed with the product provider because that product

provider is at the time of placement, the most suitable to meet the client’s requirements, taking all

the client’s relevant information, demands and needs into account.

Life Assurance/Investments/Pension products

For Life Assurance products commission is divided into initial commission and renewal

commission (related to premium), fund based or trail (relating to accumulated fund).

Trail commission, bullet commission, fund based, flat commission or renewal commission are all

terms used for ongoing payments. Where an investment fund is being built up though an

insurance-based investment product or a pension product, the increments may be based on a

percentage of the value of the fund or the 1 annual premium. For a single premium/lump sum

product, the increment is generally based on the value of the fund.

Life Assurance products fall into either individual or group protection policies and

Investment/Pension products would be either single or regular contribution policies. Examples of

products include Life Protection, Regular Premium Life Assurance Investments, Single Premium

(lump sum) Insurance-based Investments, and Single Premium Pensions.

Investments

Investment firms, which fall within the scope of the European Communities (Markets in Financial

Instruments) Regulations 2007 (the MiFID Regulations), offer both standard commission and

commission models involving initial and trail commission. Increments may be based on a

percentage of the investment management fees, or on the value of the fund.

Credit Products/Mortgages

Commission may be earned by intermediaries for arranging credit for consumers, such as

mortgages. The single, or standard, commission model is the most common commission model

applied to the sale of mortgage products by mortgage credit intermediaries (Mortgage Broker).

Clawback

Clawback is an obligation on the intermediary to repay unearned commission. Commission can

be paid directly after a contract is concluded but is not deemed to be ‘earned’ until after a

specified period of time. If the consumer cancels or withdraws from the financial product within

the specified time, the intermediary must return commission to the product producer.

Fees

The firm may also be remunerated by fee by the product producer such as policy fee, admin fee,

or in the case of investment firms, advisory fees.

Preferred Provider Rate

none

Other Fees, Administrative Costs/ Non-Monetary Benefits

The firm may also be in receipt of other fees, administrative costs, or non-monetary benefits such

as:

None