In accordance with provision 4.58A of the Central Bank of Ireland’s September 2019 Addendum to the Consumer Protection Code, all intermediaries, must now make available in their public offices, or on their website, a summary of the details of all arrangements for any fee, commission, other reward or remuneration provided to the intermediary with whom it has agreed with its product producers.

What is remuneration?

Remuneration refers to compensation paid as a result of work undertaken on behalf of the provider and the consumer. In such instances, the value of the remuneration is directly related to the value of the goods or services sold.

What is commission?

Commission is a fee paid to an agent or employee in recognition of a service carried out. At Sheil Financial Planning, we currently operate using three commission structures.

• Single Commission Model: Where payment is made directly to an intermediary shortly after a sale has been completed. This model is based upon a percentage of the premium paid, amount borrowed, or investment made by the client.

• Trail/Renewal Model: Payments made at intervals across the lifespan of the product.

• Indemnity Commission: A payment made in advance of the commission earned. This model of commission may be subject to a clawback (if the consumer cancels the product or lapses on payment before the commission is deemed to be earned).

  In the case of life assurance, commission falls in to initial commission and renewal commission related to the premium.

  In the case of products related to pensions, commission can be fund commission, flat commission, trail commission or renewal commission.
  

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.“

Mortgages & Credit Products

Commission can be earned by intermediaries, such as Shiel Financial Planning, for arranging credit for consumers, such as a mortgage. The single, also known as standard commission model, is the most common commission model applied to the sale of mortgage products by a mortgage credit intermediary.

Clawback

If commission is paid upfront, a certain time period must elapse before it is deemed to be earned. However, if a consumer lapses or cancels their policy within a specified time, the intermediary must return commission to the product provider.

Below is a guide to the commission structure we work under.