Commission Disclosure April 2020
We, MyMortgages Ltd.,trading as MyMortgages.ie, Mortgages4Her act as intermediary (Broker) between our consumers and the product provider with whom we place business.
Pursuant to provision 4.58A Commission Summary Regulation CP116 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 Providers.
What is Remuneration?
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.
What is Commission?
Commission is payment that may be earned by an intermediary for work undertaken for both provider and consumer. There are different types of remuneration and commission models:
- Single Commission model: Single Commission is 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.
- Trail/Renewal commission model: Trail / Renewal are 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.
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 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 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.
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.
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.
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. Include arrangements etc.
Other Fees, Administrative Costs/ Non-Monetary Benefits
The firm may also be in receipt of non-monetary benefits such as:
- Attendance at product provider seminars
- Assistance with Advertising/Branding
See below a list of the providers that our firm deals with, which for ease of reference is in alphabetical order.
- AvantCard DAC t/a Avant Money: 1%
- Dilosk DAC t/a Dilosk & ICS Mortgages: 1%
- Finance Ireland Credit Solutions DAC: 1%
- Haven Mortgages Ltd: 1%
- KBC Bank Ireland plc: 1%
- Permanent TSB plc: 1%
- The Governor and Company of the Bank of Ireland: 1%