Our remuneration. Key information about our fees, costs and services.
We, “Nelson Life” act as intermediary (Financial Broker) between you, the consumer, and the product provider with whom we place your business.
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 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.
We will discuss the options available to you and these include:
- commission and other payments from product producers or lenders on the completion of business (see information attached relevant to each to provider below).
- payment in full for our services by means of a fee (see table below).
- payment for our service(s) via a combination of the above
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 different 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. This could be 0 years to 5 years from the start date of the contract and/or date of investment, if additional monies invested.
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 commission or trail commission (relating to accumulated fund). This is taken from either the monies you invest and/or the value of your 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 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.
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 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
Professional fee(s) per hour
- Life insurance, specified serious illness, income protection/salary protection & cancer cover: We are typically remunerated by a commission for these product categories. If agree payment for our services by means of a fee guide rates as follows. Principals/directors between EUR 175.00 to EUR 250.00 per hour, Account Executive/QFA EUR 145.00 per hour and Support Staff EUR 100.00 per hour.
- Investments & Pensions: Principals/directors between EUR 175.00 to EUR 250.00 per hour, Account Executive/QFA EUR 145.00 per hour and Support Staff EUR 100.00 per hour.
- PRSAs: Principals/directors between EUR 175.00 to EUR 250.00 per hour, Account Executive/QFA EUR 145.00 per hour and Support Staff EUR 100.00 per hour.
Our up to date scale of fees and terms of business is available below or you can contact us directly – firstname.lastname@example.org
We will provide an estimate for the costs of any advice/project in advance.
Preferred Provider Rate
Nelson Life are a member of Brokers Ireland. Brokers Ireland’s is the leading representative body for Insurance brokers with a combined strength of over 1,200 firms representing both general insurance and financial brokers throughout Ireland. As a member of this group we avail of preferred commission rates/special offers/indemnified commission payments/business buy out at retirement from the following; AVIVA Life and Pensions, Irish Life, New Ireland, Zurich Life, Standard Life and Royal London. As a member of the Trusted Advisor Group we are currently also able to avail of reduced pricing on the Royal London Insurance DAC ‘Whole of Life Insurance Plan’ (time limited offer).
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:
- Attendance at product provider seminars
- Industry Educational Seminars
- Use of Product Providers resources – e.g. Actuarial, Tax Advisors, Pension Legal, Underwriting, Fund Management, Fund X-Ray tools, Investment Analysis and Marketing.
- Continuous Professional Development (CPD) events
- Assistance with Co-branded literature and client communication
- Product Provider hospitality/meetings where CPD/Product Education related
Product Provider Appointment
Nelson Life is authorised to receive and transmit orders to product producers from whom a written letter of appointment is held, these providers include:
Life Insurance Providers
Investment Article 3 / MIFID Providers
or copy this address into your browser https://cantorfitzgerald.ie/client-services/fees-and-charges/
Independent Trustee Company Limited
Wealth Options Limited
Broker Ireland Network Services Limited including; Haven / AIB Mortgages, Banco Sabadell S.A., BNP Paribas Personal Finance, Dilosk dac, Galway County Council, Dublin County Council, Pepper Finance Corporation Ireland dac & PTSB Mortgages
*We are currently working to update this information on our website.Please check back soon. Last edit 30 Mar 2020.
Terms of Business link here.