Remuneration
We act as intermediary between you, the consumer, and the product provider with whom we place your business.
The background
We are required to make available in our public office, or on our website, a summary of the details of all arrangements for any fee, commission, other reward or remuneration provided to us which we have agreed with product producers.
What is commission?
For the purpose of this document, remuneration is the payment earned by us for work undertaken on behalf of our consumer. The amount of remuneration is generally directly related to the value of the products sold.
We do not charge a fee for our service.
Details of Commission Range
Our firm’s commission options are displayed as a range, showing the maximum amount which can be received. The level of commission depends on individual circumstances, based on the following factors:
- The firm’s discretion
- Whether the level of commission is negotiable
- Client relationship
- Length / Term of the policy or contract
- Size of the investment
- Commercial decision
- Complexity of the case
- Product constraints / rules set by the product provider
There are different types of remuneration/commission models:
Single commission model: where payment is made to us 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. This allows us to review our client’s business and deal with any client queries, without having to invoice clients a fee directly.
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 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).
Life Assurance products fall into either individual or group protection policies. Examples of products include Life Protection, Regular Premium Life Assurance Investments, Single Premium (lump sum) Insurance-based Investments, and Single Premium Pensions.
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. Clawback is on a pro rata basis.
Fees
We do not charge a fee.
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 educational seminars
Maximum Commission Rates
|
Mortgage Products |
Initial commission |
Clawback Period |
Trail commission |
|
Mortgage Lenders |
1% of mortgage amount |
36 months |
0 |
Commission is the same regardless of lender or product selected.
As a consumer you get the same rate by working with our firm as by going to one of our panel lenders directly. To note there are lenders on our panel that you cannot access directly as a consumer.
The commission payment received by our firm is payable by the provider and relates to the advice our team provides you from enquiry to completion of your mortgage.
While we have relationships with product providers our role is to find you the best product to meet your individual needs and requirements.
|
General Insurance – Buildings & Contents |
Initial commission |
Clawback Period |
Trail commission |
|
Insurers |
Up to 20% of annual premium |
12 months |
0 |
Should you have any queries about our remuneration please contact your advisor at doddl or email [email protected]