Pursuant to provision 4.58A of the Central Bank of Ireland’s September 2019 Addendum to the Consumer Protection Code, all Brokers, 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 Broker which it has agreed with its product producers.
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.
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.
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.
Moneytree Finance Ltd charge a fee of €250 once off Mortgage application fee.
This fee is payable before an application submitted to the lender. This application fee is paid directly to Moneytree Finance Ltd by the customer , Moneytree Finance will issue a receipt to the customer once payment is received.
Moneytree Finance Ltd may receive up to 1% (or whatever maximum is applicable) of the loan for arranging mortgage finance. This commission is paid by the mortgage lender