We, M&E Curtin Financial Services Limited t/a MC Financial, act as intermediary (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.
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.
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.
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 or trail (relating to accumulated 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.
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.
- MC FINANCIAL applies a standard up front commitment charge of €250 for the initial mortgage application process with a further €250 upon procurement of loan offer. We also charge a consultation fee of €75 for initial meeting.
- In relation to Investment Advice we reserve the right to charge a fee for our services of up to 5% of the investment amount, this is capped at €7,500 and deducted from any commission payable.
- With regard to Pension Planning we reserve the right to charge a fee of up to a max of €7,500 to review clients existing pension arrangements and make a client specific recommendation. For arranging a regular premium pension contract for a customer, we reserve the right to apply a charge of up to 25% of the first year’s annual premium. For arranging a single premium pension investment we reserve the right to charge a fee of up to 5% of the investment amount, this is capped at €7,500 and deducted from any commission payable.
- Where advice is requested for PRSAs, a flat fee of €595 will be charged for the arrangement of the pension if the pension is arranged on a ‘’nil commission basis’’ if initial commission is received this will be rebated to you in full.
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
Click on a link below to access a list of the providers that our firm deals with, which for ease of reference is in alphabetical order.
M&E Curtin Financial Services Ltd t/a MC Financial
1 Sorrel Heath
Telephone: 01 822 8022