We, Morrison Financial Planning Limited, act as intermediary between you, the consumer, and the product provider with whom we place your business.

The background

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 commission?

For the purpose of this document, 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.

There are different types of remuneration/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.

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 through 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.

Investments

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 (Brokers Ireland Mortgages).

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.

Fees

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.

Preferred Provider Rate

This does not apply to Morrison Financial Planning Limited.

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

-Assistance with Advertising/Branding

Maximum Commission Rates

Single Contribution Products

Initial Commission

Clawback Period

Trail Commission

Single Contribution Pension

Aviva

5%

1% p.a.

Aviva (Heritage Friends)

5%

1% p.a.

BCP

5%

1% p.a.

Irish Life

5%

0.75% p.a.

New Ireland

5%

5 years

1% p.a.

Standard Life

5%

1% p.a.

Zurich Life

5.5%

0.5% p.a.

Single Contribution PRSA

Aviva

4%

0.5% p.a.

Aviva (Heritage Friends)

4%

0.5% p.a.

BCP

4%

0.5% p.a.

Irish Life

5%

0.75% p.a.

New Ireland

4%

5 years

0.5% p.a.

Standard Life

5%

0.5% p.a.

Zurich Life

5.5%

0% p.a.

ARF/AMRF

Aviva

5%

1% p.a.

Aviva (Heritage Friends)

5%

1% p.a.

BCP

5%

1% p.a.

Irish Life

5%

0.75% p.a.

New Ireland

5%

1% p.a.

Standard Life

4%

1% p.a.

Zurich Life

5%

0.5% p.a.

Annuity

Aviva

3%

n/a

Aviva (Heritage Friends)

3%

n/a

BCP

3%

n/a

Irish Life

3%

n/a

New Ireland

3%

n/a

Zurich Life

3%

n/a

Investment Bond

Aviva

5%

1% p.a.

Aviva (Heritage Friends)

5%

1% p.a.

BCP

5%

1% p.a.

BlackBee Investments

3%

Broker Solutions

2.5%

Cantor Fitzgerald Ireland Ltd

2.25%

Investec Europe Ltd

2.25%

Irish Life

3%

0.5% p.a.

New Ireland

5%

3 years

1% p.a.

Standard Life

4%

1% p.a.

Zurich Life

5%

0.5% p.a.

Regular Contribution Products

Initial Commission

Clawback Period

Renewal/Flat Commission

Trail Commission

Regular Contribution Pension

Aviva

15%

1% p.a.

Aviva (Heritage Friends)

15%

1% p.a.

Irish Life

17.5%

5%

0.5% p.a.

New Ireland

15%

1% p.a.

Standard Life

25%

5%

1% p.a.

Zurich Life

20%

4 years

3%

0.5% p.a.

Regular Contribution PRSA

Aviva

22.5%

0.5% p.a.

Aviva (Heritage Friends)

22.5%

0.5% p.a.

Irish Life

17.5%

5%

0.5% p.a.

New Ireland

22.5%

0.5% p.a.

Standard Life

5%

5%

0.5% p.a.

Zurich Life

5%

4 years

5%

0% p.a.

Savings

Aviva

15%

1% p.a.

Aviva (Heritage Friends)

15%

1% p.a.

BCP

15%

1% p.a.

Irish Life

5.5%

5.5%

0.5% p.a.

New Ireland

15%

1% p.a.

Standard Life

15%

5 years

1% p.a.

Zurich Life

10%

4 years

1%

0.5% p.a.

Individual Protection

Yr1

2

3

4

5

6

7

8

9+

Clawback Period

Aviva

200%

30%

30%

30%

30%

30%

30%

30%

30%

2 years

Aviva (Heritage Friends)

200%

30%

30%

30%

30%

30%

30%

30%

30%

2 years

Irish Life

120%

28%

30%

28%

28%

30%

28%

28%

28%

New Ireland

200%

30%

30%

30%

30%

30%

30%

30%

30%

2 years

Royal London

200%

40%

40%

40%

40%

40%

40%

40%

40%

1 year

Zurich Life

100%

12%

12%

12%

12%

12%

12%

12%

12%

1 year

Group Protection

Death in Service

Clawback Period

Permanent Health Insurance

Clawback Period

Aviva

6%

12.5%

Aviva (Heritage Friends)

6%

12.5%

Irish Life

6%

12.5%

New Ireland

6%

12.5%

Zurich Life

6%

12.5%

 

Brokers Ireland Mortgages

Mortgages

Commission

Clawback Period

Finance Ireland

1%

3 years

Haven

1%

3 years

ICS

1%

3 years

KBC Bank

1%

3 years

Permanent TSB

1%

3 years