LOW COST FINANCIAL SOLUTIONS
We are a “low-cost financial broker” meaning that where provider commission is taken, we always take a reduced commission level. This applies to all life insurance, pension, and investment products to allow us to pass on savings to you, in the form of lower premiums and investment product charges! This in no way affects product choice and only the best and most suited market solutions from the agencies we hold, will be recommended.
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 on their website, a summary of the details of all arrangements for any commission provided to the intermediary which it has agreed with its product providers together with details of any direct fees which may be charged directly by the intermediary to the consumer.
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 and may include commission and or direct administration or advisory fees.
What is Commission?
Commission is a payment that may be earned by an intermediary for work undertaken for both provider and consumer, commission models may include:
- 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.
- Service/Renewal commission model: Further payments at intervals are paid throughout the life span of the product.
- Indemnity Commission: This 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. The typical earning period to avoid commission clawback is 5 years from policy inception.
Sustainable Finance & ESG
Our remuneration policies are consistent with the integration of sustainability risks, as all our partnered investment product providers integrate sustainability into their investment processes and consider the adverse impacts of their investments on sustainability factors.
Life Assurance/Investments/Pension Products
For insurer protection and investment products commission is divided into initial commission and renewal commission (related to premium), fund-based, or trail commission (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.
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.
Clawback is an obligation on the intermediary to repay unearned commission. A 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 the commission to the product producer.
How One Quote Receives Remuneration
One Quote Financial Brokers Limited may receive remuneration by way of provider paid commission or by way of directly invoiced fees for investment advisory, complex protection cases, application alteration, or early cancellation fees on the basis outlined below:
Where provider commission is paid to us, it is on a reduced basis to allow us to pass on savings to you the client by way of cheaper protection premiums and reduced investment and pension fund management charges.
Where we receive a recurring commission, this may form part of the standard remuneration for initial advice provided on Protection business/life insurance products, and for a comprehensive level of ongoing support provided to you on Investment and Pensions business, details of this are provided below.
With regard to Protection products which include Mortgage Protection, Life Insurance, Serious Illness, and Income Protection, where provider “initial commission” is paid to us, it is on a reduced basis to allow us to pass on savings to you the client by way of cheaper fixed premiums.
The level of once-off initial commission paid is based on a % of the equivalent of the first years’ annual premium due and may be clawed back by the product provider, where the policy is cancelled within the first 2 years of policy inception, or in the cases of Income Protection in the first 5 years.
Renewal commission to a maximum of 3% of the annual premium may apply.
Pensions, Investments & Savings
With regard to Pension, Investment & Savings products which include individual and group pensions, post-retirement AMRF’s/ARF’s and educational savings plans, where provider “initial commission” is paid to us, it is on a reduced basis to allow us to pass on lower investment charges to the client.
The level of once-off initial commission paid is based on the lump sum invested or the equivalent annual premium for monthly contribution products and may be clawed back by the product provider, where the policy is cancelled within the first 5 years of inception.
With the exception of Non-Standard advice-based PRSA’s, we do not take any renewal commission.
In the case of Personal Pensions, Executive Pensions, ARFs, Retirement Bonds, and Lump Sum Investments we will in most cases receive a maximum fund-based service commission of 0.25% PA, for ongoing investment updates, advice, and support.
The maximum commission levels made available to all intermediaries by our product providers are outlined via our product provider links below.
Our Reduced Commission Rates
Unlike the majority of intermediaries, we never take the maximum available commission on any protection, pension, savings, or investment product, but always apply reduced commission rates, to reduce your long-term costs.
Where possible we have included the actual commission levels that we receive via these links, (with the exception of Aviva) but should you have any questions please do not hesitate to contact us.
Where we are not remunerated by way of solution provider commissions, we will in certain circumstances charge a direct Administration or Advisory Fee to cover our time and expertise. We charge a flat fee, for a full Personal Financial Review, the cancellation of applications already submitted, and in the case of certain investment-related advice, dependent on the complexity of the assistance and advice required, with these charges detailed below:
1. Full Financial Review
Our fee is €500.00 to have a Senior Qualified Financial Advisor carry out an impartial full financial review at your request.
2. Protection Application – Non Policy Release
We charge a fee for Mortgage Protection and Term Life Insurance applications, where a discounted premium application is returned and underwritten, but for whatever reason you the client instruct us not to proceed or the life underwriters are unable to offer acceptable premium terms. The fee in such a circumstance is: €150.00 invoiced directly.
3. Investment Consultations & Reports
There is no fee for an initial personal consultation relating to an investment, pension, or post-retirement ARF inquiry. Fees may apply however as follows:
Nil commission PRSA
Where a nil commission PRSA has been arranged, a set-up fee of €350.00 – €500.00 may apply.
Personal Pensions & Executive Pension Plans
For the provision of a low-cost market comparative of leading providers’ products and funds aligned to your personal risk profile, a charge of €250.00 applies which includes plan quotations and Revenue maximum funding reports, where appropriate.
Approved Retirment Funds – ARFs
For the provision of a low-cost market comparison of leading providers’ products and funds aligned to your personal risk profile, a charge of €150.00 applies. For optional assistance with the completion of member option forms on transferring scheme funds a fee of €150.00 also applies.
Ad hoc Investment Portfolio Reviews
Investment reviews outside of automatic annual reviews will incur a fee amounting to €150.00 across all pension plans, lump-sum investments, and ARFs.
2. Investment Application – Non Policy Release
We charge a fee for Pension, Investment & ARF applications, where an application is returned, but for whatever reason you the client instruct us not to proceed. The fee in such a circumstance is: €350.00 invoiced directly.