Delivering exceptional service, expert advice and the most competitive solution costs. We get paid via plan provider commission, or in certain limited circumstances through client fees.
Our Payments
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 on their website, a summary of the details of all arrangements for any commission provided to the intermediary to 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.
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 or direct advisory fees.
Commission is a payment that may be earned by an intermediary for work undertaken. It is paid by the product provider to the intermediary, with higher commission options increasing client costs and vice versa.
Details of Commission Range
Our firm’s commission options are displayed as a range, showing the maximum amount that can be paid to all financial intermediaries. Whereas most firms will strive to take maximum commission levels and in particular high levels of long term trail commission, One Quote Financial brokers limit commission in our clients favour.
There are different types of commission models:
Initial/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.
Renewal/service commission model: Further payments at intervals are paid throughout the life span of the product.
Trail/ongoing advice model: Annual flat rate commission added to the annual management charge on investment-based products including pension plans.
Earned Commission Model.
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.
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.
We take due care so that our internal remuneration policy with respect to investment or insurance advice on insurance-based investment products (‘IBIPs’) promotes sound and effective risk management in relation to sustainability risks and does not encourage excessive risk-taking with respect to sustainability risks.
When assessing products, we will consider the different approach taken by product providers in terms of them integrating sustainability risks into their product offering. This will form part of our analysis for choosing a product provider.
For insurer protection and investment products, the 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 commissions. 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.
Remuneration through commission or fees.
With regard to protection policies, 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 discounted fixed premiums.
The level of once-off initial commission paid is based on a % of the equivalent of the first year’s 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.
With regard to Pension, Investment & Savings products which include individual and group pensions, post-retirement ARF, 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.
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 long-term support.
We do not take any renewal commission, meaning 100% net investment allocation always applies.
Unlike One Quote Financial Brokers, many financial brokers and advisors, may choose to take maximum commission levels form insurance company product providers resulting in higher costs to you the consumer. View the link below to view these maximum commission rates.
Maximum Commission Rates
Where we are not remunerated by way of solution provider commissions, for our services which you have chosen to engage, we will charge a fee to cover our time and expertise. VAT does not apply.
1. Protection
This includes the processing and underwriting of all protection-related applications returned by you the client, where you choose not to proceed for any reason to the policy release stage, or you are declined cover.
Where we do charge fees, these will be charged on an hourly rate basis:
Current flat fee: €150.00 per hour.
2. Self-directed – Execution Only Pensions & ARFs
Suited only to high-net-worth individuals with significant investment market knowledge.
Our clients pay a once-off setup fee amounting to €5,000 and an annual administration charge of €500.00.
3. Occupational Pension Schemes
Onboarding new member consultations are charged at €200.00 per new entrant. Annual renewal fees amount from: €500.00 to €1,500.00 depending on scheme size.
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OneQuote Financial Brokers,
11 James’s Terrace, Malahide,
Co. Dublin, K36 CV08
One Quote Financial Brokers is regulated by the Central Bank of Ireland no: 459006.
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