Commission Summary Document (March 2020)
We, MacCourt Financial Planning Limited act as intermediary (Broker) 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.
Our Remuneration Policy
MacCourt Financial Planning Ltd. is a fee-based advisor. If this structure does not suit, we may transact business on a commission basis. Where no / insufficient commission is earned, a consultancy / administration charge will apply at the rate per hour charged for fee-based advice for the provision of broad-based advice regarding life assurance, pensions and investments. Fees are charged on a time spent and disbursements basis. In determining the rate and any additional charges, factors such as specialist skills, complexity, value, risk and urgency will be considered.
If we arrange a product for you with a Product Producer, with whom the firm holds an agency appointment, the fee charge may be offset by initial commission payable by the Product Producer.
Where the commission payable by the Product Producer is greater than the fee charge, the balance will be retained by the firm and where the commission payable is less than the fee charges the balance will be payable by the client.
Occasionally we receive volume override commissions. Override commissions are not credited to individual fee accounts; however, they only amount to approximately 1% of overall income.
What is commission?
For the purpose of this document, commission is the payment earned by the intermediary for work undertaken on behalf of both the provider and the consumer. The amount of commission is generally directly related to the quantity or value of the products sold.
There are different types of 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 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.
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.
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.
Other Fees, Administrative Costs/ Non-Monetary Benefits
The firm may also be in receipt of non-monetary benefits such as:
- Attendance at product provider seminars
Below is a list of the providers that our firm deals with, which for ease of reference is in alphabetical order. There is a link at the end of this document to commission rates per provider (where applicable).
| Aviva
Brewin Dolphin / Investec Cantor Fitzgerald/Merrion Investment Conexim Advisors Ltd Davy Select Gold Investments Goodbody Stockbrokers Harcourt Life
|
Harvest Financial Services
Irish Life Assurance JLT KBC Bank Ireland plc. New Ireland Newcourt Retirement Fund Managers PTSB
|
Quilter Cheviot
Royal London Scottish Mutual Intl. Standard Life TMF Group Quest Zurich Life
|
Commission / Fee Agreement
In order to establish and maintain a client fee account, generally a minimum fee income of €1,200 per annum is required. We may waive the minimum fee charge at our discretion.
It is our practice to charge fees on a rate per hour basis for initial consultations and reports, particularly where no / insufficient supporting business is completed.
Our time costed fee structure offers what we believe is the most transparent charging structure in the Irish marketplace where a full reconciliation with detailed timesheets is issued quarterly, or more frequently on request. A breakdown of commissions received by MacCourt Financial Planning is included in our account reconciliations. Commissions are credited to a notional client account reducing or eliminating any fees due. In the absence of adequate commission earnings, we will invoice clients for any balance.
Where additional outlay is incurred (e.g. courier costs, travel, accommodation, third party professional fees), these are normally added to the clients account and invoiced accordingly.
It is not our practice to deliberately build up substantial credits on client fee accounts and if such a surplus arises, we will endeavour to complete future business on a nil / reduced commission basis to absorb any surplus.
The rate of commission on various products purchased through our office varies from time to time. At the time of writing, typical commissions credited to fee accounts are as follows:
- Deposits (Permanent TSB/KBC): nil commission
- Stockbroker accounts: variable
- Unit linked bonds (with most insurers): up to 3% year one and up to 0.5% per annum thereafter
- Pension Plans: up to 5% year one and up to 0.5% per annum thereafter
- Term / Critical Illness / Permanent Health Insurance: up to 90% year one and up to 3% per annum thereafter
We charge for all financial advice and arranging / servicing of financial products.
The company will maintain a notional client account for the purpose of charging fees for work undertaken on the client’s behalf. Fees are calculated based upon a rate per hour plus outlay, if relevant. Regular statements of account will be issued by the company.
Any new business sales commissions received by the company derived from products purchased by the client on the advice of the company are credited to the clients’ account. If insufficient commission earnings are made, the company may at its sole discretion invoice the client for any balance of fees remaining on the client account and payment will be made to the company by the client within 30 days. In accordance with a Revenue Commissioner’s directive and Central Bank regulations, surplus commissions cannot be returned to the client. Commission credits not used within 5 years are retained by the company and are removed from the notional client account. If insufficient commission earnings are made, the company may at its sole discretion invoice the client for any balance of fees remaining on the client account and payment will be made to the company by the client within 30 days.
This agreement can be cancelled at any time by written notification from either party. Any fee outstanding will then become payable immediately by the client to the company. Any surplus will be retained by the company
Present hourly rates are set out below. Fee rates will increase by CPI on the 1st January each year, any change above CPI will be subject to notice. Presently there are no VAT implications for fees charged in relation to agency services. This may change in the future.
| Category |
EURO rate per hour |
|
| Consultancy* |
€287 to €575(average €410) |
|
| Administration |
€109 |
|
| Secretarial |
€98 |
|
* Depending on seniority / experience of the staff member
Any outlay is in addition to the above. Minimum fee €1,200 p.a.
Currently we do not receive any commissions from the following companies with whom we hold agencies
| Cantor Fitzgerald Merrion
Gold Investments Harvest Financial Services
|
Harcourt Life
KBC Bank Ireland plc. PTSB
|
The following is a list of companies that we may agree commission / fee sharing with on a case by case basis with the client prior to business placement.
| Brewin Dolphin / Investec
Cantor Fitzgerald/Merrion Investment Conexim Advisors Ltd
|
Goodbody Stockbrokers
JLT Newcourt Retirement Fund Managers
|
Quilter Cheviot
Quest Retirement Solutions TMF Group
|
Links to provider documents:
CPC Commission Summary Aviva March 2020
CPC Commission Summary Irish Life March 2020
CPC Commission Summary Newcourt March 2020
CPC Commission Summary New Ireland March 2020
CPC Commission Summary Zurich Life March 2020
CPC Commission Summary Royal Life March 2020
