We, Pure Finance 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.
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.
Please Note
The below commission guidance section gives indicative values across every product provider and every product advised whereby a commission or fee is received within our business. This is the maximum our Brokerage will take and is subject to change, in certain cases our Brokerage may take a different remuneration than the enclosed percentages/amounts. This will be disclosed to each client as per the Central Bank Consumer Protection Code regulations, on a client by client basis.
What is a Fee?
- A fee is a payment for professional services and expertise.
- A fee can be paid by our client directly for the professional services we provide. The amount of any fee will be discussed and agreed, with our client, in advance of all transactions
and/or
- Our Clients have the option to pay for the professional services we provide by way of a combination of commission and fees which we will discuss and agree in advance of all transactions.
Further detail on the providers we work with, the products we sell and the maximum commissions available to us are outlined below.
Maximum Commission Rates
| Single Contribution Products | Initial Commission | Clawback Period | Trail Commission |
|---|---|---|---|
| Single Contribution Pension | |||
| Aviva | 5% | 1% p.a. | |
| Friends First | 5% | 0.75% p.a. | |
| Irish Life | 5% | 0.75% p.a. | |
| New Ireland | 5% | 5 Years | 1% p.a. |
| Standard Life | 5% | 1% p.a. | |
| Wealth Options Limited | 3% | 0.5% p.a. | |
| Zurich Life | 5.5% | 0.5% p.a. | |
| Single Contribution PRSA | |||
| Aviva | 4% | 0.5% p.a. | |
| Friends First | 7.5% | 0.25% p.a. | |
| Irish Life | 5% | 0.75% p.a. | |
| New Ireland | 7% | 5 Years | 0.5% p.a. |
| Standard Life | 5% | 0.5% p.a. | |
| Wealth Options Limited | 3% | 0.5% p.a. | |
| Zurich Life | 5.5% | 0% p.a. | |
| ARF / AMRF | |||
| Aviva | 5% | 1% p.a. | |
| Friends First | 5% | 0.75% p.a. | |
| Irish Life | 5% | 0.75% p.a. | |
| New Ireland | 5% | n/a | 1% p.a. |
| Standard Life | 4% | 1% p.a. | |
| Wealth Options Limited | 3% | 0.5% p.a. | |
| Zurich Life | 5% | 0.5% p.a. | |
| Annuity | |||
| Aviva | 3% | n/a | |
| Friends First | 3% | n/a | |
| Irish Life | 3% | n/a | |
| New Ireland | 3% | n/a | n/a |
| Zurich Life | 3% | n/a | |
| Investment Bond | |||
| Aviva | 5% | 1% p.a. | |
| Cantor Fitzgerald Ireland Ltd. | 2.25% | 0.5% p.a. | |
| Friends First | 4% | 0.75% p.a. | |
| Irish Life | 3% | 0.5% p.a. | |
| New Ireland | 4% | 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 |
|---|---|---|---|---|
| Single Contribution Pension | ||||
| Aviva | 15% | 1% p.a. | ||
| Friends First | 25% | 0.75% p.a. | ||
| Irish Life | 17.5% | 5% | 0.5% p.a. | |
| New Ireland | 25% | 5 Years | 8% | 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. | ||
| Friends First | 17.5% | 0.25% p.a. | ||
| Irish Life | 17.5% | 5% | 0.5% p.a. | |
| New Ireland | 25% | 5 Years | 6% | 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. | ||
| Friends First | 10% | 0.75% p.a. | ||
| Irish Life | 5.5% | 5.5% | 0.5% p.a. | |
| New Ireland | 10% | 5 Years | 2.5% | 0.5% p.a. |
| Standard Life | 15% | 5 Years | n/a | 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 |
| Irish Life | 120% | 28% | 30% | 28% | 28% | 30% | 28% | 28% | 28% | |
| New Ireland | 225% | 50% | 20% | 20% | 20% | 12.5% | 12.5% | 12.5% | 12.5% | 5 Years |
| Royal London | 225% | 0% | 0% | 0% | 0% | 3% | 3% | 3% | 3% | 5 Years |
| Zurich Life | 100% | 12% | 12% | 12% | 12% | 12% | 12% | 12% | 12% | 1 Year |
| Group Protection | Death In Service | Clawback Period | Permanent Health Insurance |
|---|---|---|---|
| Aviva | 6% | 12.5% | |
| Irish Life | 6% p.a. | 12.5% p.a. | |
| New Ireland | 15% | 1 Year | 20% |
| Zurich Life | 6% | n/a | 12.5% |