Commissions

We, Brian Murray t/a Brian Murray Financial Services act as intermediary (Broker) between you, the consumer, and the product provider with whom we place your business.

The Background

Under the Consumer Protection Code, we must make available a summary of the details of all arrangements for any fee, commission, other reward or remuneration provided to us which it has agreed with its product producers.

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.

General Insurance Products

General insurance products, such as motor, home, travel, health, retail or liability insurance, are typically subject to a single or standard commission model, based on the amount of premium charged for the insurance product.

Life Assurance/Investments/Pension Products

For Life Assurance products commission is divided into initial commission and renewal commission, or fund-based relating to accumulated fund.

Trail commission, bullet commission, fund-based or renewal commission are all terms used for ongoing payments, to cove the ongoing service, filing and compliance requirements..    Where an investment is being built up though an insurance-based investment product or a pension product, the commissions may be based on a percentage of the value of the fund and/or the annual premium.

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. We receive a once-off payment for arranging mortgages, which we use to offset fees payable to us.

Clawback

Clawback is an obligation on the intermediary to repay unearned commission.  If you cancel or withdraw from the financial product within the specified time, we must return commission to the product producer.

Other Fees, Administrative Costs/ Non-Monetary Benefits

We may also be in receipt of non-monetary benefits such as:

• Attendance at product provider seminars
• Assistance with Advertising/Branding

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