Commission Terms 2020
Our Remuneration
We, Marie Davey & Gemma Maguire t/a Fusion 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.
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.
Profit Share arrangements
In some cases, the intermediary may be a party to a profit-share arrangement with a product provider and
will earn additional commission. Any business arranged with these product providers on a client’s behalf will
be placed with the product provider because that product provider is at the time of placement, the most
suitable to meet the client’s requirements, taking all the client’s relevant information, demands and needs
into account.
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 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.
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.
Credit Products/Mortgages
Commission may be earned by intermediaries for arranging credit for consumers, such as mortgages. The
single, or standard, commission model is the most common commission model applied to the sale of
mortgage products by mortgage credit intermediaries (Mortgage Broker).
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. None
Preferred Provider Rate
Other Fees, Administrative Costs/ Non-Monetary Benefits
The firm may also be in receipt of other fees, administrative costs, or non-monetary benefits such as:
-Attendance at product provider educational seminars
-Assistance with Advertising/Branding
Single Contribution Products Initial commission Clawback
Period Trial commission
Single Contribution Pension
Aviva 5% 1% p.a.
Aviva (Heritage Friends) 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.
Zurich Life 5.5% 0.5% p.a.
Single Contribution PRSA
Aviva 4% 0.5% p.a.
Aviva (Heritage Friends) 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.
Zurich Life 5.5% 0% p.a.
ARF / AMRF
Aviva 5% 1% p.a.
Aviva (Heritage Friends) 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.
Zurich Life 5% 0.5% p.a.
Annuity
Aviva 3% n/a
Aviva (Heritage Friends) 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.
Aviva (Heritage Friends) 4% 0.75% p.a.
BCP 2.1%
BlackBee Investments 3%
Broker Solutions 2.5%
Cantor Fitzgerald Ireland Ltd. 2.25%
Investec Europe Limited 2.25%
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 – Trial commission –
“Regular Contribution Pension”
Aviva 15% 1% p.a.
Aviva (Heritage Friends) 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.
Aviva (Heritage Friends) 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.
Aviva (Heritage Friends) 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+ & the 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 Servic & Clawback
Period
“Permanent Health Insurance Clawback Period”
Aviva 6% 12.5%
Irish Life 6% p.a. 12.5% p.a.
New Ireland 15% 1 Year 20% 1 Year
Zurich Life 6% n/a 12.5% n/a
“Mortgages Commission Clawback Period”
Finance Ireland 1% 3 Years
Haven 1% 3 Years
ICS 1% 3 Years
KBC Bank 1% 3 Years
Permanent TSB 1% 3 Years
Marie Davey, Gemma Maguire t/a Fusion Finance is regulated by The Central Bank of Ireland
