Effective Date: 1 April 2020

We, Lane, Clark and Peacock Ireland (LCP), act as intermediary (Broker) between you, the client, and the product provider with whom we place your business.

We provide advice on Life Assurance, Investment or Pension products.  We do not provide advice on General Insurance products, Credit products or Mortgages. 

We generally carry out a review of the primary product providers in the market before recommending a product, unless you specify otherwise.

Fees

We will generally charge you an hourly rate for our advice unless we agree an alternative basis in advance.  The fee structure will reflect the nature of our engagement with you (either a one-off or on-going arrangement).

You will have the option to pay this fee to us directly or through commission paid to us from a product provider through which you take out a financial product.

This document provides an explanation on the various commission structures that we may use.

Where a client agrees to have our fees paid through commission from a product provider then we will generally receive:

1. Single Commission – Generally ranging from 0% to 5% of initial funds (contribution/premium/transfer payment).  Typically this is available in steps of 0.25%.  It is paid upfront at the outset of the investment by the product provider to us.
   
   and/or
2. Trail Commission – Generally ranging from 0% to 1% pa of fund size.  Typically this is available in steps of 0.25% pa or smaller.  It can be paid annually or monthly by the product provider to us.

The actual percentage of the single or trail commission will reflect our fees agreed with you which depend on the scope of or engagement. You will be informed fully regarding the level of commissions payable to LCP.

We do not receive any non-monetary commission payments, benefits, rewards or assistance from product providers.  We do not receive any sales/volumes based commission.

The commission paid to LCP by product providers will be reflected in the product charges deducted by the product provider.

If you require any further clarifications on the above fees or commission arrangements please contact your adviser in LCP.

List of Product Providers

The list of product providers with which LCP currently place business are

Life Assurance Companies

• Irish Life Assurance plc
• New Ireland Assurance Company plc
• Aviva Life and Pensions Ireland dac
• Zurich Insurance plc
• Standard Life International dac

MIFID Investment Firms

• Independent Trustee Company
• Newcourt Retirement Fund Managers
• Wealth Options Limited
• BCP Asset Management dac

Stockbrokers

• Davy Stockbrokers
• Goodbody Stockbrokers
• Cantor Fitzgerald Ireland
• Brewin Dolphin

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, 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.

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 has passed. If the consumer cancels or withdraws from the financial product within the specified time period, the intermediary must return some or all of the commission to the product producer.