Our Remuneration

What is Remuneration?

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.

What is Commission?

Commission is payment that may be earned by an intermediary for work undertaken for both provider and consumer.

There are different types of remuneration and different 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.

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.

Mortgages

Jigsaw Financial Solutions Ltd is a leading mortgage intermediary. We will advise you on the best options to suit your needs and we will work with you through the entire mortgage process. We will source you the most suitable mortgage with the bank(s) with whom we hold mortgage agencies. Your mortgage is the biggest financial decision you will make during your lifetime and therefore it is essential that you choose the right professional adviser to guide you through this process.

Jigsaw Financial Solutions Limited may receive commission from the mortgage intermediary of up to a maximum of 1% of the amount borrowed, following drawdown of the funds on a mortgage application. This commission is paid by the mortgage lender.

In all cases an application processing fee ranging from €500 – €1,000 will be charged and must be paid directly by the client(s).

This is to cover a small percentage of the time administrating the application. Fees will vary depending on the mortgage type, requirements, complexity, and specialist skills.

Financial Services

We will review your current financial position, listen to what you want to achieve and provide you with expert, impartial advice tailored to your individual needs and circumstances.

Full Financial Review fees starting from €500. This includes recommendations for product placement with no obligation to proceed with any of the products recommended.

All the fees will be provided and discussed in advance of proceeding with the services.

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 seminars
• Assistance with Advertising/Branding

Click on a link below to access a list of the providers that our firm deals with.

Providers

Life Insurance Providers:

• Irish Life
• Royal London Income Protection
• Royal London Life cover and Specified Illness Cover
• Aviva
• Zurich Life
• Standard Life Synergy Products
• Standard Life Top Up only Product Range
• New Ireland

Lender Providers:

• Bank of Ireland
• Haven
• PTSB
• ICS Mortgages
• Finance Ireland
• Nua Money Limited

Investment Providers:

• BCP