Pursuant to provision 4.58A of the Central Bank of Ireland’s September 2019 Addendum to the Consumer Protection Code, all intermediaries, including Shelbourne Financial Limited, 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 Shelbourne Financial Limited for work undertaken on behalf of both the product 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 Shelbourne Financial Limited shortly after the sale is completed and is based on a percentage of the premium paid, amount invested, or amount borrowed.

Trail/Renewal commission model

Further payments are paid at intervals 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 include advances of commission for future sales granted to Shelbourne Financial Limited in order to assist with setup costs or business development.

Profit share arrangements

In some cases, Shelbourne Financial Limited 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), and fund-based or trail commission (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 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 Shelbourne Financial Limited 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, Shelbourne Financial Limited must return commission to the product producer.

Fees

Shelbourne Financial Limited 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.

Preferred provider rate

Other fees, administrative costs / non-monetary benefits

Shelbourne Financial Limited 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

Shelbourne Financial Limited – Commission Disclosure

This document is issued by Shelbourne Financial Limited in accordance with Provision 4.58A of the Central Bank of Ireland Consumer Protection Code.

Maximum Commission Rates

Single Contribution Pension

Aviva – Initial 5% | Clawback — | Trail 1% p.a.
Friends First – Initial 5% | Clawback — | Trail 0.75% p.a.
Irish Life – Initial 5% | Clawback — | Trail 0.75% p.a.
New Ireland – Initial 5% | Clawback 5 Years | Trail 1% p.a.
Standard Life – Initial 5% | Clawback — | Trail 1% p.a.
Zurich Life – Initial 5.5% | Clawback — | Trail 0.5% p.a.

Single Contribution PRSA

Aviva – Initial 4% | Clawback — | Trail 0.5% p.a.
Friends First – Initial 7.5% | Clawback — | Trail 0.25% p.a.
Irish Life – Initial 5% | Clawback — | Trail 0.75% p.a.
New Ireland – Initial 7% | Clawback 5 Years | Trail 0.5% p.a.
Standard Life – Initial 5% | Clawback — | Trail 0.5% p.a.
Zurich Life – Initial 5.5% | Clawback — | Trail 0% p.a.

ARF / AMRF

Aviva – Initial 5% | Clawback — | Trail 1% p.a.
Friends First – Initial 5% | Clawback — | Trail 0.75% p.a.
Irish Life – Initial 5% | Clawback — | Trail 0.75% p.a.
New Ireland – Initial 5% | Clawback n/a | Trail 1% p.a.
Standard Life – Initial 4% | Clawback — | Trail 1% p.a.
Zurich Life – Initial 5% | Clawback — | Trail 0.5% p.a.

Annuities

Aviva – 3%
Friends First – 3%
Irish Life – 3%
New Ireland – 3%
Zurich Life – 3%

Investment Bonds

Aviva – 5% | Trail 1% p.a.
BCP – 2.1%
BlackBee Investments – 3%
Broker Solutions – 2.5%
Cantor Fitzgerald Ireland Ltd. – 2.25%
Friends First – 4% | Trail 0.75% p.a.
Investec Europe Limited – 2.25%
Irish Life – 3% | Trail 0.5% p.a.
New Ireland – 4% | Clawback 3 Years | Trail 1% p.a.
Standard Life – 4% | Trail 1% p.a.
Zurich Life – 5% | Trail 0.5% p.a.

REGULAR CONTRIBUTION PRODUCTS

Regular Contribution Pension

Aviva – Initial 15% | Clawback — | Trail 1% p.a.
Friends First – Initial 25% | Clawback — | Trail 0.75% p.a.
Irish Life – Initial 17.5% | Clawback 5 Years | Renewal 5% | Trail 0.5% p.a.
New Ireland – Initial 25% | Clawback 5 Years | Renewal 8% | Trail 1% p.a.
Standard Life – Initial 25% | Clawback 5 Years | Trail 1% p.a.
Zurich Life – Initial 20% | Clawback 4 Years | Renewal 3% | Trail 0.5% p.a.

Regular Contribution PRSA

Aviva – Initial 22.5% | Trail 0.5% p.a.
Friends First – Initial 17.5% | Trail 0.25% p.a.
Irish Life – Initial 17.5% | Clawback 5 Years | Renewal 5% | Trail 0.5% p.a.
New Ireland – Initial 25% | Clawback 5 Years | Renewal 6% | Trail 0.5% p.a.
Standard Life – Initial 5% | Clawback 5 Years | Renewal 5% | Trail 0.5% p.a.
Zurich Life – Initial 5% | Clawback 4 Years | Renewal 5% | Trail 0% p.a.

Savings

Aviva – Initial 15% | Trail 1% p.a.
Friends First – Initial 10% | Trail 0.75% p.a.
Irish Life – Initial 5.5% | Trail 0.5% p.a.
New Ireland – Initial 10% | Clawback 5 Years | Renewal 2.5% | Trail 0.5% p.a.
Standard Life – Initial 15% | Clawback 5 Years | Trail 1% p.a.
Zurich Life – Initial 10% | Clawback 4 Years | Renewal 1% | Trail 0.5% p.a.

PROTECTION PRODUCTS

Individual Protection

Aviva – Year 1: 200% | Yr2–Yr9+: 30% | Clawback 2 Years
Irish Life – Year 1: 120% | Then approx. 28–30% | Clawback —
New Ireland – Year 1: 225% | Yr2–Yr4: 20% | Yr5+: 12.5% | Clawback 5 Years
Royal London – Year 1: 225% | Yr2–Yr5: 0% | Yr6+: 3% | Clawback 5 Years
Zurich Life – Year 1: 100% | Yr2–Yr9+: 12% | Clawback 1 Year

Group Protection

Aviva – Death in Service 6% | PHI 12.5%
Irish Life – Death in Service 6% p.a. | PHI 12.5% p.a.
New Ireland – Death in Service 15% | Clawback 1 Year | PHI 20% | Clawback 1 Year
Zurich Life – Death in Service 6% | PHI 12.5%