Remuneration Statement
Our Remuneration
We, Charles McCarthy Insurances Ltd T/A McCarthy Financial Services (C30147) act as an Insurance and / or Investment Intermediary between you, the Consumer, and the Product Provider (Insurer) 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 Remuneration?
Remuneration is the payment earned by the Intermediary 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.
What is Commission?
Commission is payment that may be earned by an Intermediary for work undertaken for both the Product Provider and the 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.
General Insurance (Non-Life) 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).
The McCarthy Insurance Group currently do not provide any services with regard to the sale of mortgage products.
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.
Sustainability Remuneration Policies (Sustainable Financial Disclosure Regulation ‘SFDR’)
We are remunerated by commission and other remuneration from Product Providers. The key Product Providers with which we engage, and receive remuneration from, have developed responsible investment as part of their investment philosophies and sustainability risk policies.
Fees
The Firm may also be remunerated by fee by the Product Producer such as Policy Fee, Administration Fee, or in the case of Investment Firms, advisory fees.
A schedule of current Fees and Charges (General Insurances (Non-Life) and Financial Services for the McCarthy Insurance Group can be viewed at www.mig.ie
Other Fees, Administrative Costs/ Non-Monetary Benefits
The McCarthy Insurance Group 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 Product Providers that our Firm deals with, which for ease of reference is in alphabetical order.