Our Charges

REMUNERATION & FEES

Capital Financial Planning Ltd t/a Capital Financial act as intermediary (Broker) between the consumer, and the product provider with whom we place your business. We are usually remunerated by way of commission and other payments from product producers on the completion of business. Our clients may choose to pay in full for our services as specified below by means of a fee. Where we receive recurring commission, this forms part of the remuneration for initial advice provided. We reserve the right to charge additional fees if the number of hours relating to on-going advice/assistance exceeds 1 hour.

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 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. 

Partnership Arrangements

In some cases, we may be a party to a partnership 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

In certain circumstances, it will be necessary to charge a fee for services provided. These are listed in on our Terms of Business and our life procedures manuals. In other circumstances where fees are chargeable or where the client chooses to pay in full for our service by fee, we will notify the client in writing in advance and agree the scale of fees to be charged if different from fees outlined in our schedule of fees on our website. 

If we receive commission from a product provider, this will be offset against the fee which we will charge the client. Where the commission is greater than the fee due, the commission will become the amount payable to the firm unless an arrangement to the contrary is made. 

Please see the commission that apply to your policy in the listings attached to this website.

As a Broker we provide advisory services based on a fair & personal analysis of the market. Our client is given the option of paying for the advisory services in full by way of fee. They are also given the option of paying for the advisory services by way of combination of fees and commissions &/or they may choose to offset fees payable vis a vis commission. 

Where our client has requested that we provide advisory services on a fee basis we will discuss, agree the clearly document the scope of work to be undertaken and the fees to be charged for this work. A client engagement letter is issued to each client prior to the commencement of the requested service. 

A full list of our fees is in our Terms of Business

A full list of our fees is on display in our reception area.

Additional fees may be payable for complex cases or to reflect value, specialist skills or urgency as agreed with the client in advance of any work being undertaken.