Remuneration
Ask Acorn acts as an intermediary (Broker) between you, the consumer, and the product provider 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 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 a commission is deemed to be earned. One form of indemnity commission is an advance of commission for future sales granted to an intermediary in order to assist with set up costs or business development. Indemnity commission may be subject to a clawback if the consumer lapses or cancels the product before the commission is deemed to be earned.
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 customer’s behalf will be placed with the product provider because that product provider is the most suitable to meet the client’s requirements at the time of placement, taking all the client’s relevant information, demands and needs into account.
General Insurance 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 customer’s behalf will be placed with the product provider because that product provider is the most suitable to meet the client’s requirements at the time of placement, taking all the client’s relevant information, demands and needs into account.
General Insurance 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.
Life assurance products fall into either individual or group protection policies. Investment/Pension products are 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.
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.
Other Fees, Administrative Costs/Non-Monetary Benefits
Ask Acorn may also be in receipt of other fees, administrative costs, or non-monetary benefits such as:
- Attendance at product provider seminars.
- Assistance with advertising or branding.
Acorn Life DAC pays Ask Acorn in order to cover costs associated with administering Acorn Life DAC business. ABL does not make a profit from these payments.
Acorn Life DAC is our preferred provider for certain life products. We present offerings from other insurance or product providers when there is an existing business relationship with an insurance or product provider or when a specific life product is unavailable from Acorn Life DAC. While we offer other life products we only do so where a suitable product is not available from Acorn Life DAC.
Commission Rates