Legal and Regulatory Disclosures
Commission Disclosure April 2020
We, MyWealthManagement Limited act as intermediary (Broker) between our consumers and the product provider with whom we place business.
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 Providers.
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 commission models:
- Single Commission model: Single Commission is 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.
- Trail/Renewal commission model: Trail / Renewal are 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.
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 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.
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 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.
The firm 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. Include arrangements etc.
Other Fees, Administrative Costs/ Non-Monetary Benefits
The firm may also be in receipt of 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, which for ease of reference is in alphabetical order.
Life Insurance Providers
- AVIVA Life & Pensions: Click Here
- Irish Life: Click Here
- New Ireland Assurance: Click Here
- Royal London: Income Protection: Click Here
- Royal London: Life & Serious Illness: Click Here
- Standard Life: Click Here
- Zurich: Click Here
Investment Article 3/MIFID Providers
- BCP Asset Management: Click Here
- Cantor Fitzgerald: Click Here
- Davy Select: Click Here
- Newcourt Retirement Fund Managers Click here
- Independent Trustee Company Click here
Distance Marketing Directive
The Distance Marketing Directive took effect on the 15th February 2005. It applies when a contract for financial services (including life assurance products) is arranged on an organised distance sales basis.
What is a distant sale?
A distant sale is defined as one that is arranged using means of communication though which the consumer and the supplier (e.g. intermediary) are not in one another’s presence; i.e. when the contract is arranged exclusively by post, internet or telephone and there is no face to face meeting between the intermediary and the customer.
Do the regulations apply if the intermediary meets the customer during the course of arranging the contract?
Once a face-to-face meeting has taken place in the course of arranging the contract, it is not considered a “distant sale”.
What do the regulations require?
The regulations specify that when a distant sale has taken place certain information is provided to the customer within a reasonable time before the customer is bound by the contract. It must be provided by the intermediary before the sale is completed.
What information must be given to the customer prior to completion of the contract?
- Intermediary’s terms of business letter
- The product booklet
- The generic customer information notice
- The product terms and conditions
- Additional information included in Schedule 1 of the regulations that is not included in the booklet or CIN.
Sustainable Investment and Sustainable Preferences Guide
How can you define sustainable investing?
Sustainable investing can be summarised as investing in companies that manage environment, social and governance (ESG) risks well and excluding companies where there is evidence of adverse behaviour or harmful activities. Initially, you may think it’s focused on buying into “green” or environmentally friendly companies. But in fact there is a lot more to ESG than just this. E.G., investing based on your personal values might mean considering ESG factors such as:
- Environmental factors which measure the impact on the environment such as climate change, carbon emissions, pollution and deforestation.
- Social factors which measure the impact on society like employee working conditions and inclusion and hiring programmes, racial diversity, inequality.
- Governance factors which consider issues such as corporate pay (how much top executives earn compared to other workers), ethics (whether a company is involved in bribery or corruption), tax transparency and board management.
What exactly are sustainable preferences?
Under EU law we are obligated to ask you about your current sustainable preferences to see if you want ESG factors to be taken account of when we are reviewing the funds we have that may be suitable for you. Under this new legislation, sustainable investment preferences are categorised as follows:
1. Environmentally sustainable investments
Environmentally sustainable investments are investments that contribute substantially to one or more of six environmental objectives set out in an EU classification system (known as the “EU Taxonomy”), while at the same time not doing any significant harm to any of the remaining objectives. The six environmental objectives under EU law are:
- Climate change mitigation &
- Climate change adaptation
- Sustainable use and protection of water and marine resources
- The transition to a circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
2. Sustainable investments
Sustainable investments are investments in economic activities that have an environmental or social objective, provided that such investments do not significantly harm any environmental or social objective. The investee companies must follow good governance practices. Sustainable investments may or may not be aligned with the EU Taxonomy. These are known as “Article 9” or “dark green” investments.
3. Investments that consider how the investment strategy may negatively impact any ESG factors
These investments consider the negative impact of investment decisions on ESG factors for example factors relating to environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters. These investments often promote environmental or social characteristics and invest in companies that follow good governance practices. These investments types are known as “Article 8” or “light green” investments.
What can we offer you where you tell us that you have a sustainable investment preference?
We currently offer Article 8 Funds through our range of saving, investment and pension products. Typically our sustainable product range will not invest in certain “restricted” companies, e.g. a company that makes controversial weapons, or that would actively select investments based on certain ESG characteristics. These funds do not have a sole ESG objective. When we ask you if you have a sustainable preference, we are asking you whether you would like to invest in one of our Article 8 Funds.
What can we offer if you do not have a sustainable investment preference for your entire portfolio?
We can offer investments that are not promoted as having ESG factors or objectives. These investments may bring other benefits to your portfolio, not currently available through investments that align with sustainability preferences.
Warning: The value of your investment may go down as well as up.
Warning: These funds may be affected by changes in currency exchange rates.
Warning: If you invest in these funds you may lose some or all of the money you invest.
Terms and conditions apply.
Exit tax (up to 41% currently) applies to gains on life assurance investment policies. A Government levy (currently 1% of the premium amount) applies to all premiums paid to a life assurance policy. While great care has been taken in its preparation, this document is of a general nature and should not be relied on in relation to specific issues without appropriate financial, insurance, investment or other professional advice. The content of this document is for information purposes only and does not constitute an offer or. recommendation to buy or sell any investment or to subscribe to any investment management or advisory service. While the information has been taken from sources we believe to be reliable, we do not guarantee its accuracy or completeness and any such information may be incomplete or condensed.