Remuneration Details

Remuneration Details for Lyons Financial Services 

 

Lyons Life Limited and Lyons Health Limited both trading under Lyons Financial Services, are regulated by the Central Bank of Ireland as an insurance intermediary under the European Union (Insurance Distribution) Regulations 2018, as an Investment Intermediary under Section 10 of the Investment Intermediaries Act 1995 (as amended) and a Mortgage Credit Intermediaries/Mortgage Intermediaries authorised pursuant to Section 31(10) of the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 and Section 151A (1) of the Consumer Credit Act 1995. Lyons Financial Services specialises in providing financial advice and services to individuals ,companies and members of affinity groups such as trade unions, semi-state bodies, public sector employers and associations.

In particular, we provide Salary/ Income Protection, PHI, Life Insurance, Pensions, Savings and Investments as well as Car, Home, Health, Travel and Dental Insurance. Full details of our products and services can be viewed at www.LFS.ie.

Lyons Financial Services act as an intermediary (Broker) between you, the consumer, and the product provider with whom we place your business.

 

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 providers.

 

What is Commission?

 

For the purpose of this document, commission is the payment (made by the product provider) that is earned by Lyons Financial for work undertaken on behalf of both the provider and the consumer. The amount of commission is generally directly related to the quantity or value of the products sold. There are different types of commission models:

  • Single commission model: Here 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 if the consumer lapses or cancels the product before the commission is deemed to be earned.
  • 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 provider.

 

General Insurance Products

General insurance products, such as motor, home, travel, and health insurance, are typically subject to a single or standard commission model, based on the amount of premium charged for the insurance product.

 

Life Assurance/Investments/Pension products

For Life Assurance products commission is broken down 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 through an insurance-based investment product or a pension product, the commission may be based on a percentage of the value of the fund or the annual premium. For a single premium/lump sum product, the Commission is generally based on the value of the fund.

Examples of products include Group Scheme Salary/Income Protection products, Individual Protection products, Specified Illness products, Additional Voluntary Contributions, Lump Sum Investments, Single Premium Investments, Pensions and Approved Retirement Funds.

 

Mortgages

Commission is earned by Lyons Financial Services for arranging mortgages for consumers. The single, or standard, commission model is the model applied to the sale of mortgage products by Lyons Financial Services.

 

Fees

Lyons Financial Services charges our customers a setup fee for AVCs, Lump Sum Investments, Single Premium Investments, Pensions and Approved Retirement Funds and brokerage fees in regard to our general and health insurances products. Please see relevant sections on this page for information on these charges.

 

Non-Monetary Benefits

Lyons Financial Services may also be in receipt of non-monetary benefits such as:

  • Attendance at product provider seminars
  • Assistance with Advertising/Branding/Marketing

Lyons Financial Services commission options are displayed as a range, showing the maximum amount which can be received. The level of commission depends on individual circumstances, based on the following factors: 

  • Intermediary discretion
  • Whether the level of commission is negotiable
  • Client relationship
  • Length of time of the policy
  • Amount of investment
  • Length of investment
  • Commercial decision
  • Complexity of the case
  • Product constraints by the product provider