Our Remuneration

We, Melvin Financial Services act as intermediary 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 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.

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.

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
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. Melvin Financial Services may apply a Subscription
fee for Greenman Investments.

Other Fees, Administrative Costs/ Non-Monetary Benefits
The firm 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 the link below to access our commission summary and list of providers that our firm deal with.

For FINANCIAL SERVICES Commission Summary please click here.

Should you require any further information please email us at info@melvinfs.com

Thanking you.

March 31st 2020.