Commission summary

Bonkers Money Limited t/a bonkers.ie, acts as an intermediary 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 producers.

What is commission?

Commission is the payment earned by the intermediary 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: 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.

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. Examples of products include Life Protection, Regular Premium Life Assurance Investments, Single Premium (lump sum) Insurance-based Investments, and Single Premium Pensions.

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 brokers).

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.

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
  • Industry Educational Seminars
  • Co-branded literature
  • Assistance with Advertising/Branding

Providers

Bonkers.ie places insurance with the following product producers:
  • Aviva Life & Pensions Ireland DAC
  • New Ireland Assurance Company plc
  • Royal London Insurance DAC
  • Zurich Life Assurance plc
Bonkers.ie may arrange mortgages with the following providers:
  • Avantcard DAC
  • Dilosk DAC t/a ICS Mortgages
  • Finance Ireland Credit Solutions DAC
  • Haven Mortgages Limited
  • KBC Bank Ireland PLC
  • permanent tsb plc

Commission Received

Bonkers.ie has the following commission terms with their Home insurance providers:
Zurich
Commission €90
Bonkers.ie has the following commission terms with their life insurance providers:
Aviva New Ireland Royal London Zurich
Year 1 110% 105% 110% 125%
Year 2 20% 20% 20% 20%
Year 3 20% 20% 20% 20%
Year 4 20% 20% 20% 20%
Year 5 20% 20% 20% 20%
Year 6+ 3% 3% 3% 3%
Clawback period: 5 years
Bonkers.ie has the following commission terms with their mortgage providers:
Avantcard Finance Ireland Haven ICS KBC PTSB
Commission 1% 1% 1% 1% 1% 1%
Clawback
0-12 months *Pro-rata 100% 75% 100% *Pro-rata 100%
13-24 months *Pro-rata 50% 50% 50% *Pro-rata 50%
25-36 months *Pro-rata 25% 25% 25% *Pro-rata 25%
*Avantcard and KBC clawback commission over 36 months on a pro-rata, month by month basis (36/36ths) ie. if the loan redeems after 15 months, clawback will be 21/36 of commission

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