Terms of Business
Effective Date 21/05/2021
The terms of business set out in this document have been drafted based on documents and guidance provided by Brokers Ireland, amended as necessary to reflect the procedures, ethos and business acumen of our organisation in the level of service provided to our customers as an Intermediary regulated by the Central bank of Ireland.
Our company’s long-standing culture is “Having the Clients Best Interests at Heart”.
The terms of business set out in this document have been drafted based on documents and guidance provided by Brokers Ireland, amended as necessary to reflect the procedures, ethos and business acumen of our organisation in the level of service provided to our customers as an Intermediary regulated by the Central Bank of Ireland.
Our company’s long-standing culture is “Having the Clients Best Interests at Heart”.
These Terms of Business set out the general terms under which our firm will provide business services to you and the respective duties and responsibilities of both the firm and you in relation to such services. Please ensure that you read these terms thoroughly and if you have any queries, we will be happy to clarify them. If any material changes are made to these terms, we will notify you.
1. Authorisation with the Central Bank of Ireland
IPM (Insurances) Ltd. and IPM (Financial Services) Ltd. are regulated by the Central Bank of Ireland as an Insurance Intermediary registered under the European Union (Insurance Distribution) Regulations 2018; and as an Investment Intermediary authorised under the Investment Intermediaries Act, 1995. IPM (Financial Services) Ltd is also regulated by the Central Bank of Ireland as a Mortgage Credit Intermediary/Mortgage Intermediary under the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) and under the Consumer Credit Act, 1995 (as amended) (CCA).
Copies of our regulatory authorisations are available on request. The Central Bank of Ireland holds registers of regulated firms. You may contact the Central Bank of Ireland on 1890 777 777 or alternatively visit their website at www.centralbank.ie to verify our credentials.
2. Codes of Conduct
Our firm is subject to the Consumer Protection Code, Minimum Competency Code and Fitness & Probity Standards which offer protection to consumers. These Codes can be found on the Central Bank’s website www.centralbank.ie
3. Our Services
We are members of Brokers Ireland.
Our principal business is to provide advice and arrange transactions on behalf of clients in relation to life, pensions, savings, investments, mortgages and general insurance products.
A full list of insurers, product producers and agencies with which we deal is available on request.
We operate on the basis of fair analysis of the market and we pay particular attention to identifying and recommending the product/s that best fulfil the specific needs of our customers.
For the most part, the firm is remunerated by commission for its services as a Retail Intermediary.
On occasion, in particular circumstances where the need may arise, the schedule of fees as set out below may apply. We emphasise that in all cases the level of fee applying will be explained in advance to the customer.
4. Fair and Personal Analysis
The concept of fair and personal analysis describes the extent of the choice of products and providers offered by an intermediary within a particular category of life assurance, general insurance, mortgages, and/ or a specialist area. The number of contracts and providers considered must be sufficiently large to enable an intermediary to recommend a product that would be adequate to meet a client’s needs having regard to the client’s fact-find and product suitability assessment.
The number of providers that constitutes ‘sufficiently large’ will vary depending on the number of providers operating in the market for a particular product or service and their relative importance in and share of that market. The extent of fair analysis must be such that could reasonably be expected of a professional conducting business, taking into account the accessibility of information and product placement to intermediaries and the cost of the search.
In order to ensure that the number of contracts and providers is sufficiently large to constitute a fair and personal analysis of the market, we will consider the following criteria:
- the needs of the customer,
- the size of the customer order,
- the number of providers in the market that deal with brokers,
- the market share of each of those providers,
- the number of relevant products available from each provider,
- the availability of information about the products,
- the quality of the product and service provided by the provider,
- cost, and
- any other relevant consideration including data privacy.
We are remunerated by commission for the advice we provide on our insurance-based investment products.
5. Life & Pensions/Deposits & Life Wrapped Investments
We provide life assurance and pensions on a fair and personal analysis basis i.e. providing services on the basis of a sufficiently large number of contracts and product producers available in the market to enable us to make a recommendation, in accordance with professional criteria, regarding which contract would be adequate to meet your needs.
We will provide assistance to you for any queries you may have in relation to the policies or in the event of a claim during the life of the policy and we will explain to you the various restrictions, conditions and exclusions attached to your policy. However, it is your responsibility to read the policy documents, literature and brochures to ensure that you understand the nature of the policy cover; particularly in relation to Permanent Health Insurance (PHI) and Serious Illness policies.
Specifically, on the subject of permanent health insurance policies we will explain to you;
- the meaning of disability as defined in the policy
- the benefits available under the policy
- the general exclusions that apply to the policy; and
- the reductions applied to the benefit where there are disability payments from other sources
For a serious illness policy, we will explain clearly to you the restrictions, conditions and general exclusions that attach to that policy.
We can provide advice on and arrange products in the following lines:
Commercial Motor & Property
Goods in Transit
Equine and other sundry classes
We provide general insurance on a fair and personal analysis basis (providing services on the basis of a sufficiently large number of contracts and product producers are available in the market to enable the firm to make a recommendation, in accordance with professional criteria, regarding which contract would be adequate to meet your needs.
We will also offer assistance to you in relation to processing claims on policies taken out with us and in seeking renewal terms on your cover.
To ensure continuity of cover, where you have an existing policy which is due to expire and where we have been unable to contact you, we may put continuing cover in force whilst awaiting your instruction. You will be liable for any premiums payable to the relevant insurer for the period of time between renewal and when we receive your instruction. You have the right not to avail of this service.
Through the lenders or other undertakings with which we hold an agency, IPM (Financial Services) Ltd. can provide advice on and arrange mortgage products from the following range: fixed-rate loans, variable rate mortgages, capital & interest mortgages, interest only mortgages, endowment mortgages, pension mortgages and residential investment property.
We provide mortgage advice on a fair analysis basis (providing services on the basis of a sufficiently large number of contracts and product producers available in the market to enable the firm to make a recommendation, in accordance with professional criteria, regarding which contract would be adequate to meet your needs).
8. Sustainability Factors – Investment/IBIPs/Pension Advice
When providing advice, the firm considers the adverse impact of investment decisions on sustainability. As part of our research and assessment of products, the firm will examine the Product Providers literature to compare financial products and to make informed investment decisions about ESG products. The firm will at all times act in the client’s best interests and keep clients informed accordingly.
The consideration of sustainability risks can impact on the returns of financial products.
9. Receipts & Handling of Clients Money
We accept payment by bank transfer, Debit/Credit Card, Cheque or Cash and we can also arrange payment by direct debit to insurers in the circumstances permitted under section 25G of the Investment Intermediaries Act 1995. We will issue a receipt as required by section 30 of the Investment Intermediaries Act 1995.
Our web site has a facility to accept general insurance payment on line. Visit our website at www.ipmdraper.ie
10. Statement of Charges
We are remunerated by commission and other payments from product producers or lenders on the completion of business and by brokerage / administration charges in the case of general insurance lines.
A summary of the details of all arrangements for any fee, commission, other reward or remuneration paid or provided to us which has been agreed with product producers is available on our web site and in our office
In accordance with the agreed standards the commission templates from our providers reflects the maximum commission receivable, however, IPM Draper rates of commission are frequently below the maximum in order to reduce our clients costs.
Sustainability Factors – Investment/IBIPs/Pension Advice
When assessing products, we will consider the different approach taken by product providers in terms of them integrating sustainability risks into their product offering. This will form part of our analysis for choosing a product provider.
Our maximum scale fees for brokerage / administration are as follows:
Household, Motor, Farm, Commercial Combined €75,
Engineering and other classes €50
Mid Term alterations, duplicate certificates, No Claims Bonus letters €25
Brokerage fees for commercial or industrial clients will be agreed with the individual client when arranging cover or renewal.
In certain circumstances, it may be necessary to charge a consultancy fee for services provided. These are as listed below. In circumstances, where fees are chargeable, or where you choose to pay in full for our service by fee, we will notify you in writing in advance and agree the scale of fees to be charged if different from fees outlined below. Where it is not possible to provide the exact amount, we will provide you with the method of calculation of the fee.
If we receive commission from a product provider, this will be offset against the fee which we will charge you. Where the commission is greater than the fee due, the commission may become the amount payable to the firm unless an arrangement to the contrary is made.
Principles / Directors €130/Hour
Senior Advisers €80/Hour
Support staff €35/Hour
Our standard Consultancy Service fees for a motor policy range from €50 – €150 and for household policy €100 – €200 dependent on time required.
11. List of Product Producers
Axa Broker plc, Allianz Ireland plc, Alan B Kidd & Co Ltd., Aviva Insurance plc, Aviva Life & Pensions Ireland, Aviva Health, Broker Support, Finance Ireland, Friends First, Frost, Haven, Hickey Clarke Langan / Lloyds, Howden (Equine) Insurances, ICS, Irish Life, KBC Bank, KBIS Equestrian Insurance, Liberty, New Ireland, Nicholas Molloy Insurance, Permanent TSB, Royal London, RSA / Benchmark Standard Life, Willis Towers Watson, Yachtsman Euro Marine, Zurich Insurance plc, Zurich Life
12. Regular Reviews
It is in your best interests that you review, on a regular basis, the products which we have arranged for you. As your circumstances change, your needs will change. You must advise us of those changes and request a review of the relevant policy so that we can ensure that you are provided with up to date advice and products best suited to your needs. Failure to contact us in relation to changes in your circumstances or failure to request a review, may result in you having insufficient insurance cover and/or inappropriate investments.
13. Disclosure of Information
Any failure to disclose material information may invalidate your claim and render your policy void.
14, Conflicts of interest
It is the policy of our firm to avoid conflicts of interest in providing services to you. However, where an unavoidable conflict of interest arises, we will advise you of this in writing before providing you with any service. A full copy of our conflicts of interest policy is available on request.
15. Default on payments by clients
We will exercise our legal rights to receive payments due to us from clients (fees and insurance premiums) for services provided. In particular, without limitation to the generality of the foregoing, the firm will seek reimbursement for all payments made to insurers on behalf of clients where the firm has acted in good faith in renewing a policy of insurance for the client.
Product producers may withdraw benefits or cover in the event of default on payments due under policies of insurance or other products arranged for you. We would refer you to policy documents or product terms for the details of such provisions.
Whilst we are happy to receive verbal complaints, it would be preferable that any complaints regarding service are made in writing and addressed to The Managing Director, IPM Draper and marked Private & Confidential. We will acknowledge your complaint in writing within 5 business days and we will fully investigate it. We shall investigate the complaint as swiftly as possible, and the complainant will receive an update on the complaint at intervals of not greater than 20 business days starting from the date on which the complaint is made. On completion of our investigation, we will provide you with a written report of the outcome. In the event that you are still dissatisfied with our handling of or response to your complaint, you are entitled to refer the matter to the Financial Services and Pensions Ombudsman (FSPO). A full copy of our complaint’s procedure is available on request.
17. Data Protection
We are subject to the requirements of The General Data Protection Regulation 2018 and the Irish Data Protection Act 2018.
We are committed to protecting and respecting your privacy. We wish to be transparent on how we process your data and show you that we are accountable in accordance with The GDPR in relation to not only processing your data but ensuring you understand your rights as a client.
The data will be processed only in ways compatible with the purposes for which it was given and as outlined in our Data Privacy Notice.
We will ensure that this Privacy Notice is easily assessable on our website or by hard copy on request.
Please contact us at firstname.lastname@example.org if you have any concerns about your personal data.
18. New Business & Renewal
If you have taken out a life insurance contract, you may cancel the contract by giving notice in writing to us within 30 days after the date you were informed the contract is on cover.
If you have taken out a general insurance contract, and we have not met face to face during the process, you may cancel the contract by giving notice in writing to us within 14 days after the date you were informed the contract is on cover.
If you have taken out a general insurance contract, and we have met face to face during the process, you may cancel the contract by giving notice in writing to the insurer within 14 working days after the date you were informed the contract is on cover.
The giving of notice of cancellation by you will have the effect of releasing you from any further obligation arising from the contract of insurance. The insurer cannot impose any costs on you other than the cost of the premium for the period of cover.
This right to cancel does not apply where, in respect of life insurance the contract is for a duration of six months or less, or in respect of general insurance, the duration of the contract is less than one month.
You are under a duty to pay your premium within a reasonable time, or otherwise in accordance with the terms of the contract of insurance.
A court of competent jurisdiction can reduce the pay-out to you if you are in breach of your duties under the Act, in proportion to the breach involved.
19. Post-Contract Stage and Claims
If, in respect of the insurance contract the insurer is not obliged to pay the full claim settlement amount until any repair, replacement or reinstatement work has been completed and specified documents for the work have been furnished to the insurer, the claim settlement deferment amount cannot exceed
- 5% of the claim settlement amount where the claim settlement amount is less than €40,000, or
- 10% of the claim settlement amount where the claim settlement amount is more than €40,000.
An insurer may refuse a claim made by you under a contract of insurance where there is a change in the risk insured, including as described in an “alteration of risk” clause, and the circumstances have so changed that it has effectively changed the risk to one which the insurer has not agreed to cover.
Any clause in a contract of insurance that refers to a “material change” will be interpreted as being a change that takes the risk outside what was in the reasonable contemplation of the contracting parties when the contract was concluded.
You must cooperate with the insurer in an investigation of insured events including responding to reasonable requests for information in an honest and reasonably careful manner and must notify the insurer of the occurrence of an insured event in a reasonable time.
You must notify the insurer of a claim within a reasonable time, or otherwise in accordance with the terms of the contract of insurance. :
If you become aware after a claim is made of information that would either support or prejudice the claim, you are under a duty to disclose it. (The insurer is under the same duty).
If you make a false or misleading claim in any material respect (and know it to be false or misleading or consciously disregards whether it is) the insurer is entitled to refuse to pay and to terminate the contract.
Where an insurer becomes aware that a consumer has made a fraudulent claim, they may notify the consumer advising that they are voiding the contract of insurance, and it will be treated as being terminated from the date of the submission of the fraudulent claim. The insurer may refuse all liability in respect of any claim made after the date of the fraudulent act, and the insurer is under no obligation to return any of the premiums paid under the contract.
20. Compensation Scheme
We are members of the Investor Compensation Scheme operated by the Investor Compensation Company Ltd. See below for details.
21. Investor Compensation Scheme
The Investor Compensation Act, 1998 provides for the establishment of a compensation scheme and the payment, in certain circumstances, of compensation to certain clients (known as eligible investors) of authorised investment firms, as defined in that Act.
The Investor Compensation Company Ltd. (ICCL) was established under the 1998 Act to operate such a compensation scheme and our firm is a member of this scheme.
Compensation may be payable where money or investment instruments owed or belonging to clients and held, administered or managed by the firm cannot be returned to those clients for the time being and where there is no reasonably foreseeable opportunity of the firm being able to do so.
A right to compensation will arise only:
- If the client is an eligible investor as defined in the Act; and
- If it transpires that the firm is not in a position to return client money or investment instruments owned or belonging to the clients of the firm; and
- To the extent that the client’s loss is recognised for the purposes of the Act.
Where an entitlement to compensation is established, the compensation payable will be the lesser of:
- 90% of the amount of the client’s loss which is recognised for the purposes of the Investor Compensation Act, 1998; or
- Compensation of up to €20,000.
For further information, contact the Investor Compensation Company Ltd. at (01) 224 4955.
22. Brokers Ireland Compensation Fund
We are also members of the Brokers Ireland Compensation Fund. Subject to the rules of the scheme the liabilities of its members firms up to a maximum of €100,000 per client (or €250,000 in aggregate) may be discharged by the fund on its behalf if the member firm is unable to do so, where the above detailed Investor Compensation Scheme has failed to adequately compensate any client of the member. Further details are available on request.