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.
Authorisation with the Central Bank of Ireland
CML Financial Limited trading as CML Financial (C46840) is regulated by the Central Bank of Ireland as an Insurance Intermediary registered under the European Communities (Insurance Distribution) Regulations, 2018; as an Investment Intermediary authorised under the Investment intermediaries Act, 1995 and as a Mortgage Intermediary authorised under the Consumer Credit Act, 1995 and as a Mortgage Credit intermediary under the European Union (Consumer Mortgage Credit Agreements) Regulations 2016. 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.
Codes of Conduct
CML Financial 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.
Our Services
CML Financial is a member of Brokers Ireland.
Our principal business is to provide advice and arrange transactions on behalf of clients in relation to life, pensions, savings, investments and mortgage products. A full list of insurers, product producers and lending agencies with which we deal is available on request.
CML Financial acts as a Financial Broker in the following way:
and
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, 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.
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 what 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 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:
There is no obligation for you to accept any recommendations given.
Life & Pensions/ Deposits & Life Wrapped Investments
CML Financial provides life assurance and pensions on a fair and personal analysis basis.
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 policies 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 PHI and Serious Illness policies.
Specifically, on the subject of permanent health insurance policies we will explain to you;
A – The meaning of disability as defined in the policy
B – The benefits available under the policy
C – The general exclusions that apply to the policy
D – 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.
Mortgages
Through the lenders or other undertakings with which we hold an agency, CML Financial 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.
We will need to collect sufficient information from you before we can offer any advice on housing loans. This is due to the fact that a key issue in relation to mortgage advice is affordability. Such information should be produced promptly upon our request.
Disclosure of Information
We must gather and record sufficient information from a customer in order to make an offering, recommendation, arranging or providing a product or service appropriate to the customer. The information required is general personal details, needs and objectives, the current and past financial situation of the customer. This information is not shared with external companies other than where we intend to place the business and is primarily taken so we can provide our customers with suitable product. You are not obliged to give us this information, but this may result in us not being able to do business with you.
Any failure to disclose material information may invalidate your claim and render your policy void.
Sustainability Factors – Investment / IBIPs/ Pension Advice
In accordance with the Sustainable Finance Disclosure Regulation (‘SFDR’), we inform you that when providing advice on insurance-based investment products/investments, we do not assess, in addition to relevant financial risk, relevant sustainability risks as far as this information is available in relation the products proposed/advised on. This means that we do not assess environmental, social or governance events/conditions that, if they occur, could have a material negative impact on the value of the investment.
When providing advice on insurance-based investment products (‘IBIPs’) or investment advice we do not consider the impacts of our advice that result in negative effects on sustainability factors (namely environmental, social and employee matters, respect for human rights, anti-corruptions and anti-bribery matters), because the area of sustainable is relatively new and as the issue progresses, we will review our position. CML Financial will review this approach on an annual basis in January.
Statement of Charges – (Commission & Fees)
CML Financial may earn our remuneration on the basis of a fee payable by the client, commission paid by product providers and receiving a non-monetary benefit or on the basis of a combination of these methods. A non-monetary benefit will only be accepted if it enhances the quality of the service to our clients.
A summary of the details of all arrangements for any fee, commission other reward or remuneration paid or provided to us which have agreed with product providers is available on our website – www.cmlfinancial.ie
Alternatively, you may choose to pay in full for our services by means of a fee. The hourly rates are set out below.
In certain circumstances, it will be necessary to charge a fee for services provided. These are listed below:
As it takes a significant amount of time to prepare a suitable product recommendation, if we carry out this work for you and you then place the business direct with the product provider or with another intermediary, we will charge you a fee for the time taken in preparing the product recommendation. Please see our schedule of fees.
Where we receive recurring commission, this forms part of the remuneration for initial advice provided. We reserve the right to charge additional fees if the number of hours relating to on-going advice/assistance exceeds 5 hours.
In circumstances where fees are chargeable or where you choose to pay in full for our service by fee, we will notify you in advance and agree the scale of fees to be charged if different from the 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 will become the amount payable to the firm unless an arrangement to the contrary is made.
In all cases, if fees are to be charged for our service, we will notify you in advance of same.
Life, Pensions, Insurance based investmetn Products and Investment Products Schedule of Fees
You may elect to deal with us on a fee basis. The following is the rate chargeable per hour:
Principals / Directors €130 / hr
Senior Advisers €80 / hr
Associates €55 / hr
Support staff €30 / hr
Additional fees may be payable for complex cases or to reflect value, specialist skills or urgency our scale of fees for such cases range from a minimum of €55 per hour to a maximum of €130 per hour. We will notify you in advance and agree the scale of fees to be charged.
Clawback
If we receive commission from a product provided (and off-set the commission against the fee which we would otherwise have charged you) but the commission is subsequently clawed-back by the provider because of early encashment by you or because the assets or business transfer to another provider or in any circumstances consequent on your actions or omission, we will charge a fee to you that is equal to (100% of) the clawed-back commission. That fee will be owing in simple contract upon the claw-back of the commission.
Mortgages
We will receive 1% of the mortgage balance in commission from the mortgage lender on drawdown of funds. If the mortgage is below €100,000 there will be a fee charged to bring the total commission earned to €1,000. Eg mortgage €80,000, commission earned from lender €800, fee paid from the applicant €200.00.
If we place the mortgage business through Brokers Ireland Mortgage Services, there is a broker fee payable to Brokers Ireland Mortgage Services (currently €350.00). As we will be making the application to Brokers Ireland on your behalf CML Financial will charge a fee of €350 in relation to brokers Ireland applications only.
Please note that lenders may charge specific fees in certain circumstances and if this applies, these fees will be specified in your Loan Offer. You have the right to pay a fee separately and not include it in the loan. Typically, this situation arises in relation to specialist lending.
If we provide mortgage advice and obtain an Approval in Principle / Loan Offer for you and you subsequently do not proceed to a draw down, we will charge you an arrangement fee of €350 for our services
Ongoing Suitability
Investments: Ongoing suitability assessments form part of the service to clients. These will be performed by way of report on an annual basis. This report will outline changes in the services or instruments involved and or/ the client’s circumstances.
Insurance based Investment products: We will provide periodic assessments of the suitability of the insurance-based investment product which we have recommended to you.
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 cover and/or inappropriate pensions / investments.
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.
Default on Payments by Clients
Our firm will exercise its legal rights to receive payments due to it from clients (fees and insurance premiums) for services provided.
Product producers may withdraw benefits or cover in the event of default on payment 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.
Mortgage lenders may seek early repayment of a loan and interest if you default on your repayments. Your home is at risk if you do not maintain your agreed repayments.
Complaints
Whilst we are happy to receive verbal complaints, it would be preferable that any complaints are made, in writing. Complaints can be sent in writing to The Compliance Officer, CML Financial Limited, The Business Centre, Lisfannon, Buncrana, Co Donegal or by email to info@cmlfinancial.ie.
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 you 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 and a final response within 40 business days. 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 your complaint, you are entitled to refer the matter to the Financial Services and Pensions Ombudsman (FSPO). A full copy of our complaints procedure is available on request.
Data Protection
CML Financial complies with the requirements of the General Data Protection Regulation 2016 and the Irish Data Protection Act 2018.
CML Financial is 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 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, this will be given to all our clients at the time of data collection. We will ensure that this Privacy Notice is easily assessible. Please refer to our website www.cmlfinancial.ie, if this medium is not suitable, we will ensure you can easily receive a hard copy in office or by post.
Please contact Alice Lynch at alice@cmlfinancial.ie if you have any concerns about your personal data.
Consumer responsibilities arising out of the Consumer Insurance Contracts Act 2019 which was implemented to protect consumers.
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.
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.
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, in proportion to the breach involved.
Post-Contract Stage and Claims
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 both you and the insurer 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.
Compensation Scheme
We are members of the Investor Compensation Scheme operated by the Investor Compensation Company Ltd. See below for details.
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:
Where an entitlement to compensation is established, the compensation payable will be the lesser of:
Or
For Further information, contact the Investor Compensation company Ltd. at (01) 224 4955
Brokers Ireland Clients Compensation and Membership Benefits Scheme (BIC)
We are also members of the Brokers Ireland Clients Compensation and Membership Benefits Scheme (BIC). 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 firms 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.
Insurer/Provider Security
We cannot and do not guarantee the solvency or continuing solvency of any product provider recommended, nor do we guarantee the solvency of any third party used by a recommended product provider. Please note that the financial position of a product provider can change after a transaction has been effected.
Client Identification
We shall not be held responsible if we are unable to effect transactions for clients due to any delay in presenting the necessary Anti Money Laundering identity verification checks, as required under the Criminal Justice Act 1994.
Where the identity checks are delayed either by a failure on the part of the client or any other reason, we shall not be responsible for any loss incurred due to the delay in investing client monies.
Premium Handling / Client Monies
We do not accept payments in cash. We will accept payments by cheque or bank draft made payable to the product provider only. We are not authorised to accept cash or negotiable instruments in any other circumstances.
* Terms of Business Rev11– from 08/11/2023– to present
CML Financial Limited trading as CML Financial is regulated by the Central Bank of Ireland
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