Terms of Business – Version 11 Effective as of 01.09.2021
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
Hedderman Financial Solutions (HFS) C44394 is regulated by the Central Bank of Ireland as an insurance intermediary registered under the European Union (Insurance Distribution) Regulations 2018 as an Investment Intermediary authorised under the Investment Intermediaries Act, 1995. 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
HFS 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.
HFS is a member of Brokers Ireland (BI). Our principal business is to provide advice and arrange transactions on behalf of clients in relation to Life, Pensions, Savings & Investments, Deposits and other insurance products. A full list of insurers and product producers who we deal with is available on request.
HFS acts as a Financial Broker and
(a) the principal regulated activities of the firm are provided on the basis of a fair and personal analysis of the market
- b) you have the option to pay in full for our services by means of a fee
- c) we are not tied to any Financial Firm, Insurance Company, Bank or Stockbroking Firm and retain the flexibility to recommend the most suitable options to meet our client’s objectives. In addition to these regulated activities, HFS provides services in the area of financial planning, which is a financial service that is not regulated by the Central Bank of Ireland and for which specific fees will be quoted in advance of any work undertaken.
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. 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 clients’ 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 such that could be reasonably 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.
Life & Pensions, Deposits & Savings & Investments
HFS provides life assurance, pensions, deposits, savings and investments 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 on 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 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 it is our policy to 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; and d) the reductions applied to the benefit where there are disability payments from other sources.
For a specified critical illness policies, we will explain clearly to you the restrictions, conditions and general exclusions attached to that policy.
Disclosure of Information
Any failure to disclose material information may invalidate your claim and render your policy void.
Statement of Charges
HFS is remunerated by commission and other payments from product producers on the completion of business. We may earn our remuneration on the basis of fee, commission and any other type of remuneration, including an economic benefit of any kind offered or given with the insurance contact. You may choose to pay in full for our services by means of a fee. Where we receive recurring commission, this may form part of the remuneration for initial advice provided. In certain circumstances, it will be necessary to charge a fee for services provided. These are listed below. In other 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 the method of calculation of the fee.
Schedule of Fees and Charges
We will be remunerated for business services we offer you our client in a number of ways:
- By commission earned from Insurers and Product Producers to whose orders are transmitted. Summary details of these payments will be included in a product information document
- By you directly in the form of a fee which we will discuss and agree in advance of all transactions; see Fee Table
- You also have the option to pay for the services we provide by way of a combination of commission and fees which we will discuss and agree in advance of all transactions
Fee Table for Advisory and Financial Planning Services
Fees may be charged on an hourly rate. This will always be discussed and agreed in writing in advance of any work being undertaken on a client’s behalf.
€ (Hourly Rate Ex VAT)
Certified Financial Planners
Client File Managers/
Qualified Financial Advisers
Additional fees may be incurred for complex cases to reflect expertise or urgency. Professional fees are non-refundable in the event of a policy being cancelled.
We reserve the right to charge a fee for processing and submitting applications on behalf of clients. In the event of the policy not being issued or the client not proceeding, a fee of amount is €300.00 is chargeable. In the event that a product arranged on your behalf is redeemed which results in Hedderman Financial Solutions being required to refund commissions received, we reserve the right to charge you a fee for the services provided up to the amount of commission refunded.
Periodic Assessment of Suitability: Insurance based Investments Instruments (IDR) and other Investment Instruments (MiFID)
Ongoing suitability assessments will form part of the service to clients whose investments come under the remit of the MiFID Regulations 2017 and the Insurance Distribution Regulation 2018. Where your investment falls under these regulations, we will provide you, on an annual basis, with a client report summarising how the investment needs and objectives and your risk profile or not as the case may be determined.
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.
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. In particular, without limitation of 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 are made in writing. 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 Complaints Procedure is available on request.
We operate to the highest standards of client confidentiality and meet statutory requirements under the Data Protection Acts 1998 to 2018, and the European Union’s General Data Protection Regulation effective from 25th May 2018. Our staff and support service providers will use your personal information to offer advice on suitable products, service your business on an ongoing basis, monitor services for quality control purposes, or as otherwise required by law. For these purposes we may share your contact details and other relevant information with product providers and our support service providers, for the purposes of providing you with appropriate advice.
We would also like to offer you products and services which we think may be of interest to you. In order to do so, we would like your consent so that we may contact you by letter, email, SMS text, or telephone (mobile and landline). You have the right to ask us not to send marketing information to you at any time. Full details of our Data Privacy Notice – Customer Summary is available on request or on our website www.heddermanfinancial.ie
We are members of the Investor Compensation Scheme operated by the Investor Compensation Company DAC. 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 DAC (ICC DAC) 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 DAC at (01) 224 4955.
Consumer Insurance Contracts Act 2019
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.
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.
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.
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.
Sustainable Finance Disclosure Regulation
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.
Governing Law and Language
The laws of Ireland form the basis for establishing relations between you and our firm. All contracts, terms, conditions and communications relating to any policies you may enter into with this firm will be in English.
Anti – Money Laundering/Countering the Financing of Terrorism
HFS reserves the right to request any facts about a client which it reasonably believes it needs to know in order to comply with the prevailing Criminal Justice (Money Laundering and Terrorist Financing) legislation.
Brokers Ireland Compensation Fund
As a member of Brokers Ireland (BI), HFS is also a member of the Brokers Ireland Compensation Fund. Subject to the rules of the Scheme the liabilities of its member firms up to a maximum of €100,000 per client (€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 ICC DAC (established by law) has failed adequately to compensate any client of the member. Further details are available on request.
I/We acknowledge and confirm that I/we have been provided with a copy of the Terms of Business of HFS and that I/we have read through and understand these terms.
Consent for Marketing
Please tick each of these boxes to give your consent so that HFS may contact me/us regarding any products which we think may be of interest to you.
Letter Landline Mobile Phone
Email SMS Text
Signature: _____________ Signature: ________________
Date: __________________ Date: ____________________
Hedderman Financial Solutions Terms of Business V11 September 2021
Hedderman Financial Solutions Ltd trading as Hedderman Financial Solutions is regulated by the Central Bank of Ireland. Registered in Ireland.
Registered office : 35 Marlfield, Cabinteely, Dublin 18.
Hedderman Financial Solutions Ltd trading as Hedderman Financial Solutions is registered in Ireland (Company No: 430074)
Hedderman Financial Solutions Ltd trading as Hedderman Financial Solutions (C44394).
A private company limited by shares and having a share capital. Directors: Mark Hedderman CFP®, BA QFA, SIA, RPA. Suzanne Hedderman