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Yes. Bright Grey is one of the few providers that still offers commission on a reduced earnings period (REP) of 2 years. By choosing Bright Grey, you can benefit from receiving your total commission over 2 years instead of 4. We know that some advisers value this option so we'll continue to offer it, as long as it's commercially viable to do so.

The advantage to you of receiving commission on a reduced earnings period of 2 years is that you will have received the full amount of commission, even if your client cancels the plan after 2 years.

Advisers and providers want business to stay on the books for as long as possible and we calculate payment of commission on the basis that a plan will be on our books for a considerable number of years.

We're entitled to claw back a proportion of commission if the plan is cancelled in the early years. The majority of providers do this over the first 4 years, known as full earnings period (FEP).

However, we also have to acknowledge that a shorter earnings period creates a greater risk of the plan going off the books early and therefore harming our revenue.

If a REP plan is cancelled in the first year, we claw back the same amount of commission that we would if the plan had been a FEP. This is a slightly higher amount than set out in the standard Lautro tables used by the very few other companies that offer REPs. But we believe that this is a fair price for the continued availability of REPs.

This graph shows how we calculate the percentage of commission we claw back each month.

Yes. You can choose to change from a 2-year earnings period to a 4-year earnings period at any time. Please contact distribution@brightgrey.com for more information.

It depends on the terms of business you have with us. For example, if you belong to a network that has negotiated the option of a 2-year earnings period, yes you can choose. However, if your current agency agreement with us is on a full earnings period then you can’t change to a 2-year option without our agreement and your agency's permission to do so.

No, we only pay commission on a 2-year earnings period on our Personal Protection Menu. We will pay commission on all other products on a 4-year earnings period.

In some cases we may agree to pay different rates of Lautro commission depending on whether you choose 2-year or 4-year earnings. If you choose 2-year earnings, we will pay the rate agreed for 2-year earnings on all plans you write. But commission will be earned over the full 4-year earnings period for products that are only available on a 4-year earnings period basis.

Our terms of business don’t drill down to the level of commission detail so that we have more flexibility to adapt to market conditions but still meet advisers’ needs. This allows us to offer competitive commission terms at all times.