How Clearstone Is Paid
How we’re paid
depends on the work.
Clearstone may receive fees and commissions for the products, solutions and implementation work we provide. In most cases, our compensation is paid by a lender or insurance carrier rather than directly by you.
When a client-paid fee applies, the work and fee arrangement are disclosed in writing and agreed to before billable work begins.
The basic model
Three different things can be involved.
Fees
Some agreed service or implementation work may involve a fee paid directly by the client.
Commissions
May arise through mortgage, insurance or insurance-product relationships.
Product costs
Interest, insurance premiums and contract costs belong to the underlying product or financing arrangement. They are not automatically the same thing as Clearstone’s compensation.
Common examples
Who pays depends on the relationship.
These are common examples, not a universal fee schedule. The exact arrangement depends on the service and circumstances.
| Relationship | How payment can work | Where the detail lives |
|---|---|---|
| Mortgages | A lender or client may pay, depending on the circumstances. Lender-paid compensation may flow through the mortgage brokerage relationship. In some circumstances, a client-paid brokerage fee may apply. | Applicable mortgage disclosure and service documentation. |
| Insurance | Insurance carrier. A carrier may pay commission through the applicable insurance distribution relationship. | Applicable insurance and disclosure documentation. |
| Insurance-based investments | Compensation may be paid through the applicable insurer and insurance-product distribution relationship. Product and contract costs are a separate question. | Issuer documents and applicable Clearstone disclosure. |
| Specialized implementation work | Client. Some separately agreed implementation work may involve a client-paid fee. Additional billable work may apply outside the agreed scope. | Applicable engagement or service agreement. |
Product cost and compensation
They are two different questions.
What does the product cost?
Mortgage financing
Interest is part of the lending relationship.
Insurance
Premiums are paid under the insurance contract.
Insurance-based investments
Product and contract costs are set by the applicable contract and issuer documents.
How is Clearstone paid?
Clearstone is not a bank, lender, insurer or insurance carrier.
We do not receive the mortgage interest or insurance premium itself. Clearstone’s compensation is explained separately through the documents that apply to the service or transaction.
Compensation and conflicts
Compensation can vary. That is worth understanding.
Compensation arrangements can differ between services and circumstances, and those differences can create potential conflicts.
The compensation and conflict information that applies to a service or transaction belongs in the relevant documentation and formal disclosures.
If something is unclear, ask before you proceed.
What to ask
Questions worth asking.
You should be able to understand the compensation relationship that applies to your situation.
Who is paying the compensation in my situation?
Could I be responsible for a direct fee?
Which costs belong to the product or contract itself?
Could compensation differ between the options being considered?
Where is the compensation and conflict information that applies to me?
For planning and discussion only. Not legal, tax, or accounting advice.
Questions about your situation?
Have a question about how this would apply to you?
Ask before you move forward. We can explain the compensation relationship that applies to your service or transaction and point you to the relevant documentation.