Customer agreed remuneration meaning

Customer agreed remuneration (often abbreviated CAR) describes fees that a retail client expressly agrees to pay to a financial adviser or intermediary for advice, arranging or ongoing servicing, instead of commission from a product provider. It is a descriptive regulatory term rather than a statutory definition. In UK practice (England & Wales, Scotland and Northern Ireland), it is used by the FCA and industry post‑Retail Distribution Review and overlaps with “adviser charging” in COBS 6.1A. Key features include prior disclosure, explicit client agreement to the amount, nature and timing of the charge, and the option for collection either directly from the client or via “facilitation” (deduction from a product or platform with the client’s consent). It is commonly referenced by independent financial advisers and platforms when structuring transparent, non‑commission remuneration. In Ireland, the concept is broadly similar—fees agreed with the consumer are permitted subject to disclosure and inducements rules—but “customer agreed remuneration” is not a defined legislative term. Practice is governed by the Central Bank of Ireland’s Consumer Protection Code and MiFID II inducements regime, which restrict commissions, particularly for independent advice. Across all jurisdictions, the practical significance is clarity of charging, conflict management and regulatory compliance.