| Commentary

357 Sub-distributor’s fees

| Commentary

357 Sub-distributor’s fees

A producer will normally seek to limit the total of all fees and commissions paid to all distributors and all sub-distributors to a maximum percentage of remitted gross receipts. Where a sub-distributor is involved, a producer will normally seek to limit the amount recoverable by a distributor. The distributor’s fee should also be calculated with reference to remitted income and not income received at source by the sub-distributor, otherwise it would be calculated on the higher amount. Provisions allowing for the deduction by the distributor of sub-distribution expenses from net income (ie a double deduction, since they

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