Full question:

For the last couple of months we have been dealing with a provider’s mandate. The question is could you define the typical rate of commission paid on transactions within the energy segment – and what would this fee be based upon?

Answer:

You must read the URPIB rules in my book.

A true mandated “provider” works for his identified primary and the intermediaries such as us act for the unidentified primaries.

In the event that the mandated provider has not yet given you the mandate ship paper work that identifies the primary provider then this should indicate that he in fact has no mandate – no provider and is simply one more misguided intermediary out there.

An actual mandate holder will be reimbursed by his primary – therefore his primary must also permit or approve commission fees paid to each intermediary taking part in the transaction – normally this won’t occur since the primary is just obliged to pay his mandate holder – therefore the opportunity to bypass others fees is ample.

When the mandate holder is verified he is then dealt with in the same manner as the “provider” which means the individual who manages the entire group “purchases” the products from the “provider” in order to resell all the a “final purchaser” at an elevated cost – utilizing the same funding from the final purchaser according to the estimate provided.

The median managing intermediary – the stated “purchaser/ provider” – then receives the commission fees subsequent to the transaction being completed and reimburses the approved commission fees to every intermediary who took part in the transaction from all parties. Essentially, an actual mandate holder IS NOT PERMITTED TO REQUEST ANY PORTION OF THE INTERMEDIARY FEE, SINCE IT IS INAPPROPRIATE AND UNPRINCIPLED AND MAYBE EVEN UNLAWFUL TWO RECEIVE A COMMISSION FEE “TWO TIMES”.

Therefore, follow the thread below for a representative kind of agreement:

1) Provider/ and or registered mandate holder
2) Locating intermediary
2) Locating intermediary
2) Locating intermediary
2) Locating Intermediary
3) INTERMEDIARY PURCHASER/ PROVIDER
4) Locating intermediary
4) Locating intermediary
5) FINAL PURCHASER/ AND OR REGISTERED MANDATE HOLDER

NUMBER ONE IS A SINGLE PARTY – 2-3-4: ARE RELATED INTERMEDIARY PARTY – NUMBER FIVE IS A SINGLE PARTY – NO ONE MOVES BEYOND NUMBER THREE (3) INTERMEDIARY THE PURCHASER/ PROVIDER – NUMBER (3) INTERMEDIARY TRADES THE PRODUCTS TO THE FINAL PURCHASER FOR AN ELEVATED COST – NUMBER (3) RECEIVES COMMISSION FEE PROTECTED WHEN THE DLC IS REASSIGNED – NUMBER (3) RECEIVES COMMISSION UPON DELIVERANCE OCCURRING – NUMBER (3) REIMBURSES EVERY INTERMEDIARY FROM NUMBER FOUR (4) AS WELL AS NUMBER TWO (2) PARTIES – NO POSSIBILITY TO BYPASS COMMISSION FEES EXCEPT IF NUMBER THREE (3) TURNS OUT TO BE A SCAM ARTIST.

THEREFORE YOU SHOULD JUST TRANSACT WITH NUMBER (3) WHO OSTENSIBLY UNDERSTANDS WHAT IS REQUIRED TO COMPLETE THE TRANSACTION AND YOU FEEL COMFORTABLE AND HAVE FAITH IN THIS PERSON – UNFORTUNATELY ALMOST EACH AND EVERY PURCHASER/ PROVIDER FOUND ON THE INTERNET TODAY IS MISINFORMED AND HAVE NO UNDERSTANDING ABOUT WHAT THE INDUSTRY IS ALL ABOUT OR HOW TO COMPLETE A TRADE.

THEREFORE IF YOU WISH TO BE ONE HUNDRED PERCENT CERTAIN YOUR COMMISSION FEE WILL BE SECURE THAN YOU MUST MAKE SURE YOU ARE IN POSITION NUMBER THREE (3) AND IN ENTIRE CONTROL OF THINGS. BEING IN THE NUMBER THREE POSITION MEANS YOU MUST HAVE A SOLID BASIS OF UNDERSTANDING REGARDING THE INTERMEDIARY TRADING PROTOCOLS OR YOU CAN KISS ANY FEES FAREWELL.

In the event you are not in the third spot (3) then you need to connect yourself with a trusted and competent trader that can secure that third spot (3) if you are able to source one out capable of managing the transaction properly.

This is simply the only method of being certain you are going to be paid on an effectual transaction.
I do not know how to make the above wording any clearer. The trade procedures online (LOI, ICPO, MPA, NCNDA…etc…and so on) are inadequate and ineffective intermediary protocols.

As far as the standard rates are concerned – this can be found at the ITSI website under URPIB rules – Fuel trades are usually coming in a $1.00 U.S. for a barrel for each person in the trade from (2) to (4) and splitting with number (3) who receives the biggest split – if the reduction provided is larger – the final purchaser would receive this as an incentive to purchase – not the intermediaries. When you trade anything such as crude oil purchaser end $4.00 for a barrel – providers end at $4.00 for a barrel – you should toss out the transaction because you are spinning your wheels and wasting your effort.

Commission fees cannot be hidden – they are written into the providers bill of lading as a “consultancy fee” and the final purchaser won’t permit his funds to be utilized for reimbursing the intermediaries at $8.00 per barrel for their commission fees – this just is not going to occur – however, he will not protest if he was given a reduction of $7.00 per barrel and the intermediaries all split $1.00 per barrel between them.