How it's worked out
Override = the team's FYC (or premium) x the override rate. The rate, what it's paid on and how many tiers it reaches are all in the manager's contract, so two firms can pay very different overrides on the same team. Some pay a manager of managers a second, smaller override on the teams below.
The override comes on top of the advisor's own commission. It doesn't come out of it.
In Singapore an override counts as variable income under MAS's balanced scorecard, set out in Notice FAA-N20, and for a manager paid on variable income only, 60% of it is measured against how their advisors are graded, with the manager keeping the same share of that 60% as each advisor keeps of theirs.
Worked example, with a made-up rate of 20% on FYC. An advisor in your team writes S$5,000 of FYC this quarter, so your override on it is S$1,000.
- S$400 of it isn't measured, and you're paid it in full.
- S$600 is measured against that advisor's grade.
- If their grade leaves them 75% of their measured share, you get 75% of yours too: S$450.
- So that advisor's business pays you S$850 of the S$1,000.
Across a team of 6 writing S$30,000 of FYC in a quarter, the same 20% is S$6,000 before any grades.
Where it shows up in your week
An override is a rate on an amount, like any commission. The sales commission calculator works out a flat rate or tiers on any figure, so you can check a quarter's override against your statement.
Related terms
Questions advisors ask
Sources
- MAS Notice FAA-N20, the Balanced Scorecard Framework (last revised 29 December 2025): the definition of a supervisor's variable income and paragraphs 5.1 to 5.3, read 27 September 2026
- Membership Information for the 2027 Million Dollar Round Table, MDRT, dated 1 September 2026: what the commission method doesn't count, read 26 September 2026