Reminder: Sale of PRSA’s
Thu Jun 1 2023
Members are reminded that when advising and selling Standard and Non-Standard PRSA’s the following additional documentation needs to be provided to the client along with the standard sales compliance documentation.
- Prior to offering, recommending, arranging or providing a Personal Retirement Savings Account (PRSA), you are required to provide the consumer with a PRSA information document – Appendix B of the Consumer Protection Code.
- Where a Non-Standard PRSA is recommended, a Non-Standard PRSA Declaration should be completed – Appendix C of the Consumer Protection Code. This document must be signed by both the intermediary and the client.
- Certificate of comparison – where the client is a member of an occupational pension scheme and are transferring their benefits into a PRSA. The client should get this certificate before transferring from an occupational pension scheme to a PRSA. This is drafted by an actuarial firm, either the client or the broker on behalf of the client organises this. The written statement should outline the reasons why such a transfer is in the clients’ best interests. Note: The certificate is not required if the scheme is being wound-up and transferred to a PRSA
- Preliminary Disclosure Certificate – this must be given to the client before signing the PRSA application form. It outlines benefits on a sample or personalised basis that can be reasonably expected from a certain period, based on a number of assumptions (Product provider will provide you with this)
- Disclosure Certificate – where the PRSA contract is replacing an existing PRSA contract or Retirement Annuity Contract (RAC), this document is to be provided to the individual before the initial Statement of Reasonable Projection is issued. (Product provider will provide you with this).