Procedure for approval to change the charging structure of an approved Personal Retirement Savings Account (PRSA) product

Background

Under section 93 of the Pensions Act, 1990, as amended (the Act), the procedures for the granting of approval of PRSA products are determined by the Pensions Authority (the Authority). Under Part IV (j) and (k) in the PRSA Application for Approval, the applicant certifies that it will promptly notify the Authority of any change in the information provided in the initial application and changes to the features outlined in the Product Specification. Therefore, providers should notify the Authority, in advance, of changes to the charging structure of an approved PRSA product.

Procedure

Step 1

The PRSA provider must contact the Authority, preferably by email (prsa@pensionsauthority.ie).

The correspondence should include:

• a statement that the provider would like to change the charging structure of an approved standard or non-standard PRSA product;
• a list of the approved product(s) and the product code(s) to which it is proposed charging structure changes will apply;
• a statement of the number of contributors to whom the changes will apply;
• a statement of the reason for the decision to change the charging structure;
• details as to how contributors will be notified and a copy of the notification (in the case of an increase in charges, under section 104(11) of the Act). This must be issued to contributors two months in advance of the change of charging structure;
• confirmation that the PRSA products terms and conditions allow for such changes to be made;
• confirmation that the proposed charging structure complies with the definition of charges under section 91(1) of the Act, and
• a revised Product Specification with marked up changes.

Step 2

If the Authority is satisfied that all requested information has been received and is complete, as detailed above, the Authority will notify the provider by email or in writing that the change to the existing product has been approved.

The Authority will aim to notify the provider within 10 working days of receipt of the requested information. Note that where queries arise or all of the required information is not readily available to the Authority, the timeline for consideration may be longer.

Step 3

After the new charging structure has been implemented, the provider must send to the Authority:

• confirmation that relevant marketing materials have been amended;
• confirmation that in the case of an increase in the number or amount of charges, consumers to whom the change in charging structure applies have received an updated Statement of Reasonable Projection outlining the amended charges (under section 112(4) of the Act, in the case of an increase in the number or amounts of charges, this is required within 7 days of the changes coming into effect), and
• a copy of the notification of the change to charging structure that was sent to contributors, which should include the date of issue.

Step 4

When the Authority has received and is satisfied with the information listed at 3 above, the PRSA Providers and Charges Register, which is displayed on our website, will be updated accordingly.