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Updated code of conduct for PRSA providers

The Pensions Authority has recently published a revised code of conduct for providers of PRSAs (personal retirement savings accounts).

The code, published after a public consultation, covers the producing, marketing, and selling of PRSA products by investment and insurance firms.

Providers now have six months to ensure that they are compliant with the requirements of the code, which is effective from 1 August.

Co-operation with regulators

Lawyers at McCann FitzGerald have highlighted additional sections that focus on co-operation with regulatory and professional bodies, managing conflicts of interest, providing risk warnings to contributors, and ensuring robust product oversight and governance.

The code says that PRSA providers must maintain open and co-operative relationships with the authority, as well as adhering to specific guidance from the Society of Actuaries in Ireland on the preparation of statutorily required documentation related to PRSA products.

According to McCann FitzGerald, PRSA providers are also required to put in place a comprehensive written conflicts-of-interest policy, with specific requirements for identifying, managing, and disclosing conflicts of interest.

Risk warning

The firm’s lawyers also highlight the inclusion in the code of a standardised risk warning that must be provided to PRSA contributors in advance of any investment in unregulated investment products.

The warning highlights the potential risks and lack of regulatory protections involved with such products.

Under the code, PRSA providers (excluding life assurance companies) must identify target markets for their products, taking “reasonable steps” to ensure that products are distributed to the identified target market. These target markets must be reviewed regularly.

The McCann FitzGerald lawyers urge firms covered by the code to review their current practices to ensure compliance.

They also urge providers to create and implement a written conflict-of-interest policy, and to assess whether they need any additional administrative layers to deal with new requirements on communication and risk warnings.