Part 2: PRSA Reporting

One of the many advantages of the PRSA, from a client’s point of view, is the extensive reporting obligations imposed on the PRSA provider by the PRSA Regulations. From the advisor’s point of view this is the boring bit! You don't need to worry about them, as the PRSA provider we will look after all that. However, it might be useful for you to know.

1. A Preliminary Disclosure Certificate (PDC) must be provided to the client before they enter into a contract. The PDC specifies the benefits and the level of them which the client could reasonably expect to receive from the PRSA contract. The PDC is required to disclose all potential and actual commissions payable and details of any other charges. Note in a Non Standard PRSA this is usually a generic document.
2. Statement of Reasonable Projection (SORP) must be furnished to the contributor within seven days of the date of signing up to the PRSA. The PRSA provider is required to ensure the SORP contains a cancellation notice and information regarding charges. Following on from this, an SORP should be provided to the client on an annual basis. 
3. The PRSA provider is required to give to the client a Statement of Account at intervals not greater than six month’s duration.  This statement of account must:
• Show the total contributions paid since inception and, where a statement of account has previously been issued, the total contributions paid since the last statement.
• Where appropriate, distinguish between employer and employee contributions.
• Contain the PRSA value at the date of preparation of the statement. For this purpose the value is taken as the amount that would be available for transfer on the date of preparation of the statement.
4. The PRSA provider must provide an Investment Report to the client, at intervals not greater than six months, showing the investment performances of all funds in which the PRSA has invested in.

There is an old saying that says a camel is a horse designed by a committee. Well if that is the case a PRSA is definitely a pension designed by a committee of actuaries! No matter, it achieves a great result and we will deal with the onerous parts, so you can focus on the benefits the PRSA brings. 

Paul Gilmer