# Restricted Intermediaries Excluded From PRSA's



## Mithrandir (15 Feb 2002)

Early indications from the passing of the Pensions Bill and amendments seem to preclude RIAPI's aka Restricted intermediaries from the PRSA market, apparently over fears of miselling out of occupational schemes. This is buffered by rules which only require employers who do not have pension schemes to provide PRSA deduction, ie PRSA sellers are being steered clear of existing schemes.

It may be that the Pensions Board and Central Bank who will be responsible for regulating the Product, and the Providers respectively are sending a message to the market. It is to be the preserve of Authorised Advisors, it seems.

This reopens the debate about polarisation and the creation of two distinctly different tiers of advisors.


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## Mithrandir (15 Feb 2002)

*Update*

Life Offices, happily, do not now have to set up separate PRSA companies, duplicating costs and just keeping the Pensions Board content. The PB is only going to be responsible for the product. But Life Offices can directly offer PRSA POLICIES. As POLICIES and not PRSA Accounts, restricted intermediaries will have a role to play, as the agents of certain life offices.

That makes more sense, as exclusion would have been unfair, arguably anti-competitive, and not in consumers best interests, particularly at the low paid end of the market.


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## Liam D Ferguson (15 Feb 2002)

*Re: Update*

Thanks for the update, Mithrandir.  I had been polishing my armour for battle until I saw it!


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## Conan (15 Feb 2002)

*PRSAs and Restricted Intermediaries*

If the original draft Pensions Bill requiring existing Irish insurers to establish a seperate company in order to market PRSAs had gone ahead, then not alone would Restricted Intermediaries be unable to sell PRSAs (because they would only have agencies with the Insurance Company , not the seperate PRSA Company), but indeed the direct sales divisions of such companies would not be able to sell PRSAs either, as such PRSAs were not classified as "insurance products". Thankfully for all concerned, customers and intermediaries, the Dept has seen the light. As the PRSA product is mainly aimed at the "unpensioned" market, the wider the distribution base the better.
On a seperate point, it will be interesting to see what provisions are included in order to discourage members of occupational pension schemes switching into PRSAS.


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