Personal Retirement Savings Accounts (PRSA) Decision Reference 2022-0369

• Case Outcome: Rejected
• Reference: 2022-0369
• Date: 17 November 2022
• Year: 2022
• Subject Matter: Personal Retirement Savings Accounts (PRSA)
• Finantial Sector: Investment
• Conducts Complained Of: Failure to advise on tax implications/tax relief

Decision Ref:

2022-0369

Sector:

Investment

Product / Service:

Personal Retirement Savings Accounts (PRSA)

Conduct(s) complained of:

Failure to advise on tax implications/tax relief

Outcome:

Rejected

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

The complaint concerns the Provider’s payment of the Complainant’s pension benefits from

an Approved Retirement Fund (ARF) in the amount of €1,200.00, on a monthly basis, and

the associated application of the revenue tax credits in relation to this payment on a weekly

basis. The Provider is the appointed registered administrator of the ARF.

The Complainant’s Case

The Complainant submits that she retired on in October 2018, having reached the age of 65.

She further submits that she had set up a Personal Savings Retirement Account (PRSA)

through her broker, which she paid into on a monthly basis.

The Complainant states that before her retirement, she contacted her broker to get advice

on the options open to her, and she agreed to take out an ARF from the proceeds of the

PRSA which would yield her an income of €1,200.00 monthly, to enhance her primary

pension.

The Complainant further states that she contacted Revenue and agreed the allocation of

monthly tax credits and rate bands for both her primary pension and her income from her

ARF, because the ARF payments from the Provider were monthly. The Complainant

contends that she received a tax certificate confirming these monthly allocations.

The Complainant says that she received a letter from the Provider on 10th January 2019

which confirmed: