Royal London Ireland enters Personal Retirement Savings Account market

The person that's selling you the product, or the one that you're buying it from, will dictate the charging structure. There are 33 structures. If you think that's a lot, it's not.

If price is someone's only consideration then they definitely are a player. They have active and passive (Blackrock) options and 8 passive are priced at 0.05% less than the active options. RL is a mutual so they have a unique Value Share feature . At the company's discretion whether they declare an award or not but in last two years it translated as a 0.13% reduction in AMC for each year (T&Cs apply).

There are just two allocation rates (98% - less than €100pm or €10,000 lump sum - & 100%) and AMCs can go up as far as 1.50% pa. There is no Standard PRSA option, just Non-Standard.

Good to see more choice. They might struggle with brand awareness here. THB, I've no experience of dealing with them in the past so I don't know what their processes are like and how quickly they respond with general or technical queries. It might take them a while to get a foothold as decisions on choice of PRSAs (and potentially Vested PRSAs) aren't taken quickly. The changes from unlimited to 100% salary on contributions may also affect volumes. But, overall, very welcome competition in a now very competitive space.
 
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RL offering similar base AMC for ARF’s over 100k.
100% allocation and 0.40% base AMC reduced to 0.35% on a good selection of BlackRock index funds. Very transparent.
Add broker/adviser charges and other ongoing fund management costs.
A welcome development and seems to be an improvement on their previous AMC’s.
 
I'd like verification from any brokers or customers on here regarding the costs associated with transferring over 100k into a Royal London PRSA. Is it really only 0.35% AMC for a Blackrock passive fund, with 100% allocation? If so, I'm gonna transfer my PRSA from Aviva (0.8% AMC) to Royal London (0.35%) asap. It looks like a game changer in the PRSA market...
 
I would also like to know more about pricing for Royal London's PRSA offering. Say for an execution-only AVC PRSA, Blackrock developed country equity.
 
None of their documents list the charges, you can only find them via a broker chargesheet. However the pension authority lists the names off all companies selling prsa products and the individual names of each one also. Royal Londons and some others have helpful names for their individual PRSAs.
 

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I rang Royal London today, and I was informed that they set up PRSAs via brokers only, not directly with customers. Their cheapest AMC is available at 0.4% (plus whatever extra renumeration the broker takes on top of that).
 
Are there any brokers or financial advisers who offer the Royal London PRSA on an execution-only basis, and who charge an initial flat rate set-up fee only? I would prefer this to an ongoing annual broker charge of circa 0.25%, which adds up to tens of thousands over time.
 
Setforlife said:
None of their documents list the charges, you can only find them via a broker chargesheet. However the pension authority lists the names off all companies selling prsa products and the individual names of each one also. Royal Londons and some others have helpful names for their individual PRSAs.
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Does anyone know if there are any execution only brokers offering the 0.4% product?

I wonder what would be required to qualify for that product. Potentially RL requires a minimum fund size? Maybe you have to be an employee of RL to qualify? Potentially there is no or very low payment included for the broker in that one, in which case potentialy, one would have to pay more to the exuection-only broker up-front for their time (or via some other method)
 
SPC100 said:
Does anyone know if there are any execution only brokers offering the 0.4% product?
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You mean so that the only charge is RL's 0.4% on the relevant funds (and maybe subject to some minimum transfer or ongoing contribution amount)? And no other charge? How would the execution only broker make any money in that case? Unless you mean that they get some other "out of hand" commission from RL? I would expect an intermediary to add something on to the base AMC or charge a fixed fee up front in most or all cases.

Seems like it's early days for intermediaries with RL business so maybe things will become clearer as they ramp up in 2025?
 
ClubMan said:
You mean so that the only charge is RL's 0.4% on the relevant funds (and maybe subject to some minimum transfer or ongoing contribution amount)? And no other charge? How would the execution only broker make any money in that case? Unless you mean that they get some other "out of hand" commission from RL? I would expect an intermediary to add something on to the base AMC or charge a fixed fee up front in most or all cases.

Seems like it's early days for intermediaries with RL business so maybe things will become clearer as they ramp up in 2025?
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I think they mean pay a flat setup fee e.g. €500 one and done to a broker with no trailing AMC. This is the dream I guess :D :D
 
Fortune said:
Unlikely, since there's an annual cost to each PRSA type.
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With Davy, afaik, they have affinity groups/employee/partners rates. They are required to list the product in that document that @Setforlife posted a screenshot of!.

I was wondering if possibly this 0.4 percent product isn't similarly only available for folks work at or with RL.
 
messyleo said:
I think they mean pay a flat setup fee e.g. €500 one and done to a broker with no trailing AMC. This is the dream I guess :D :D
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I don't know RL intermediary/sales compensation model!

It may be that all their products include a payment to the broker.

It may be that some of them include no payment to the broker.

Personally I, like you, would generally prefer to pay a fixed fee to an execution only broker and have a lower AMC. But I be suppose it all depends on the exact numbers.
 
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