The Irish Pensions Authority has launched a consultation on proposed changes to the investment rules for personal retirement savings accounts (PRSAs), as assets in the market continue to grow rapidly.

According to the authority, PRSA assets doubled between 2021 and mid-2025, reaching €20bn, with non-standard PRSAs now accounting for 66 per cent of total assets.

Demand for these products has increased significantly since the transposition of the IORP II Directive, with the number of new non-standard PRSA contracts rising almost fivefold.

In light of this growth, the authority said it was “timely” to review existing rules, highlighting concerns about the disparity between PRSA investment rules and those applied to occupational pension schemes.

It argued that the safeguards introduced under IORP II should also extend to PRSA contributors.

“The authority’s view is that PRSA providers should be required to ensure assets are invested predominantly in regulated markets and in a manner that ensures
diversification,” the consultation stated.

This view was echoed by Irish pensions regulator, Brendan Kennedy, who said last week that there was "considerable work" to be done to ensure that pension members reap the benefits of the IORP II requirements.

Furthermore, the paper noted that many one-member arrangements (OMAs) currently benefiting from a derogation under IORP II are expected to transfer to PRSAs before April 2026, making the review particularly important.

The authority outlined four key questions for consultation, covering the application of diversification requirements, the potential extension of Section 59AB provisions of the Pensions Act to PRSAs, the timing of any new rules, and proposals to require more detailed data returns from providers on how their assets are invested.

Responses will be reviewed before proposals are developed for submission to the Department of Social Protection and the Minister’s consideration.

The consultation closes at 5pm on 17 November 2025, with submissions to be uploaded via the Pensions Authority’s website.

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