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Qualified Financial Adviser (QFA) Pensions Exam 2 Practice Test

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In the Jamie example, Brigitte has obtained a PAO over his PRSA. The PAO is served on which party?
Correct Answer:
ABC Life Co.
Explanation:
The important idea is that authority over a PRSA through a PAO must be recognised by the scheme administrator. Brigitte, as the holder of the PAO, needs the PRSA provider to acknowledge and accept that authority before she can act on Jamie’s PRSA. That’s why the PAO is served on ABC Life Co., the entity administering the PRSA. Serving the provider ensures the actions Brigitte takes are valid for the plan, and it avoids questions about who is authorised. It wouldn’t be served on Jamie or on Brigitte alone, or on both jointly; the necessary party to acknowledge and carry out the authority is the PRSA administrator.

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