The central recommendation of the Morris Review of the Actuarial Profession (published in March 2005) was that self-regulation by the actuarial profession should be subject to independent oversight and standard setting by the Financial Reporting Council. The FRC assumed this responsibility in April 2006 and agreed a Memorandum of Understanding in May 2006 with the then UK actuarial professional bodies (which have since merged to form the Institute and Faculty of Actuaries which operates under the banner of the UK Actuarial Profession).
The FRC’s responsibilities for actuarial regulation are delivered through three of its operating bodies. Further details about these bodies and their work are set out below:
The Board for Actuarial Standards (BAS) - which has been established to set technical actuarial standards;
The Professional Oversight Board (POB) - which oversees the way in which the Actuarial Profession regulates its members acting in their professional capacity;
The Accountancy and Actuarial Discipline Board (AADB) – which operates an investigation and discipline scheme in relation to matters involving members of the Actuarial Profession which raise or appear to raise important issues affecting the public interest in the UK.
The FRC works closely with other bodies involved in the regulation of actuaries or their work, including the Actuarial Profession itself, the FSA and the Pensions Regulator.
| BAS |
POB |
AADB |
| Actuarial Profession |
| FSA |
Actuaries |
TPR |
The FRC has also established an Actuarial User Committee primarily to provide input from direct and indirect users of actuarial services to the work of the BAS and the POB.
Details of how to make a complaint about an actuary or a firm of actuaries are given on the POB website: www.frc.org.uk/pob/complaints/index.cfm
Through these arrangements, the FRC and its operating bodies seek to promote high quality actuarial practice and the integrity, competence and transparency of the actuarial profession – to the benefit of all those who rely on actuarial advice or are affected by it.
Projects/themes
Actuarial Quality Framework
Challenges for users of actuarial information arising from current market conditions 2009 update
FRC documents
To download a copy of the Memorandum of Understanding and the communication arrangements between the Actuarial Profession and the FRC, please click on the pdf links below.
Memorandum of Understanding
Communication between the Actuarial Profession and the FRC
Other useful links:
www.actuaries.org.uk The Actuarial Profession
www.actuaries.org International Actuarial Association
www.gcactuaries.org Groupe Consultatif Actuariel Europeen
www.the-actuary.org.uk The Actuary
www.abi.org.uk Association of British Insurers
www.aca.org.uk Association of Consulting Actuaries
www.cii.co.uk Chartered Insurance Institute
www.fs-cp.org.uk Financial Services Consumer Panel
www.napf.co.uk National Association of Pension Funds
www.pensions-pmi.org.uk Pensions Management Institute
www.spc.uk.com Society of Pension Consultants
http://www.hmtreasury.gov.uk/morris_review_actuarial_profession.htm HM Treasury - Morris Review
