Following the Morris Review of the Actuarial Profession
, published in March 2005, HM Treasury
asked the Financial Reporting Council (FRC) to take on responsibility for oversight of the regulation of actuaries by the Institute and Faculty of Actuaries
(IFoA) and the independent setting of technical actuarial standards. This latter task was the remit of the Board for Actuarial Standards until 2 July 2012 when responsibility was assumed by the FRC.
The FRC seeks 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.
The FRC is responsible for:
The IFoA sets ethical and conduct standards for its members, subject to independent oversight by the FRC.
In July 2014, the FRC and the IFoA issued a statement
confirming these responsibilities. However the statement notes there should be scope, by agreement, for more flexibility in the way in which those responsibilities are discharged so that, in appropriate circumstances, the FRC can, with the IFoA’s agreement, include ethical material in its standards and the IFoA can, with the FRC’s agreement, produce technical guidance.
The FRC and the IFoA have agreed a memorandum of understanding
setting out their responsibilities for the setting of actuarial standards and the regulation of members of the Institute and Faculty of Actuaries (IFoA).
The FRC operates within the Scope and Authority of Technical Actuarial Standards
The main priorities for the actuarial team for 2016/17 are to:
- Finalise the new standards framework (which includes TAS 100 covering all actuarial work and revised Specific TASs for pensions, insurance and funeral plans) for implementation in 2017, taking account of feedback.
- Continue to work with Joint Forum on Actuarial Regulation (JFAR) on risk identification, monitoring and mitigation.
- Continue to influence international standard-setting bodies and regulators and consider adoption of approved model standards.
- Continue to oversee the regulatory activities of the IFoA and in particular:
- Oversee the IFoA’s review of its ethical code and its continuing implementation and review of its new standards for quality assurance and work review;
- Oversee the IFoA on its identification and responses to public interest actuarial risks.
- Consult publicly on the future of actuarial regulation, including whether independent oversight of the actuarial profession remains necessary and appropriate; and
- Assess, as a key indicator of our effectiveness, the realisation of the broad outcomes we promote through our standards through feedback on the new standards framework, updated evidence through JFAR that actuarial risks are being mitigated and information gained through the development of our consultation on actuarial regulation.
Actuarial quality framework
Questions for users of actuarial information
Actuarial Stakeholder Group