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 (PDF) 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 (PDF) setting out their responsibilities for the setting of actuarial standards and the regulation of members of the Institute and Faculty of Actuaries (IFoA).
The main priorities for Actuarial Standards for 2017/18 are to:
- Promote the new Technical Actuarial Standards (which were published in December 2016 and are effective from 1 July 2017).
- Continue to influence international standard-setting bodies and regulators and consider adoption of approved model standards.
- Continue to work with the Joint Forum on Actuarial Regulation (JFAR) in assessing areas of risk to the public interest where actuarial work is central.