Actuaries Oversight of the Actuarial Profession

Oversight of the Actuarial Profession

One of the central recommendations 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 by the Financial Reporting Council. The FRC assumed this responsibility in April 2006 and agreed a Memorandum of Understanding in May 2006 (now updated) with the Institute of Actuaries and the Faculty of Actuaries in Scotland, which have since merged to form the Institute and Faculty of Actuaries (IFoA). There is also a communications protocol in place, detailing the way that the FRC and IFoA will fulfil the communication requirements of the Memorandum of Understanding.

In relation to oversight of the Institute and Faculty of Actuaries, the FRC achieves its aims by:

  • Monitoring the regulatory activities of the IFoA in relation to its members, including following up the IFoA's response to the FRC's earlier recommendations - through consideration of reports from the IFoA and the FRC's own independent assessments against indicators in the FRC's Actuarial Quality Framework;
  • Monitoring other developments, assessing those issues that could adversely affect public confidence in actuaries;
  • Where appropriate, undertaking more detailed research and making formal and informal recommendations to the IFoA or recommending the development of new standards.

Current projects:

The FRC undertakes an annual programme of work to discharge its oversight responsibilities. This programme is based on risk and focuses on issues that could have an adverse effect on the public interest and on public confidence in actuaries.

The FRC's main priority in relation to actuarial oversight is to:

Oversee the IFoA's regulatory work in the UK public interest - including its implementation of arrangements to monitor the quality of actuarial work.

The FRC works closely with other bodies involved in the regulation of actuaries or their work, including the IFoA, the Pensions Regulator (tPR), the Prudential Regulation Authority (PRA), the Financial Conduct Authority (FCA) and the Funeral Planning Authority (FPA).

Through these arrangements, 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 or are affected by it.

Morris Review

In March 2004, the Government asked Sir Derek Morris to undertake a wide-ranging independent review of the actuarial profession. The review focused on three aspects...

IFoA Regulation

The Institute and Faculty of Actuaries regulates its members, and the FRC oversees the IFoA by virtue of an agreement following the Morris Review in March 2005.

Actuarial Regulation

A list of the bodies we work with who regulate actuaries or their work

Actuarial Quality Framework

This aims to help Actuaries, their clients, employers, stakeholders and regulators.