AADB investigating actuaries in relation to Equity Syndicate Management Limited
05 March 2012
AADB PN 45
The Accountancy and Actuarial Discipline Board (AADB) has launched an investigation under its Actuarial Scheme into the conduct of members of the Institute and Faculty of Actuaries in connection with actuarial advice provided to Equity Syndicate Management Limited which is managing agent and a corporate member of Lloyds Syndicate 218, trading as Equity Red Star.
The scope of the investigation covers:
“The provision of actuarial advice to Equity Syndicate Management Limited (“ESML”) by Members in relation to ESML’s reserving for Lloyds Syndicate 218 between 2007 and 2009.”
The AADB’s decision to initiate an investigation was taken following consultation with the Institute and Faculty of Actuaries.
The AADB is independent of the professions it disciplines and operates in the public interest.
Notes to Editors
The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
The Accountancy and Actuarial Discipline Board ("AADB") is the independent, investigative and disciplinary body for accountants and actuaries in the UK. The AADB is responsible for operating and administering independent disciplinary schemes for these professions. The Accountancy Scheme covers Members of the following accountants' professional bodies:- the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, the Institute of Chartered Accountants in Ireland, the Institute of Chartered Accountants of Scotland and the Institute of Chartered Accountants in England and Wales. The Actuarial Scheme covers Members of the Institute and Faculty of Actuaries (formerly the Institute of Actuaries) and the Faculty of Actuaries (prior to its merger with the Institute of Faculty of Actuaries).
The focus of the AADB is on cases which raise important issues affecting the public interest; other disciplinary cases will continue to be dealt with by the relevant professional body. The purpose of an investigation is to determine whether there is evidence of misconduct on the part of Members or Member Firms of the professional bodies. An investigation does not always mean that an allegation has been made or that there is evidence of misconduct on the part of the Member or Member Firm involved.
Disciplinary complaints filed following an AADB investigation are heard by an independent Tribunal which will normally sit in public. If the Tribunal upholds a complaint, there is a wide range of sanctions which it can impose including an unlimited fine, exclusion from membership of a professional body covered by one of the Schemes and withdrawal of practising certificates or licenses.
Document created under a former FRC operating body.