Press release

18 April 2008

Attendees at a Special General Meeting of the Faculty of Actuaries in Scotland at the Royal College of Physicians in Edinburgh on 16 April 2008 voted to support three of four resolutions relating to the proposed merger between the Faculty and the Institute.

Under the Faculty’s Rules⁽¹⁾, only Fellows, Honorary Fellows and Associates of the Faculty are eligible to attend and vote at a Special General Meeting – a total of 1476 people. 137 people attended the meeting.

Four resolutions were proposed. One resolution was withdrawn during the meeting by the group who requested the Special General Meeting.

Stewart Ritchie, Faculty President, said: "Many of those who spoke in support of the resolutions made it clear they were not opposed to a merger with the Institute. A number of people said they wanted more time to consider the merger proposals and discuss the options.

“We are a membership organisation and we listen to our members’ concerns. We will continue with the meetings, taking into account the views and comments expressed at the Special General meeting, to discuss the merger options. These meetings are planned to take place in Scotland, England and beyond. If possible we will add to the number of these meetings.

“I hope that many of those who attended the Special General Meeting will take a full and active part in these meetings, and I hope that other members of the Faculty and the Institute will take the opportunity to take part in the debate over the future shape of both organisations.”

Resolution 1

This meeting supports Faculty Council in exploring with the Council of the Institute of Actuaries ways in which the two bodies can further improve the effectiveness of their cooperation in the joint governance and leadership of the Actuarial Profession in the UK, and encourages Council to consider annually-renewable delegation of some functions of Council to a Joint Committee(s) or overarching body.

Carried: 61% for, 38%⁽²⁾ against, 1% abstention (rounded)

Resolution 3

This meeting directs Council to arrange detailed consultation with members on the future development of the Faculty, not merely via “informal meetings”, and which should include consideration of the whole range of options set out in the Report of the Faculty Task Force, plus any viable alternative options put forward by members.

Carried: 58% for, 42% against, 1% abstention (rounded)

Resolution 4

This meeting directs Council to cancel the proposed in-principle vote and if, and only if, the above detailed consultation leads Faculty Council to wish to introduce changes that materially alter the current joint arrangements with the Institute, this meeting directs Council to put to members such proposed changes, together with any viable alternative options that have arisen during the consultation process, for voting on a single transferable vote system to select the preferred option for taking forward.

Carried: 53% for, 47% against, no abstention

For more information please contact:

Andrew Black on 020 7632 1453

Notes:

⁽¹⁾  Correction made 28.04.08.  Changed from 'bye-laws'
⁽²⁾  Correction made 28.04.08.  Changed from '38'

Notes to Editors:

1. Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
2. Members of the Profession have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s.
3. The Profession is governed jointly by the Faculty of Actuaries in Edinburgh and the Institute of Actuaries in London. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of the Profession in society.