Changes to the reading for subjects ST6 and ST9

ST6 textbook change

A new version (the 8th edition) of the John Hull textbook Options, futures and other derivatives was recently published. For the 2012 exams, students may use either the 7th edition or 8th edition for their study. The Core Reading gives references to both versions and the examination will not assume knowledge of detail that is included in one edition but not the other.

For the October 2011 exams, the Core Reading is based on the 7th edition, as this is the version that was available as at the publication date (May 2010). However, it is acknowledged that some students studying for the October 2011 exam may instead have the 8th edition. We have produced a note setting out the changes to the Core Reading references that are necessary for these students.

Changes to the ST9 required reading

For the 2012 exams, changes are being made to the textbooks that form part of the required reading for subject ST9. In particular, the McNeil et al and Chapman books will no longer be part of the Core Reading. Instead, a new book is being included: Financial enterprise risk management, by Paul Sweeting (Cambridge University Press).

As the publication date for this new book is September 2011, students who wish to start studying for the 2012 exams before then are advised to start with the IAA Practice Note and the Lam textbook, both of which remain part of the required reading. (The Standard & Poor's paper is also still part of the Core Reading, but the Society of Actuaries paper an economic capital is not).

This change has largely been implemented as a result of feedback from students about the current course. It aims to improve the quality of the underlying material without making significant changes to the overall objectives and principles covered.

For students studying for the September 2011 exams, there has been no change to the required reading material.

The textbooks by Sweeting and Lam may be purchased from the Publications eShop at the links below:

• Financial enterprise risk management by Paul Sweeting
• Enterprise risk management from incentives to controls by James Lam