Introduction

The Financial Services & Markets Act 2000, which governs all Financial Services in the UK, has a provision to allow some professional organisations to act as a ‘Designated Professional Body’ (DPB). The Institute of Actuaries is one of those organisations. This allows Actuarial firms to carry out some ‘Exempt Regulated Activities’ without being authorised by the Financial Services Authority (FSA) if they apply for a DPB licence from the Institute and meet certain conditions.

What do firms licensed by the DPB do?

In general, a DPB licensed firm can provide advice on investments and general insurance to business clients only, where the business is incidental to providing Actuarial advice. This will include advising Trustees of Pensions Schemes and Employers. Firms can only provide investment advice to individuals if they are also authorised by the FSA

An example list of the activities DPB licensed firms can undertake is given here. This is not a comprehensive list and you should seek legal advice if you are in any doubt.

A list of licensed firms is available here.

Aims of the Institute of Actuaries DPB

The DPB has overall responsibility to act for the Institute Council. It sets and amends the Handbook, issues guidance, grants licenses and deals with complaints about firms acting under a DPB licence.

• Becoming licensed by the Institute of Actuaries
• The DPB Handbook & Compliance Bulletins
• Making a complaint about a firm licensed under the DPB
• The DPB membership and terms of reference
• Professional indemnity requirements
• DPB hearings determination
• Publications library