Statement on Actuarial Standards by the Institute and Faculty of Actuaries (IFoA) and the Financial Reporting Council (FRC) confirms responsibility split between the two regulators is to continue

The statement confirms that the respective standard-setting responsibilities will continue as before; with the IFoA responsible for setting the ethical and technical regulation of its international membership, and a split in the UK with the FRC responsible for setting technical standards and the IFoA responsible for ethical standards.  Following the review there will, with agreement, be scope for more flexibility in the way in which these responsibilities are discharged. 

In appropriate circumstances, the IFoA will now be able, with the FRC's agreement, to issue UK non-mandatory technical guidance and the FRC will be able, with the IFoA's agreement, to include ethical material in its standards. The FRC and IFoA have updated their Memorandum of Understanding (MoU) to reflect these arrangements. 

Further steps have also been taken to implement the Morris Review recommendation that the FRC should have a ‘reserve ability’ to issue ethical standards in certain circumstances. This will only be used by the FRC where it reasonably considers the action to be necessary in the public interest and after the IFoA has been consulted and given a reasonable opportunity to address the issue itself. 

Actuaries today work across a breadth of sectors and roles. As regulated professionals, the IFoA requires its members to uphold rigorous technical and ethical standards. These standards are internationally recognised within the financial services industry and help the actuarial profession to stand out against other, unregulated individuals.  

The IFoA is also currently consulting on proposals to enhance the clarity of the regulatory standards that it imposes on its members internationally.

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A copy of the statement on Actuarial Standards can be found here.

For further comment please contact the media office by calling 020 7632 487 or by emailing pressoffice@actuaries.org.uk.

Editorial notes:

About the Institute and Faculty of Actuaries

The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body. 

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

Members of the IFoA 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.

Members are governed by the Institute and Faculty of Actuaries. 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 actuaries in society.

The IFoA is available to provide independent expert comment to the media on a range of actuarial- related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.