18 June 2018
A regulatory approach that supports an open, modern, confident and trusted profession that best serves the public interest
Advance notice of a consultation on proportionate monitoring of the quality of actuarial work
Membership of the Institute and Faculty of Actuaries (IFoA) is globally recognised as a mark of quality with consequent high expectations around competence, integrity and rigorous ethical standards. With that comes an obligation to uphold and demonstrate high standards of technical competence and ethical behaviour.
Those employing or instructing actuaries can be confident an IFoA member will be a regulated professional with technical competence and integrity. Such confidence is based on the knowledge that those members are subject to a robust, effective regulatory system.
However, the IFoA’s regulatory system, unlike that of some other UK professional bodies, in particular those relating to audit and accountancy, does not currently include any monitoring of the quality of members’ work. Monitoring in its wider sense, whether relating to entities or individuals, or to the type of work which they undertake, is a feature of the regulatory frameworks applicable to a range of different sectors, including for example healthcare, teaching, surveying, and financial services.
Later this month we will launch a formal consultation on proposals to introduce monitoring to bolster, safeguard and improve our profession-led regulatory approach. We believe that this series of proposals will, if introduced, adapt and align the profession to meet the highest standards and public expectations for some time to come.
Building on our history of accountable self-regulation, subject to independent oversight and designed in consultation with practitioners, the proposed IFoA monitoring framework is designed to deliver a targeted, risk-based mechanism by which to review compliance with actuarial standards, assess the quality of actuarial work, protect the public interest and support your profession and practice, while minimising the regulatory burden. The goal of our proposed monitoring approach is to shape and enhance our regulation, with an emphasis on information gathering rather than compliance monitoring.
We will ensure that any monitoring introduced after the consultation is appropriately integrated with the existing regulatory framework, so that it operates as practically and proportionately as possible.
The consultation will last for three months and we will provide full details of our proposal and who will be affected, together with the best way to respond to the proposal. We will also be conducting a programme of face-to-face meetings and online engagement to ensure we connect with as many of our members as possible, listen to views and answer your questions.
We want to ensure that our proposals are informed by a range of views. We would be immensely grateful if you could take the time to respond to our formal consultation and attend one of the planned meetings when they are launched in the near future.
Your views will be critical in shaping how a monitoring system would be undertaken and how our already high standards can be enhanced.
Des Hudson, Chair of Regulation Board
Ben Kemp, IFoA Director and General Counsel On behalf of Regulation Board