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News from the Financial Reporting Council, November 2010

Frequently asked questions (FAQs)
The BAS published a set of answers to FAQs on 21 October 2010 to assist practitioners in complying with BAS standards.

Publication of Pensions TAS and related matters

The BAS published its first Specific TAS – the Pensions TAS – on 21 October 2010. The Pensions TAS will apply to Reserved Work in the pensions field and other work within the scope of the TAS carried out for aggregate reports completed from 1 April 2011. The BAS also published two other related documents:

An analysis of responses to the consultation on the exposure draft which includes a version of the Pensions TAS showing changes made to the exposure draft.

A document setting out some of the significant considerations in the development of the Pensions TAS which practitioners may find helpful.

The BAS has issued an amended version of the guidance note GN9: Funding Defined Benefits – Presentation of Actuarial Advice. This version, which is effective from 1 November 2010, allows compliance with GN9 by complying with the relevant BAS standards.

Publication of Insurance TAS and related matters

The BAS published its second Specific TAS – the Insurance TAS – on 11 November 2010. The Insurance TAS will apply to Reserved Work concerning insurance business and other work within the scope of the TAS carried out for aggregate reports completed from 1 October 2011. The BAS also published two other related documents:

An analysis of responses to the consultation on the exposure draft which includes a version of the Insurance TAS showing changes made to the exposure draft.

A document setting out some of the significant considerations in the development of the Insurance TAS which practitioners may find helpful.

The BAS has issued an amended version of the guidance note GN12: General Insurance Business: actuarial reports. This version, which is effective from 1 December 2010, allows compliance with GN12 by complying with the relevant BAS standards.

The BAS is withdrawing guidance note GN33: Actuarial Reporting for Lloyd’s Syndicates writing US Business with effect from 15 December 2010. The work it concerns is outside the geographic scope of the BAS. The Actuarial Profession will be issuing an Actuarial Profession Standard which will apply to the work.

Other BAS standards

The consultation on the exposure draft of the TAS on pensions and insurance transformations closed on 27 August 2010. The consultation on the exposure draft of the TAS on funeral plans closed on 15 October 2010. The BAS is now considering the responses to these consultations and intends to publish the final TASs in the coming months.

The Generic TAS on data (TAS D) applies to data used in aggregate reports completed on or after 1 July 2010. The Generic TAS on reporting actuarial information (TAS R) applies to aggregate reports completed on or after 1 April 2010. The Generic TAS on modelling (TAS M) will apply to models used in the preparation of aggregate reports completed on or after 1 April 2011. Documents explaining the significant considerations in the development of the three Generic TASs are available on the BAS website.

TM1: Statutory Illustrations of Money Purchase Benefits

The BAS published an analysis of the responses to its consultation on TM1: Statutory Illustrations of Money Purchase Benefits on 28 October 2010.

GN48: Compliance review: Pensions

The Actuarial Profession recently sent a letter to its members setting out the way in which it considers that compliance with relevant BAS standards should be reviewed under its professional guidance note, GN48: Compliance review: Pensions. A copy of the letter can be found on the Actuarial Profession’s website.

Actuarial Quality Framework

The FRC’s Actuarial Quality Framework (AQF) is a guide to assessing the quality of actuarial work for use by actuaries, users of actuarial services, advisers and policymakers.

POB reports and recommendations

The POB issued its annual report to the Secretary of State for Business, Innovation and Skills on 27 July 2010.  Chapter Six on Oversight of the Actuarial Profession sets out the POB’s priorities during 2009/10 and Chapter Eight sets out the POB’s work programme for the coming year.  The FRC has also published an exchange of correspondence between the Chairs of the POB (Dame Barbara Mills) and the Professional Regulation Executive Committee (Sir Philip Mawer) assessing the progress and priorities of the Actuarial Profession in regulating its members.

Registration for notification of FRC publications

To receive direct notification of BAS, POB and other FRC events and publications, register at the FRC site.