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Kingman review

The Kingman Review is an independent review of the Financial Reporting Council (FRC), the regulator for auditors, accountants and actuaries. The review will be led by Sir John Kingman, who has extensive private and public sector experience. Find out more about how the IFoA is responding to the review

Independent Review of the Financial Reporting Council

The Independent Review of the Financial Reporting Council issued a Call for Evidence in June 2018. On 6 August, the IFoA submitted its response to the consultation.

You can read our response.

 

FAQs

What is the Independent Review of the Financial Reporting Council and why is it taking place?

In April 2018, the Government announced its intention to conduct an independent review of the FRC. This followed a number of high profile corporate collapses, notably Carillion, which subsequently led to a joint inquiry by the Work and Pensions and the Business, Energy and Industrial Strategy Select Committees

The Government is therefore undertaking this review to assess the effectiveness of the FRC’s governance, impact and powers, to ensure it is fit for the future.

Find the Review’s Terms of Reference here

 

Who is Sir John Kingman?

Sir John Kingman was appointed by the Secretary of State for Business, Energy and Industrial Strategy to lead the Review. As a consequence, it is sometimes referred to as the Kingman Review.

Sir John is a former senior civil servant who was Second Permanent Secretary to HM Treasury until 2016. He is currently the Chairman of Legal & General.

He is supported by a small secretariat team and an Advisory Group.

 

What is the Financial Reporting Council (FRC)?

The FRC is a UK Non Departmental Public Body that has regulatory roles in relation to auditors, accountants and actuaries in the UK, and is responsible for the UK’s corporate governance code.

Since 2005, the FRC has had specific responsibilities in relation to the regulation of actuaries carrying out work within UK geographic scope (more details below).

 

Why is the Review important to the IFoA?

Whilst the call for evidence predominantly focuses on how the FRC regulates audit and accountancy, the Review also asks whether the existing arrangement for the regulation of actuaries in the UK (put in place following a review in 2005 (the Morris Review)) is still fit for purpose.  

 

What are the current regulatory arrangements for IFoA members?

Since the 2005 Morris Review, the FRC has, by agreement with the IFoA set out in a Memorandum of Understanding, been responsible for three functions relating to the regulation of actuaries in the UK:

  • Independent oversight of IFoA regulation in the UK (including the IFoA qualifications system);
  • Setting of Technical Actuarial Standards (TASs) in relation to UK actuarial work (the IFoA is responsible for all ethical/conduct standards, including the Actuaries’ Code); and
  • Disciplinary enforcement in relation to cases involving IFoA members that potentially give rise to “important issues affecting the public interest in the UK” (the IFoA deals with other disciplinary cases through its Disciplinary Scheme).

The IFoA is responsible for all other aspects of the regulation of its members, including all non-UK work/members, CPD requirements and Practising Certificates, as well as the regulation of the different qualification standards and admissions. The IFoA also retains responsibility for enforcing the TASs in relation to members carrying out UK work.

 

What changes would we like to see as a result of the Review?

The IFoA believes that the model of professional self-regulation subject to effective independent oversight remains the most appropriate arrangement for the regulation of actuaries in the UK.

However, our response highlights some specific aspects of the arrangements where there may be an opportunity to make changes to improve effectiveness as well as to reflect developments in the actuarial profession since the time of the Morris review.

In particular, the IFoA considers that the current arrangements could be sensibly improved by:

  1. clearer distinction between regulatory/qualification (IFoA) and independent oversight (FRC) roles; and
  2. simplified arrangements in relation to the setting of professional standards.

One area where we see no need for change is a suggestion in the consultation for the FRC to receive statutory powers in relation to actuarial regulation.

We believe that there no evidence to suggest that the current arrangements are not serving to protect the public interest and the introduction of a system of statutory regulation, where there is not an identifiable need to do so, seems disproportionate.

 

How was the IFoA’s response developed?

The IFoA established a Steering Group comprised of senior volunteers and the IFoA Executive. The Group worked together throughout the consultation period to inform our response, which was then reviewed and signed off by the Regulation Board, the Policy and Public Affairs Board (PPAB) and Council.

 

Which other professions are affected by the Review?

The Financial Reporting Council also oversees the professional bodies for accountants and auditors in the UK and has particular regulatory roles in relation to audit and accountancy, therefore those professions are also in scope of the Review.

 

What happens next?

The call for evidence closed on 6 August 2018. The Review Secretariat will now consider the evidence it receives and will produce a final report for Government on its findings towards the end of 2018. The Government will then consider the report and will consult on any necessary recommendations or changes in 2019.

In the interim, members of the IFoA Steering Group will continue to engage with the FRC Secretariat Team.

For more information regarding the Review, please visit the review website

For more information regarding the IFoA’s response, please contact the IFoA Regulation team

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Events calendar

  • IFoA & PRI Webinar: TCFD – leaders and challenges

    Online webinar
    2 September 2019

    Spaces available

    In collaboration with the Institute and Faculty of Actuaries, the Principles of Responsible Investment is delighted to host this webinar discussing the response to the TCFD’s recommendations two years on from their publication. The webinar will feature new analysis of the 591 investors representing $45 trillion who responded to PRI’s 2019 climate indicators, insights from the past Chair of the IFoA’s Resource and Environment Board as well as an investor case study of implementation in practice from Aviva. 

  • SIAS Event: Climate Zero to Climate Hero

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    3 September 2019

    Spaces available

    An introductory session to help you get ahead with climate change.

    • Science, terminology and initiatives: handy facts to keep in your back pocket 
    • Getting your point across: how to influence people and avoid common traps and pitfalls
    • Taking action: what are actuaries expected to do...and what are we actually doing?
  • KSS event – The Regulatory Perspective

    Deloitte Saltire Court 20 Castle Terrace Edinburgh EH1 2EG
    5 September 2019

    Spaces available

    This KSS talk, presented by the FCA Head of Department in Scotland, will focus on the following 3 main areas:

    • FCA business plan priorities
    • The future of regulation
    • FCA Engagement in Scotland
  • Professional Skills Training session (Jointly held with China Life)

    China Life Insurance, Beijing •  China Life Shanghai Office • China Life Shenzhen Office  
    6 September 2019

    Spaces available

    Friday, 6 September, Beijing Local Time (CST) 14.00-16.30; British Summer Time (BST) 07.00-9.30

    The IFoA Beijing Office and China Life are pleased to be co-hosting a Professional Skills Training (PST) session in Beijing, Shanghai and Shenzhen on Friday, 6 September. Wen Li (FIA), the IFoA Lead Representative in China and East Asia, will lead the PST presentation and discussion on ‘Getting it right!’.

    The main venue will be in Beijing. Members in Shanghai and Shenzhen can join the interaction with Beijing via video conference at China Life’s regional venues. (see full details below)

  • GIRO Conference 2019

    EICC, The Exchange, 150 Morrison St, Edinburgh EH3 8EE
    24-26 September 2019
    Spaces available

    GIRO is attended annually by over 800 delegates and speakers who are keen to discuss key topics such as Pricing, Reserving, Modelling and the future of the insurance industry. GIRO 2018 was a huge success and we have opened bookings early for what we hope will be another brilliant conference at the EICC in Edinburgh this year. 

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  • Chief Actuaries and Senior Life Actuaries Workshop 2019

    Staple Inn Hall High Holborn London WC1V 7QJ
    2 October 2019

    Spaces available

    This workshop, now in its sixth year, is aimed at senior actuaries working in life insurance - predominantly Chief Actuaries, but also Reviewing Actuaries and others working in risk and financial reporting. It will provide seven hours of relevant CPD.

  • The Future of the Actuarial Profession

    Staple Inn Hall, High Holborn London WC1V 7QJ
    3 October 2019

    Fully booked.

     

    Three actuaries – and CEOs – discuss their views on how the business world is changing and what that might mean for actuaries in the future.

  • Spaces available

    Have you ever thought about working in wider fields? Would you like to play a role in the fight against climate change to make the planet better? 

    It can be difficult to do this - but seeing an example you can follow can make it more realistic. In this ‘green’ case study a template is outlined to show how actuaries can apply their skills more broadly - and in doing so, to make a difference.

  • RSS/IFoA Data Science Ethics: the role of practitioners

    Royal Statistical Society, 12 Errol St, London EC1Y 8LX
    7 October 2019

    Spaces available

    The Institute and Faculty of Actuaries and the Royal Statistical Society have worked together to develop joint ethics guidance on data science. This is the culmination of an 18 month programme of practitioner led work. 
     
    Join us for the launch of this new guidance, with a high-level panel discussion which will explore the role of data science practitioners and professional bodies in data ethics. 

  • Sessional Meeting - Autonomous Vehicles and impacts on the wider insurance industry

    Staple Inn, High Holborn, London WC1V 7QJ         
    28 October 2019

    Spaces available

    The Institute and Faculty of Actuaries is running a sessional meeting on autonomous vehicles on 28th October.  The session will showcase the work of the IFoA “Autonomous Vehicles” working party alongside a number of expert external presenters. 

  • ARC Event: Beyond Proportional Hazards

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    30 October 2019

    Spaces available

    ARC Event: Beyond Proportional Hazards: Statistical methods for assessment of the impact of medical advances and health interventions on longevity and population projections.

    This workshop is being delivered by the Actuarial Research Centre’s (ARC) ‘Big Health and Actuarial Data’ Research Programme.

  • Hot Topics in Health and Care: Networking and Drinks

    Staple Inn, 4 High Holborn, London WC1V 6DR
    4 November 2019

    Spaces available

    This evening will feature two new cases studies that highlight the implications for insurers of issues impacting on health and mortality for life, pensions, and health and care products; Impactability modelling: a worked example in Type II diabetes presented by Josephine Robertson, and Seasonal Mortality in England and Wales 1993-2016 presented by Mary Hall, Dublin City University.

  • Autumn Pension Seminar

    Grand Connaught Rooms, 61-65 Great Queen St, Holborn, London WC2B 5DA
    13 November 2019

    Spaces available

    Join us for this brand new seminar that brings together our Current Issues in Pensions, Pensions and the Law, and Investment for Pension Actuaries events. The seminar builds on the IFoA’s Annual Pension Conference with sessions covering CDC, TPR’s code of practice, investments, legal updates and Professional Skills Training with a focus on interactive discussion throughout.

    • KSS event: How is Scotland’s population changing and what are the implications?

      Barnett Waddingham, 163 West George Street, Glasgow, G2 2JJ
      14 November 2019

      Spaces available

      The National Records of Scotland (NRS) collects, preserves and produces information about Scotland's people and history to inform current and future generations - work that underpins the fabric of Scottish society and tells the story of our nation. This KSS talk will explore the following and other areas impacting Scotland’s changing population, and assess the potential implications of the changes:

      • population statistics
      • life expectancy
      • changes in age structure
      • birth and death rates, including causes of death statistics.
    • Life Conference 2019

      The Convention Centre Dublin, Spencer Dock, North Wall Quay, Dublin 1
      20-22 November 2019
      Spaces available

      The Life Conference is the premier event for professionals interested in life insurance.  Offering a wide range of workshops and plenary sessions it’s the perfect opportunity to discover what’s hot and current in life insurance ensuring you get up to date on the latest thinking and innovation whilst meeting and exchanging ideas with a broad range of professionals.

    • Autumn Lecture 2019, London - Rt Hon Nicky Morgan MP

      Lincoln's Inn The Treasury Office, London WC2A 3TL
      2 December 2019

      Fully booked.

      The IFoA is pleased to announce that this year’s Autumn Lecture will feature the Rt Hon Nicky Morgan MP as its guest speaker.  Nicky has previously served as Financial Secretary to the Treasury and Minister for Women. She now chairs the Treasury Select Committee whose remit is to examine the expenditure, administration and policy of HM Treasury, along with all of its agencies and associated bodies.

    • Autumn Lecture 2019: Live Streaming

      Webinar 
      2 December 2019

      Spaces available

      Watch the live stream of this year's Autumn Lecture with guest speaker Rt Hon Nicky Morgan MP. 

    • Behavioural Finance Research Launch- 14 January 2020

      Staple Inn, 4 High Holborn, Holborn, London WC1V 6DR
      14 January 2020

      Spaces available

      We are delighted to announce the launch of the findings from our ARC funded Behavioural Finance research with a special evening event at Staple Inn on Tuesday14th January 2020. Entitled Behavioural Aspects of Institutional Investment Decision-Making, this research programme is being delivered by City, University of London, Leeds University Business School and Ipsos.