Actuarial Monitoring Scheme Update From Regulation Board
In December 2018, we published the feedback received in response to our consultation, “Proposals for an Enhanced System to Promote the Quality of Actuarial Work”, issued in June 2018.
As you may recall, the consultation set out Regulation Board’s proposals on the need for an Actuarial Monitoring Scheme (AMS) to draw evidence-based conclusions as to the quality of the work of IFoA Members and their compliance with standards, and ensure that its regulatory activities are appropriate and effective.
These proposals form an important part of a professionalism framework designed, through carefully balanced interventions and support, to provide evidence of the quality of actuarial work and to promote best practice. This will serve to safeguard the reputation of the profession, drive appropriate standards and best serve the wider public interest.
We have now completed our careful review and analysis of the consultation responses and of course the recommendations of the Kingman review. We have also had the benefit of follow-up discussions with a number of organisations who responded to the consultation, in order to obtain more insight into their concerns, and to explore possible alternatives suggested. This programme of outreach continues.
As we said in our note published in December, the consultation elicited a range of views, some supportive but others raising a number of concerns, particularly in relation to the proportionality and practicality of the Category A proposal (relating to the specific monitoring of the work of Practising Certificate holders).
Since we published the feedback from Members, Sir John Kingman’s independent review of the FRC (The Kingman Review) has also published its report of findings and recommendations. At this stage there is not yet clarity on what changes will arise as a result in terms of UK actuarial regulation.
After considering the consultation responses, reflecting further upon the proposals themselves and recognising the current uncertainty surrounding the implications of the Kingman Review, Regulation Board has concluded as follows.
- Regulation Board, like many Members and others who responded to the consultation, supports the principle of appropriate monitoring, and the important objectives the original proposals sought to address.
- We will proceed with the introduction of Thematic Reviews (‘Category B’) and Information and Data Gathering activities (‘Category C’), broadly as proposed. This will include an initial review of the scheme following the first thematic review as well as continued scheduled reviews. The outcome of these reviews will be used to continuously improve, and, if necessary, adapt the Scheme, to ensure that those forms of monitoring are working effectively.
- Further work should be done to explore possible alternative approaches to the monitoring that was proposed specifically in relation to the work of IFoA Practising Certificate Holders (‘Category A’). This work will be carried out throughout 2019 and the outputs communicated to Members.
In the coming months, Regulation Board will therefore focus on the implementation of a meaningful programme of thematic reviews, establishing a professional Actuarial Monitoring Scheme designed to improve the effectiveness of actuarial regulation in the public interest, provide meaningful, credible, independent feedback to Members and their employers and promote ongoing reinforcement and continuous improvement. This programme will allow us to consider, in time, issues of relevance to Members across the profession, wherever they are practising.
We also intend to continue our engagement with Members and organisations employing Members to obtain more insight into their concerns and explore possible alternatives not least as we respond to the post Kingman agenda. This dialogue has proven to be very helpful to our thinking and we would like to continue to engage with as many Members as possible in the coming months.
We look forward to engaging further with you on this important topic, directly and via the IFoA website, newsletters, conferences and events later this year.
I would also like to emphasise again our sincere gratitude to all who responded to the consultation and to those who took part in the meetings and events that were held throughout and following the consultation period.
Thank you very much indeed for your considered comment, suggestions and support.
Chair of Regulation Board, IFoA
In June 2018 we informed our members about our proposal to introduce monitoring of actuarial work.
Building on our history of accountable self-regulation, subject to independent oversight and designed in consultation with practitioners, the IFoA proposed a monitoring framework which aimed to deliver a targeted, risk-based mechanism by which to review compliance with actuarial standards.
This proposal sought to assess the quality of actuarial work, protect the public interest and support your profession and practice, while minimising the regulatory burden.
The consultation closed in September 2018 and your responses have been collated here.
I am pleased to introduce the feedback received in response to the Institute and Faculty of Actuaries (IFoA) consultation paper, Proposals for an Enhanced System to Promote the Quality of Actuarial Work, issued by Regulation Board in June 2018
Chair of Regulation Board, IFoA
Former IFoA President, Jane Curtis explains the key points of the proposal and why we’re looking to introduce monitoring of actuarial work.
Download the original proposal
The IFoA’s proposed model of consultation has been created with member input and guidance from the outset.
We welcome the IFoA’s proposal to test the quality of its members’ work. Evidence of good quality will engender public trust in the actuarial profession whilst reports of good working practices will support continuous improvement in the public interest. We hope actuaries and other stakeholders will respond to the IFoA’s public consultation and play their part in shaping a system that is proportionate, modern and effective.
FRC Chief Executive
Two meetings were held in London to discuss the Pensions and Insurance aspects of the proposal.
If you wish to claim CPD for watching these videos we would recommend that you view them at https://learning.actuaries.org.uk/course/view.php?id=352§ion=2, where you can claim electronically for watching them.
For members wishing to claim CPD for watching the videos on the website and reading the consultation document on the website or VLE, please claim CPD manually by logging into the My Account section of the website and select My CPD. Please ensure that you add a learning outcome to all manual claims as this will be used for verification in the event of a CPD audit.
Consultation Meeting (Insurance) - Staple Inn - 24th July 2018
Consultation Meeting (Pensions) - Staple Inn - 25th July 2018
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