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Monitoring consultation (closed Friday 28 September)

Your responses to our consultation on an enhanced system to promote the quality of actuarial work.

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. 

Desmond Hudson
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

Des Hudson

Chair of the IFoA Regulation Board

 

Proposal overview

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. 
 

Download the full proposal
 

 

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.

Stephen Haddrill

FRC Chief Executive

Consultation Meetings

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&section=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

Explore the proposal

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Events calendar

  • LMS Invited Lectures 2019

    ICMS, The Bayes Centre, 47 Potterrow, Edinburgh EH8 9BT
    20 May 2019 - 24 May 2019

    Spaces available

    On May 20-24 2019, Prof Søren Asmussen (Aarhus University) will deliver a course on lectures on advanced topics in life insurance mathematics.  This will be held at the International Centre for Mathematical Sciences, Edinburgh, and will be accompanied by supporting lectures from Prof Corina Constantinescu (University of Liverpool) and Prof Andrew Cairns (Heriot-Watt University). To register, please visit https://www.icms.org.uk/LMSAsmussen.php.

  • KSS events – GMP Equalisation - where are we now? Edinburgh

    KPMG  Saltire Court 20 Castle Terrace Edinburgh EH1 2EG
    23 May 2019

    Fully booked.

    This talk will discuss the various methods available for equalising GMP, key considerations and actions for both Trustees and Companies, and a discussion of some of the associated legal issues. This event is now full, however, to join a waiting list please email Sarah.Dawes@KPMG.co.uk

  • SIAS Event: Navigating Organisational Politics Positively

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

    Spaces available

    The term 'office politics' usually has a lot of negative connotations and indeed an inability to be able to navigate an organisation's formal processes and interact effectively with others at work can have far reaching adverse consequences.

  • Spaces available

    Public scrutiny of what investment funds deliver for consumers continues to be high profile, with the FCA’s Asset Management Market Study requiring fund managers to make (and publish) an annual assessment of value for authorised funds from the end of 2019.

  • Reimagining ageing

    Staple Inn Hall, High Holborn London WC1V 7Q
    14 June 2019

    Spaces available

    Reimagining ageing, hosted by the Institute and Faculty of Actuaries, in partnership with the ILC

  • Spaces available

    Increasing global concern over the impact of climate change has recently led to public scrutiny over the adequacy of existing risk management practices by insurance firms and pension schemes in dealing with these challenges, that potentially impact both individual actuaries and the IFOA generally.

  • Pensions Conference 2019

    Bristol Marriott Hotel City Centre, 2 Lower Castle Street, Old Market, Bristol, BS1 3AD
    18-19 June 2019
    Spaces available

    Covering current topics and industry trends, the conference also includes a pre-conference evening dinner (18 June) giving you the opportunity to develop your network. 

  • KSS event – FinTech and The Actuarial Profession

    EY, Atria One, 144 Morrison Street, Edinburgh
    19 June 2019

    Spaces available

    This KSS talk from FinTech Scotland's CEO will explore the mission to create an integrated Fintech ecosystem through provision of funding, support, infrastructure and talent that recognises and responds to the needs of all stakeholders - and the overarching aim for Scotland to be one of the top 5 Fintech global leaders by 2020.

    To book your place, please email Barry_Shannon@standardlife.com 

  • Current Issues in General Insurance (CIGI) 2019

    Inmarsat, 99 City Road, London, EC1Y 1BJ
    19 June 2019

    Spaces available

    CIGI is a well-established one-day seminar designed to increase awareness and encourage discussion on a variety of topical issues across the general insurance industry. 

    There will be an excellent and diverse line-up of speakers to provide a variety of perspectives and challenge covering technical and professional areas. 

  • Cass Event – New Thinking about Deferred Annuities

    Cass Business School, Executive Education Facilities 200 Aldersgate St, London EC1A 4HD
    21 June 2019

    Spaces available

    Our motivation for discussing this important subject comes from some exciting recent research which has analysed the impact of behavioural factors on the decision to purchase an annuity. This work has shown that behavioural factors can explain the well-known low demand for immediate annuities but this research also identifies an important opportunity in relation to deferred annuities (DA). The research suggests that these factors lead to positive incentives to purchase a DA and that, for longer deferred periods, a DA could be an attractive product for both consumers and insurers.

  • AGM and Presidential Address 2019 + Volunteer and Member Drinks Reception

    The Hub  Castlehill Edinburgh EH1 2NE
    26 June 2019

    Spaces available

    Notice is hereby given that the ANNUAL GENERAL MEETING of the INSTITUTE AND FACULTY OF ACTUARIES will be held at The Hub, Edinburgh on Wednesday 26 June 2019 at 16.30 (Preceded by tea from 16.00) and followed by a PRESIDENTIAL ADDRESS given by John Taylor.

  • IFAM event - Actuarial Teachers’ & Researchers’ Conference 2019

    Institute for Financial and Actuarial Mathematics Department of Mathematical  Sciences The University of Liverpool Mathematical Sciences Building Peach Street Liverpool, L69 7ZL
    27 June 2019 - 29 June 2019

    Spaces available

    The Institute for Financial and Actuarial Mathematics (IFAM) at the University of Liverpool is pleased to host the 2019 Actuarial Teachers’ and Researchers’ Conference from 27-28 June 2019. This annual two-day event has been running annually now for many years, each time hosted by a different university, and provides all those interested in actuarial research and education a great opportunity to share their ideas and catch up on the latest developments.

  • SIAS: The Impact of Air Pollution on Health and Life Expectancy

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    2 July 2019

    Spaces available

    Air pollution has gained increasing attention lately. Nicola Oliver, head of longevity and mortality research for Medical Intelligence, will discuss not only the impacts of air pollution on health and life expectancy but also how as an industry we should be addressing it.

  • 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.