The purpose of this approach is three-fold:
- to bring relevant risks to the attention of members and our wider stakeholder community
- to inform the IFoA’s regulatory strategy and the prioritisation of our regulatory work; and
- to contribute to the IFoA’s assessment and management of its own risk.
The Risk Outlook paper, published in December 2016, provides an overview of our extensive 2015/2016 engagement programme with members to analyse areas of risk to the public, as relevant to actuaries and their work.
The Regulation Board reviews, refreshes and updates that analysis routinely. Included in the various ways in which it addresses the identified risks, it may issue targeted communications, known as "Risk Alerts", from time to time, when appropriate to do so.
Issued Risk Alerts are listed below (please note that these are accurate as at the time of publication and should be read in that context):
|15 January 2021||Risk Alert: Funeral Plan Trusts||Actuaries’ involved in determining, calculating and verifying the assets and liabilities of UK pre-paid funeral plans are encouraged to be aware of transitional risks, prior to the implementation of FCA regulation, and carry out appropriate due diligence.|
|22 April 2020||Risk Alert: COVID 19||This Risk Alert aims to help bring to the attention of Members some specific issues that have been identified that they may need to consider in the immediate term as a result of the COVID - 19 outbreak.|
|13 May 2019||Members must disclose to their own client and, in some circumstances, fellow actuaries, an appropriate level of information in relation to the model they are relying on.|
|13 November 2018||
Actuaries should ensure that the advice they provide in relation to GMP equalisation (including any adjustments to benefits or transfer values) is limited to those aspects on which as actuaries they are competent to advise - specifically, this would not include advice on the legal implications.
|5 January 2018||Risk Alert: General Data Protection Regulation (GDPR)||GDPR comes into force on 25 May 2018. While many organisations may already be well prepared, it is important that all Members are aware of how the substantial changes and increased obligations under GDPR may impact on their individual role within their workplace.|
|23 November 2017||Risk Alert: Model Manipulation||There are a number of risks associated with the use of models. Members must exercise care when using models to ensure that the rationale for selection of a particular model is sound and, in applying that model, it is not inappropriately used solely to provide evidence to support predetermined or preferred outcomes.|
|12 May 2017||Risk Alert: Climate-related risks||Actuaries should ensure that they understand, and are clear in communicating, the extent to which they have taken account of climate-related risks in any relevant decisions, calculations or advice.|
|4 February 2017||Risk Alert: Change to the discount rate for settling personal injury lump sum awards||Members should be aware of the announcement by the Lord Chancellor about concluding the review of the Ogden discount rate and publishing the result. This change will affect most members working in General Insurance.|
|30 June 2016||Risk Alert: General Insurance Reserving||Risk alerts are designed to bring members' attention to topics which arise out of actuarial work which could impact on the public interest.|
|30 June 2016||Risk Alert: Commutation Factors||Risk alerts are designed to bring members' attention to topics which arise out of actuarial work which could impact on the public interest.|
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Regulation, Level 2, Exchange Crescent · 7 Conference Square · Edinburgh · EH3 8RA
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The IFoA’s Actuarial Review Team has published its first thematic review, which looked at the actuarial advice given by scheme actuaries to UK pension scheme trustees on setting transfer values and commutation rates.
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