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FRC seeks views on moves to reform oversight of actuarial profession

The Financial Reporting Council (FRC) has published for consultation a series of proposed changes to the Technical Actuarial Standards (TASs) framework.

Introducing the consultation, FRC executive director Melanie McLaren said: “High-quality technical actuarial work is vital in promoting trust in financial markets among the millions of UK pensioners and savers and the many investors who allocate capital.

“The proposals are designed to provide further confidence to users who rely on actuarial information. The standards are proportionate, and the simplified structure should make the standards easier to apply.”

The consultation is focused on three areas of UK actuarial practice with a “high degree of public interest”, namely pensions, insurance and funeral plan trusts.

The Institute and Faculty of Actuaries welcomed the proposals and the opportunity to comment on them.

The IFA’s general counsel, Ben Kemp, told IPE: “A principles-based approach to standard-setting is the way to go. This follows from work the IFA and the FRC have been doing with JFAR [Joint Forum on Actuarial Regulation], including our joint work on the identification of areas of public-interest risk.” 

He added: “We will continue to work with the FRC through JFAR, respond to the consultation and draw on our expert practice boards. We will also be highlighting the consultation to our members in view of their importance.”

The IFA currently regulates 28,000 members around the world.

Within the context of the UK, the FRC provides a link between that oversight and the wider public interest.

Under this arrangement, the FRC sets technical actuarial standards, which the IFA applies by agreement to its members.

The FRC also operates a high-level public interest disciplinary scheme.

These latest proposals arise out of the FRC’s technical standard-setting role.

They build on the release last year of TAS 100, a more principles-based actuarial regulation framework.

The consultation is open until 5 August.

The revised TASs are expected to come into force in the summer of 2017.

For more information about the consultation, click here

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