Regulation Update Emma Gilpin, Head of Regulatory Policy Judith Joy, Regulatory Lawyer Association of Consulting Actuaries: Sessional Meeting 13 September 2018
Headlines from Regulation • Revised Actuaries’ Code • Quality Assurance Scheme • Review of Practising Certificate Regime • APS X3: Expert in Legal Proceedings • APS X1: Applying Standards • Mortality Assumption Methodologies in Pensions • Professional Skills • Capacity for Membership Scheme • Response to Consultations Image Source: https://www.leaprate.com/wp-content/uploads/2017/06/Regulation.jpg 2
Revised Actuaries’ Code • Published on 18 May 2018 • Feedback from consultation • Simplified language • Clarified nature of obligations • Principles and amplifications • New stand alone “Speaking Up” principle • Guidance published spring 2019 • Effective 18 May 2019 3
Revised Actuaries’ Code Integrity Competence Impartiality and Care Compliance Communication Speaking Up 4
Speaking Up “ Members should speak up if they believe, or have reasonable cause to believe, that a course of action is unethical or is unlawful ” • Challenge non-compliance with legal, regulatory and professional requirements • Report Misconduct to IFoA • Report to relevant authorities behaviour that is unethical or unlawful • Make users aware of substantial issues with pieces of work Image Source: https://secure.i.telegraph.co.uk/multimedia/archive/02737/mens-day_2737605b.jpg 5
Growing the QAS accreditation • Voluntary accreditation scheme for employers • Global QAS since April 2018 • UK, Malaysia, Singapore, Hong Kong, Indonesia, Sri Lanka 6
Growing the QAS accreditation • 38 organisations now accredited 40 35 • 3776 members work for a QAS organisation 30 25 • Represents 12% of the worldwide IFoA Membership 20 15 10 • Mainly consultancies, including some of the biggest 5 employers of IFoA Members 0 May-16 May-17 May-18 7
But… • First insurer accredited in 2018 8
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Developing the QAS accreditation • Objectives for 2018/2019 – More organisations – Increased diversity of types of organisations – More insurers Image Source: https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwi9iIbdsLDdAhVLXBoKHbI1BroQjRx6BAgBEAU&url=http%3A%2F%2 Fhsvredshorts.club%2Fplant-grow%2Fplant-grow-growing-plant-on-white-background-stock-footage-video-plant-growth-weathering- definition%2F&psig=AOvVaw3rw4uw1OEvXMcaGjwVIxGG&ust=1536666978977432 10
Pilot of Outcomes Focused CPD Scheme • Launched in July 2018 for two CPD years • Seven QAS accredited organisations participating • Investigate if viable alternative to hours based CPD NEEDS PLAN REFLECT Consider Identify Schedule Outcomes Learning Training of Activities Needs and • Report on results in 2020 Events 11
Review of Practising Certificates Regime • Changes to the Scheme - 1 September 2018 • Change in experience requirements • Refreshed Scheme • One document for applicants to read • Guidance on Scheme Actuary experience • Refreshed application forms • PDF certificate Image Source: http://www.sellmysharecertificates.com/img/cert-man-1.png 12
APS X3: The Actuary as an Expert in Legal Proceedings • Light touch review of Standard and Guidance • Requirements still relevant • References to Court Rules • Presentation and layout consistent with styles Image Source: https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcTnzB1NjbfxjDWNa4FgylYjf2EUzpbWZVhovXYXUOlrYHfSxUJr 13
APS X1: Applying Standards to Actuarial Work • Principles to be applied to determine which standards members should apply • List of relevant authorities published • Associations confirmed their standards are substantially consistent with ISAP1 Image Source: https://thumbs.dreamstime.com/b/businessman-standing-back-looking-network-drawn-concept-international-business-networking-social-connection-against-104550955.jpg 14
Mortality Assumption Methodologies in Pensions • Roundtable discussions hosted in December • Working Party set up • Identify and investigate public interest issues relating to mortality assumption setting methodologies • Consider necessity of guidance or educational material 15
Professional Skills Materials • New suite of materials launched end of September 2018 – Video case studies in Asia and Africa • Themes include: – calling out inappropriate behaviours – responsibilities of board members – speaking up – pitfalls of social media – and more… Image Source: www.istockphoto.com%2Fphotos%2Fskill&psig=AOvVaw2qcqJpV7kY3-l4xlS5ZPen&ust=1536672116634494 16
Capacity for Membership Scheme • Introduced February 2018 • Rare cases • Members within the disciplinary system, suffering from significant and current issues of health which are the root cause of the incident under scrutiny • Aims to balance public interest issues in a disciplinary context against the desire to support members suffering from significant illness – Focus is on establishing facts and identifying necessary supportive measures to ensure that members meet regulatory obligations of membership – Process is flexible, with emphasis on confidentially, sensitivity and medical expert evidence to assist Panels in assessing facts and applying appropriate outcomes 17
Consultations • Competition and Markets Authority Provisional Report on Investment Consultants and Fiduciary Management • HM Treasury Consultation on Pre-Paid Funeral Plans • Independent review of the FRC by Sir John Kingman Image Source: http://feedsleepbond.com/wp-content/uploads/2017/03/consultation.jpg 18
On the Horizon… • Review of all Standards and Guidance in light of Revised Actuaries’ Code • Data Science Focus Group • International and European Standards • Risk Alerts Image Source: https://timelesshrsolutions.files.wordpress.com/2016/12/employee-performance-review.jpg 19
Questions, queries and ways to get involved… • Always looking for volunteers for Working Parties, Committees and Boards • Any questions can be referred to the Professional Support Service via the website www.actuaries.org.uk Image Source: https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcTbeoxDvWsEPPszgRBAoEcGvb0OArxKfey1o3ejAx1hTEFdWp_V 20
Questions Comments Expressions of individual views by members of the Institute and Faculty of Actuaries and its staff are encouraged. The views expressed in this presentation are those of the presenter . 21
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