31 May 2022
Commenting on the Government’s response to its consultation on ‘Restoring trust in audit and corporate governance’, Matt Saker, President-elect at the Institute and Faculty of Actuaries (IFoA), said:
“We welcome the decision to have the newly established Audit, Reporting and Governance Authority (ARGA) oversee and regulate the actuarial profession, focused primarily on individuals, by reference to a clearly defined list of public interest actuarial activities. The Government has listened to our concerns and agreed it would be contrary to the public interest to deter membership of the IFoA, or the employment of IFoA members in both traditional and emerging areas of actuarial work, by regulating only the work of our members. It is also helpful the Government has confirmed the current division of responsibilities between ARGA and the IFoA will be retained, albeit on a statutory footing.
“While welcoming the consultation response, we do have questions and concerns about the detail of the Government’s proposals, which may still lead to unintended consequences, including regulatory arbitrage, contrary to the public interest. It will be critical to define the scope of ARGA regulation clearly and carefully, focused on public interest activities, and how this regulation will be monitored and enforced, consistently and proportionately.
“There remains the real risk otherwise that some rules may still apply to members of the IFoA but not to non-members, who are undertaking the same work. We believe this could undermine the profession, lead to a lowering of standards and result in regulation spanning an ill-defined range of activities which would be difficult to monitor and enforce effectively.
“Actuaries are essential to a well-functioning financial system. The work they do on a daily basis in the public interest ensures that people receive the pensions they are entitled to, that insurance products are priced accurately for customers and that companies hold sufficient capital to pay claims to their customers.
“We look forward to continued engagement with Government on the development and implementation of its proposals, in addition to other stakeholders, to ensure their success in protecting the public interest effectively and proportionately.”
~ENDS~
Contact
Sonia Sequeira, Media Relations Manager, IFoA
Tel: 07525 592 198
Email: sonia.sequeira@actuaries.org.uk
About the Institute and Faculty of Actuaries
The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body.
Research undertaken by the IFoA is not commercial. As a learned society, research helps us to fulfil our royal charter requirements to further actuarial science and serve the public interest.
Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
Members of the IFoA have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s of London.
Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.
The IFoA is available to provide independent expert comment to the media on a range of actuarial-related issues, including Covid-19 and its long term consequences, mortality, pensions, life and general insurance, health and care, finance and investment, climate change and sustainability, systems thinking, uncertainty and judgement, and risk management.
For all media queries please contact Sonia Sequeira, Media Relations Manager