IFoA Council votes for governance changes

15 June 2023

The Institute and Faculty of Actuaries (IFoA) Council has approved a series of measures to strengthen and modernise its governance. The changes reflect leading governance practice and support the IFoA’s ambition to be a globally leading professional body, promoting accountability and diversity. The improvements are expected to go live in the first half of 2024 and are designed to serve and support members, both now and for future generations.

The existing Management Board will be reconstituted as a new Unitary Board, with an independent Chair, a role which the IFoA will advertise in due course. The Unitary Board will be composed of 9 members in total: 4 independent non-executive directors (including the Chair), 4 IFoA member non-executive directors (one of whom will be the President), and the CEO. All existing Council and Management Board sub-committees will report to the Unitary Board.

Council will remain the IFoA’s ultimate decision making body and will retain appropriate reserved powers, but will delegate to the Unitary Board its oversight, strategy, planning & reporting responsibilities. Council’s future role will focus on the IFoA’s membership and the broader actuarial profession, acting as an advocate for all IFoA members, amplifying the voice of members in all areas, optimising the membership experience, and developing a long-term vision for the actuarial profession.

In addition, the term served by the President has been changed from the current one year to a two-year term; the first President elected with this term is expected to serve from June 2025-2027.

In the initial phase of setting up the Unitary Board, non-executive members will be appointed through a skills and competency based selection process by an independently chaired appointment panel. Once this is complete, a Nominations Committee will be established to oversee further appointments and will be responsible for filling all non-executive vacancies other than the President, who will be an ex-officio member of the Board elected by Council. Council has reserved the right, in exceptional circumstances, to remove either the Unitary Board Chair or the entire Board.

Matt Saker, IFoA President, said:

“This year, the IFoA celebrates its 175th anniversary. We are proud of our heritage and, as with any organisation with a long history, we have continually adapted over the years to ensure we are effectively supporting and promoting the profession. Our ambition to be a leading global professional body means we must continue to provide a governance structure that is modern and fit-for-purpose.

“I would like to thank the Governance Review’s Steering Committee for leading the extensive consultation process which sits behind these governance changes. Council has signalled clear support for the changes, decisively voting to commit to the new structure and processes. We can now move into the implementation stage with clear principles on the initial set-up and robust rules for the long-term success of this process.”

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