The IFoA Review Team published its fourth report Funeral Plan Trusts: A thematic review report on the advice of actuaries, on Monday 28 March 2022.
This is the first report from a series of reviews looking at actuaries as experts in narrower fields. Funeral plan trust advice was chosen as the first in this series as regulations are changing and there is significant interest in the operation of the pre-paid funeral sector.
The review looked at examples of actuarial advice to pre-paid funeral plan trusts and burial societies. The report sets out key findings and recommendations and contains a high-level summary of the advice reviewed and case studies showcasing examples of good practice.
The review found that the standard of actuarial advice in this area was generally high. The advice consistently showed good compliance with the relevant standards and guidance. However, it also found that actuaries do not always explain clearly the key features of funeral plans, why they have chosen certain assumptions, or use consistent language.
The IFoA’s Regulatory Board will consider carefully the review findings and recommendations and, where necessary, make changes to its standards and guidance. The Board will also discuss the findings and recommendations with co-regulators and other stakeholders, who may be better-placed to take appropriate action.
David Gordon, IFoA Senior Review Actuary, said: “I am delighted to have launched this fourth AMS report and the first thematic review in our series ‘Actuaries as Experts’. This series of reviews looked at the work of actuaries in narrower fields of expertise. Funeral plan trust advice was chosen as the first in this series as regulations are changing and there is significant interest in the operation of the pre-paid funeral sector.
I would like to thank the actuaries from nine organisations of all sizes who agreed to participate in this review, which included scrutiny of advice and in-depth conversations with the actuaries involved. This has provided a detailed snapshot of the actuarial work being carried out in the run-up to regulation by the FCA.”
