Transcript Regulation of Actuary and CRO -  Colin Ledlie

Regulation of Actuary and CRO
Colin Ledlie
13 October 2015
11 July 2016
The Institute and Faculty of Actuaries
1848 – Institute of Actuaries
1856 – Faculty of Actuaries
2010 – The Institute and Faculty of Actuaries
We will serve the public interest by ensuring that where
there is uncertainty of future financial outcomes, actuaries
are trusted and sought after for their valued analysis and
authority.
11 July 2016
2
11 July 2016
3
11 July 2016
4
Examinations
11 July 2016
5
The Actuaries Code
• Integrity
• Competence and Care
• Impartiality
• Compliance
• Communication
11 July 2016
6
Actuarial Profession Standards
• APS QA1 – Quality Assurance Scheme for Organisations
• APS X2 – Review of Actuarial Work
• APS X3 – The Actuary as an Expert in Legal Proceedings
• APS L1 – Duties and responsibilities of Life Assurance
Actuaries
• GN5 – The Prudential Supervision outside the UK of long
term insurance business
11 Standards plus the Actuaries Code
11 July 2016
7
Financial Reporting Council
Responsible for Technical Actuarial Standards
• TAS D : Data
• TAS M : Modelling
• TAS R : Reporting Actuarial Information
• Pensions TAS
• Insurance TAS
• Transformations TAS
• Funeral Plans TAS
11 July 2016
8
Disciplinary Procedures
11 July 2016
9
Regulation of the Actuary
• Practicing Certificates introduced in 1990 for life
insurance Appointed Actuaries
• 1996 – extended to Pension Scheme Actuaries
• 1999 – extended to Syndicate Actuaries working in Lloyds
of London
• Updated to reflect Solvency II requirements in 2015 for
Chief Actuaries
11 July 2016
10
Key Points
• Strict Criteria and Process for Practicing Certificates
– Experience Requirements
– CPD Requirements
– Attestation by existing PC holder
• Annual Renewal Required
• Annual CPD Requirement
– 30 hours
– 10 of which at external events
11 July 2016
11
Personal Perspective
• Key Points
– Around 5 years as AA/CA
– Strong professional ethos and responsibility
– Regulatory oversight of the role also important
– Goes beyond corporate line management
– Whistleblowing
– Very supportive of PC for Actuaries but concerns over certain
aspects of implementation
11 July 2016
12
Regulation of the CRO
• IFoA Consulted on a compulsory practicing certificate
• … and then a Voluntary practicing certificate
• Decided NOT to introduce
– Insufficient demand
– Wide variety of backgrounds and skills of CROs
• Actuaries bound by Code and CPD requirements and
encouraged to do Cat 1 CPD (30 hrs rather than 15)
11 July 2016
13
Personal Perspective
• 6 years as Group CRO of large insurer
• Professionalism and Regulatory responsibility
• Independence of thought and voice
• Opposed to PC for CRO
– Role open to all backgrounds
– Leadership role not just (or at all) technical
– Material part of the role not typical actuarial work
11 July 2016
14
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.
11 July 2016
15