How to do a professional job
How to do a professional job
Being a professional means...
Taking responsibility for decisions
Acting with integrity and detachment from personal circumstances
Developing a direct and trusting relationship with the client
Recognising that others have valid views
Achieving, demonstrating, maintaining and improving competence in the skills necessary to provide actuarial advice
Being reliable, i.e. delivering a product that meets the clients requirements, in terms of detail, quality and timeliness.
GAD- Government Actuary's Department. Concerned with:
the State pension and national insurance schemes
occupational pension schemes
pensions policy and regulation
protection for public sector employees' pension arrangements on the compulsory transfer of employment to a private sector employer, or to another public sector body
the regulation and supervision of insurance companies
Matters are material if they could, individually or collectively, influence the decisions to be taken by users of the related actuarial information.
Assessing materiality is a matter of reasonable judgement, which requires consideration of the users and the context in which the work is performed and reported.
Principle in TAS can be ignored if it is felt that its inclusion would not have a material effect.
not requiring work to be performed which is not proportional to the scope of the decision or assignment to which it relates and the benefit that users would be expected to obtain from the work.
Responsibility of FRC, which is independent of the IFoA.
Aim of TASs to ensure that users of actuarial information can have confidence in the "information's relevance, transparency of assumptions, completeness and comprehensibility.
Apply to work in relation to the UK operations of entities and any non-UK operations that report in the UK. For the Generic TASs wider adoption is encourages by the FRC.
From the 1st July 2017 the three generic TASs were replaced with TAS 100 and the
specific TASs were renamed as
TAS 200 (Insurance);
TAS 300 (Pensions); and
TAS 400 (Funeral Plans).
Jobs that actuaries do
Actuaries assess, quantify, manage and monitor risks
Actuaries advise on reinsurance and other risk transfer mechanisms
Actuaries build and test models that project and discount cashflows. They handle data, and use economic and demographic analyses to estimate assumptions and decide on margins
Actuaries manage future liabilities. They advise on contribution rates, premium rates and on investment strategy.
Actuaries monitor experience. They compare actual with expected experience, analyse any variation and manage it.
Knowing your client
Obtaining sufficient background information on the client to put the task into context.
Knowing for whom in the client firm the work is being performed
Knowing if there are any conflicts within the client firm and whether the actuary is advising for one side only
Knowing what complaints procedures are in place
Conflicts of interests
decline one of the jobs
disclose the conflict to the parties concerned
establish Chinese walls to separate staff and electronic data.
An actuary with statutory responsibilities may be required to notify the regulator of any conflicts
The Actuaries' Code
IFoA Standards- developed since the introduction of the current professionalism framework in 2006.
Ethical and best practice standards that are the responsibility of the IFoA. Apply to all members, regardless of the territory or area of work in which they operate.
Statutory roles reserved only for actuaries
required to certify that:
for the valuation of liabilities, proper records have been kept and proper provision for the liabilities has been made.
the liabilities have been valued in context of the assets, and both liabilities and assets have been valued in accordance with legislation.
a correct statement of surplus has been produced.
in his/her view, premiums or contributions are adequate, given reasonable assumptions and the level of the free assets, to meet the future liabilities.
professional guidance has been complied with.
The Actuarial Quality Framework
promote the following drivers of actuarial quality
reliability and usefulness of actuarial methods
of actuarial information and advice
technical skills, ethics and professionalism
working environment and other factors outside the control of actuaries.