View more on these topics

Axe hangs over appointed actuaries in FSA WP review

The life office role of appoin-ted actuary could soon be scrapped as part of proposals in the FSA&#39s review into with-profits.

In the FSA&#39s fifth and final paper on with profits, it proposes appointing policyholders to life office boards and creating a with-profits fund committee.

The paper, entitled Gov-ernance of With-Profits Funds and the Future Role of the Appointed Actuary, questions the role of the appointed actuary, saying it may already be covered by the FSA&#39s business principles which life off-ice boards must abide by.

Other less radical suggestions include barring actuaries from a senior management positions, having an external review of their work or compelling them to produce an annual financial report for their boards.

The FSA says having policyholders on boards would give direct visibility to their interests but it concedes this is unlikely as the industry believes this would not be a workable solution.

It also says the fund committee would be similar to the role played by trustees in collective investment sch-emes in monitoring the use of discretion by the life office.

FSA managing director John Tiner says: “The role of the appointed actuary is an unusual one in that specific regulatory responsibilities are placed on the holder of the role rather than on the firm as a whole.”

Scottish Equitable business development manager Steven Cameron says: “With-profits life offices would not be very keen to have policyholders on their boards. The board is there to look after the interests of all groups, shareholders, policyholders and employees.”

Scottish Mutual pensions development director Leslie Gray says: “The option that the actuarial profession favours and the one that I think we will probably end up with is having a peer review of the work that appointed actuaries do.”


Sun Bank fixed buy-to-let – 4.99%

Type: Buy-to-let fixed rateFixed term: To 4 May 2004Fixed rate: 4.99 per centMaximum loan to value: 75 per centMinimum loan: £25,001Maximum loan: £500,000Rental income: Must be at least 130 per cent of monthly mortgage payment.Arrangement fee: £395 up to five properties, 1 per cent thereafterRedemption fee: Five per cent of advance in first five years.Introducer’s […]

Understanding corporate pensions

National IFA MX Financial Solutions is publishing a guide to help employers understand the issues of corporate pensions.The guide – Reviewing your Company Pension – deals with the major issues employers need to be aware of when providing a company pension scheme. It explains how company schemes operate and underlines the need for clear communication […]

Isa investors not looking long term, says Charcol

The vast majority of investors lack a long term perspective towards their Isa investment, according to research commissioned by Charcol.The researchcarried out by Market Minder, shows 72 per cent of investors were not looking at their Isa as a long term investment.Charcol marketing director Candice Hodgson says: “It is worrying to see that so few […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm