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The Actuary The magazine of the Institute & Faculty of Actuaries

Professional Affairs Board update

Professional Guidance Committee – case study reports

A member has questioned whether Case Study 4, published in the May issue of The Actuary, does breach the requirements of paragraph 6.1 of the PCS relating to disclosure of commission. As presented it referred to a situation where a member was advising his/her firm on the transfer of client funds between investment accounts so that the firm’s clients got the benefit of the best available rate of return, while the firm itself received commission from the organisation in which the funds were invested.

The committee agrees that this does not represent a breach of the PCS in that, as the member has no direct relationship with the firm’s client, he or she cannot ‘ensure’ that disclosure is made.

However, if the member as an individual received commission, then the committee is clear that even though the member is not giving advice to the clients, he or she must ensure that receipt of such commission is disclosed to the clients.

MAP updates

Manual of Actuarial Practice (MAP) Update 43

Map Update 43 was issued to members in May 2004. The letter from the editor can be found at www.actuaries.org.uk /files/pdf/map/S43_cov_let.pdf. It included GN19 v4.4, which took effect on 10 May 2004. It can be found at www.actuaries.org.uk/files/pdf/map/Contents.pdf.

E-alerts and guidance covering letters

As noted in last month’s issue, members have the option of receiving an email to notify them that a board has issued a covering letter to accompany new or amended guidance. You also have the option of receiving emails to notify you that there has been a MAP Update issued. Should you wish to receive such e-notifications, then please amend your despatch preferences in the members-only part of the website. If you have any questions about any of the above, please contact Sarah Gander, MAP editor, at Maclaurin House, email sarahg@actuaries.org.uk, tel 0131-240 1320.