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The Actuary The magazine of the Institute & Faculty of Actuaries

Life Board news: Changes to life guidance notes

Over the past year or so, the Financial Service Authority (FSA) has set out in various consultation papers and, most recently, in PS04/16 Integrated Prudential Sourcebook for Insurers, its proposals for the new roles of actuaries in life insurers. The proposals, which will take effect from 31 December 2004, abolish the role of the appointed actuary and create the new roles of actuarial function holder, with-profits actuary, and reviewing actuary. In order to ensure that guidance is in line with the forthcoming changes, the Life Board and its Supervision Committee has undertaken a restructuring of its guidance notes (GNs). Early drafts of the GNs were available to members in advance of CILA in April and current draft versions of the new GNs are now available on the profession’s website at www.actuaries.org.uk /link/life_insurance/guidance_changes.html

These comprise a series of high-level notes that will be applicable to the various role-holders under the new regime (eg actuarial function holder, with-profits actuary, etc), a generic GN that will cover general responsibilities of and relationships between the various role-holders, and a series of notes covering technical issues.

There is insufficient time for the new GNs to go through full due process, and the fast-track procedure is being used in this case. Although fast-track does not normally include a consultation process, given the importance of the new drafts, a short consultation period has been incorporated. Therefore, members are invited to comment on the drafts by 29 October either direct to Maria Singleton (email marias@actuaries.org.uk) or at consultation meetings to be held at 5pm–7pm on Tuesday 5 October at the Merchant Company Hall, 22 Hanover Street, Edinburgh, or at 5pm– 7pm on Tuesday 12 October at Staple Inn. If you would like to attend either of these sessions, please advise Mei Chan (email meic@actuaries.org.uk, tel 020-7632 2181) as soon as possible. Comments and discussion are also welcome via bulletin boards on the profession’s website which will be established shortly.

Following the consultation period, the GNs will be revised as necessary and final versions, to be approved under the fast-track procedure, are expected to be published at the end of November, to take effect from 31 December 2004. If you do not have access the website but would like to see copies of the draft GNs, please contact Maria Singleton (email as above, tel 020-7632 2173).

Given the very short timescale between the issue of PS04/16 and the need to expose these drafts, the board is aware that a number of issues may require further consideration. Consequently, the board would expect a higher volume of comments on these drafts than would normally be the case for GNs going through full due process. The board will make every effort to take comments into account at the end of the consultation process.