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JFAR issues public interest discussion paper

The Joint Forum on Actuarial Regulation (JFAR) is seeking views on its identification of risks to the public interest.

28 OCTOBER 2014 | BY JUDITH UGWUMADU

A discussion paper, launched on behalf of the JFAR by the Financial Reporting Council, sets out the risks and how actuarial work is relevant to their mitigation.

Stephen Haddrill, FRC chief executive and JFAR chair, said: ‘Actuarial work is vital in promoting trust in financial markets among the millions of UK pensioners and savers and the many investors and investor groups who allocate capital.

‘We want to build justifiable confidence in that work. This paper is very much a “think-piece” - a vehicle for seeking wider input at this preliminary stage on the JFAR’s analysis.’

JFAR is seeking views that would help it improve its analysis of risk to the public interest, to raise awareness of the risks and so help mitigate them and to inform stakeholders about regulations.

‘Actuarial involvement is central to some of the risks. In some areas actuarial work supports decisions that have the potential to create a risk to the public interest – for example in the design and distribution of insurance products,’ the paper stated.

‘Some of the risks we consider are very broad – for example environmental concerns – and actuarial work is just one strand among many that have an impact on the public interest.’

JFAR said it took a broad view of the public interest, which included but was not limited to: investors, creditors, savers, insurance policyholders, pension scheme members, employees, consumers, suppliers, users of professional actuarial advice and taxpayers.

Comments are invited by February 20 2015. This discussion paper is relevant to actuaries and actuarial firms, their clients and employers, and end-users and their representatives.

JFAR was established last year by the FRC, the Institute and Faculty of Actuaries (IFoA), the Financial Conduct Authority, the Pensions Regulator and the Prudential Regulation Authority.