For over a decade, the Financial Reporting Council (FRC) has provided regulatory oversight of the IFoA in the UK, through our mutual agreement following the Morris Settlement.
For over a decade, the Financial Reporting Council (FRC) has provided regulatory oversight of the IFoA in the UK, through our mutual agreement following the Morris Settlement. We see effective independent oversight as important to our credibility as a global regulator of you, our members.
In June, the government launched an independent review of the FRC, which is being led by Sir John Kingman. This review primarily focuses on the FRC's activities regarding accounting and audit; however, it will consider questions around the arrangements for actuarial regulation in the UK.
We are sparing no effort to contribute to this review, providing Kingman with the best possible evidence base so that he can make a fair assessment and provide valuable, proportionate recommendations. We must recognise there is a real risk to our self-regulation status, but with the risk comes an opportunity to refine the balance of activities between the IFoA and its oversight body. As a global organisation, we have moved a long way during the past decade; it is absolutely right that the current arrangements are thoroughly tested.
Just as we see value in independent oversight of the IFoA, there is inherent value in an independent review of the quality of the oversight provided in helping the IFoA move forward. This is an opportunity to push the bar higher. The call for evidence closed on 6 August, and a final report is expected at the end of the year.
Derek Cribb is the chief executive of the Institution and Faculty of Actuaries