The Morris Review. Peter Clark Institute of Actuaries

Transcription

1 The Morris Review Peter Clark Institute of Actuaries

2 In 1762 Equitable Life Assurance Society was established as the first mutual life assurance company, set up and run for its members and continues to run as the oldest mutual life assurance company in the UK.

3 Although the longest surviving life assurance company, it has in recent years undergone an exceptionally difficult period.

4 Sir Derek Morris

5 Morris Review Consider what professional and/or other regulatory framework would best promote recognised, high-quality and continuously developing actuarial standards, openness in the application of actuarial skills, transparency in the professional conduct of actuaries, accountability for their actions and an open and competitive market for actuarial advice in the UK.

6 Morris Review Recommend a framework that will be independent in representing the public and consumer interest, and be accountable, flexible, transparent, and no more burdensome or restrictive than is clearly justified. Make recommendations on the future role of the Government Actuary, the functions of his Department and its future institutional status.

7 Morris Timetable Consultation : June September 2004 Interim report : December 2004 Further round of consultation Final report : March 2005

8 Profession s Approach to Morris Positive, open engagement Confident in our own reforms Willingness to embrace further change Regular dialogue and supplying information Recognise change happening to all professions (accountancy and law) Focus on future not argue about past

9 Morris Final Recommendations Market for actuarial services Regulating the Profession Education & CPD Actuarial roles Standard setting Public interest and accountability Scrutiny and discipline

10 Market for Actuarial Services Understanding gap Not enough challenge Educating non executive directors New communication standard (first job for new Standards Board)

11 Regulating the Profession Self regulation alone Statutory regulation Understanding gap Not enough challenge Independent Educating Market oversight for non Actuarial executive Services directors New communication standard (first job for new Standards Board) The central recommendation of the review is that the actuarial profession should be subject to independent oversight by the FRC

12 Proposed FRC Structure Board Council Board for Actuarial Standards Accounting Standards Board Auditing Practices Board POBAA Review Panel Investigation and Discipline Board

13 The review has no reason to doubt that the overwhelming majority of actuaries in the UK are dedicated, skilled professionals providing important and useful advice, with commitment, integrity and a strong sense of duty.

14 The review has no reason to doubt that the overwhelming majority of actuaries in the UK are dedicated, skilled professionals providing important and useful advice, with commitment, integrity and a strong sense of duty. However, the review has also identified a number of quite serious problems faced by the profession in the UK and sets out a challenging agenda for reform for the profession.

15 Discipline 4 actuaries referred to Tribunal Judicial Review

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17 Last Saturday s paper

18 LESSONS Trust External Scrutiny Communication

19 Trust Trust me, I m an actuary doesn t have any more resonance with me than Dr Harold Shipman saying Trust me, I m a doctor Dame Sheila McKechnie - Consumers Association

20 Harold Shipman He was jailed for life in January 2000 for murdering 15 patients. An official report later concluded he killed between 215 and 260 people over a 23-year period.

21 External Scrutiny Openness Transparency Non-actuarial involvement

22 Communication Board Policyholders Regulator Profession

23 Communication Modern mathematics is a perplexing business. Not only is it difficult to do but mathematicians usually find it near impossible to explain to non-specialists. Economist Book Review

24 Guidance Note 2 (extract) It is essential that the report is expressed in a form which is accessible to its readers and does not conceal important issues inadvertently by, for example, undue length or complexity. An executive summary or overview drawing attention to important issues would be helpful.

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