Are Standards of Actuarial Practice of any use to Actuaries in Norway?

Transcription

1 Are Standards of Actuarial Practice of any use to Actuaries in Norway? Oslo, 15 February 2018 Presented by: Alf Gohdes, Chairman of the IAA s ASC in the period 2015 to 2017

2 Content Practice Standards what is their purpose? Are standards useful? IAA Strategy on actuarial Standards IAA model standards - past, present and future Criteria for an and Due Process key points Actuarial Standards Committee 2

3 Practice Standards What is their purpose? The actuarial profession is engaged in the decision-making process within the financial services industry, in the area of social protection and in the management of risk, contributing to the well-being of society as a whole. The cornerstones of good governance of the profession are local: Qualification Standards Code of Conduct Practice Standards Disciplinary Process Exams, credentials, CPD, experience requirements Rules for professional and ethical conduct Guidance how actuarial work should be performed Enforcement of Code and Standards 3 3

4 About standards. Actuarial standards of practice usually apply to the individual actuaries and address how actuarial work should be performed Standards are generally promulgated by a local standard-setter (often, but not always, the local actuarial association) The applicable regulator in a jurisdiction can require such standards to be followed in that jurisdiction. Standards should be supported by a discipline process to admonish, reprimand, suspend, or even expel a member for material violation of applicable standards. 4

5 Are Practice Standards Useful? No: We have done very well without them to this point Additional work adds costs to us and our clients Standards put us at a competitive disadvantage with other professions 5

6 Yes: Are Practice Standards Useful? Protect the public by Making actuaries professionally accountable Promoting credibility and completeness of the actuarial work product Providing a means for actuarial practice to be reviewed regularly and remain current Furnishing criteria for evaluating actuarial work products Providing an objective basis for evaluating an assertion of unprofessional work Provide benefits to actuaries by Providing appropriate guidance, particularly in areas that may be unfamiliar Enhancing actuaries profile by increasing public confidence in actuarial work Offering evidence of appropriate professional practice - in any disciplinary action Providing support/reference if appropriate practice is challenged G20 is demanding standards for all professions Value to regulators: standards/regulations 6 complement each other

7 IAA Strategic Objective 3 (of 6) Establish, maintain and promote common standards of actuarial education and common principles of professional conduct. Promote the development and issuance of actuarial standards in the jurisdictions of all Full Member Associations, and the global convergence of actuarial standards. Objectives for s Widely accepted as a basis for convergence by local standardsetters Recognized by the parties who rely on actuarial standards such IASB, IAIS, IOSCO and the local regulators and audit firms Widely seen as contributing to the public good Promote high quality actuarial practice 7

8 IAA develops and promotes Model International Standards of Actuarial Practice (s) s are Model Standards, based on the principle of subsidiarity* *The IAA will restrict its activities to strategies and programs which require international co-ordination or direction, or can be handled more efficiently across national and regional boundaries. It will not become involved with actions at the level of the Member Associations or regional groups of actuarial associations, except at the express invitation of such an association or group. The IAA will therefore take any measures necessary to avoid duplication or overlap with the activities of Member Associations or regional groups of actuarial associations. 8

9 The IAA encourages relevant actuarial standard-setting bodies to maintain a set of standards that is substantially consistent with s to the extent that the content is appropriate for actuaries in their jurisdiction. A relevant actuarial standard-setting body may choose to adopt, adapt, endorse an, or confirm that existing standards are substantially consistent with the. This too is voluntary: The standard setter is free to do nothing at all. 9

10 Suggested approaches proposed in Preface Adopting an as a standard with no modifications Customizing an by revising the text of the to the extent deemed appropriate while ensuring substantially consistent with it; Endorsing an by declaring that it is appropriate for use in certain clearly defined circumstances; Modifying existing standards to obtain substantial consistency with an ; or Confirming that existing standards are substantially consistent. s suggest that substantial consistency is achieved if: There are no material gaps in the local standard(s) in respect of the principles set out in the ; and The standard or set of local standards does not contradict the. 10

11 Guidelines for content and guidance: Should have widespread practical relevance to actuarial work Existing pronouncements by any supranational organization do not already provide sufficient guidance Guidance can usually be stated as the actuary should Failure to comply with must would lead to disciplinary action May when an activity is appropriate in certain circumstances Principles-based rather than prescriptive (i.e. what not how ) Should not restrict practice relative to a non-actuary Should not inhibit development and use of new techniques or methods Should not shift responsibility from principal to actuary Should not contain purely educational material 11 11

12 2010: 2011: 2012: 2013: 2014: 2015: 2016: 2017: Strategic Objective 3 approved and Interim Actuarial Standards Subcommittee established Due Process for s adopted 1 (General Actuarial Practice) adopted IASSC renamed Actuarial Standards Committee (ASC) 2 (Social Security) adopted EC s Strategic Action Plan for s approved Revised Due Process approved 3 (IAS 19 Employee Benefits) adopted 1A (Governance of Models) adopted 5 (Insurer Enterprise Risk Models) adopted Conformance changes to s 1, 2 and 3 and the Glossary adopted 12

13 The current state of s (some work in progress ) House of s House of s 2 est est ? ? 1 (est. 2012) ? 3 est

14 Summary of responses to 1 by FMAs 14

15 s Under Development (with expected completion dates) 2018: 2019: 20??: 6 (Enterprise Risk Management Programs and IAIS Insurance Core Principles) 1 Update and possible merger with 1A 4 (IFRS 17 Insurance Contracts) 7 ( Current estimates and other matters in relation to the IAIS capital standards) temporarily suspended Raising the profile of s Increase level of interaction between ASC and FMAs Run webcasts upon adoption Defining and monitoring success 15

16 House of s (status end of 2018 if ED on 1 is adopted) House of s House of s 2 est est ? ? ? 3 est (est. 2012, rev. 2018) 16

17 for topics to be considered for s Will serve the public interest Are in a recognized or emerging area of actuarial practice There is an expectation that a sufficient number of FMAs or standard setters will find the useful Need to justify the work involved in producing the 17

18 Any party may propose a topic for a new Before work on an can commence, it must first be on the Strategic Action Plan that IAA Council approves A Statement of Intent (SOI) for a new is exposed for comment, then (after producing report on action taken) must be finalized and approved by IAA Council Exposure Draft(s) of are exposed for comment ASC reviews comments and produces a report on action taken Final draft and report are exposed for final comment Final and final report are recommended by EC and adopted by Council (by an affirmative vote of at least 80%) 18

19 Membership Protocol To achieve a reasonable balance by: Practice area Territory Size of home association Nature of employment Experience Include members with experience of the varying forms of regulatory framework for actuarial standards which exist, and experience in writing actuarial standards Terms of office are an initial 3 year-term, renewable up to a maximum of 6 years Total membership of the committee between 9 and 12 Current representation is: Europe: 3 North America: 4 Asia, Australia, South Africa and the Caribbean: 1 each 19

20 Al Beer Andrew Chamberlain Maryellen Coggins Luc Farmer Toshihiro Kawano Dieter Köhnlein Hillevi Mannonen Greg Martin Godfrey Perrott Marius du Toit Lisa Wade (USA), Vice Chair (UK), Vice Chair (USA) (Canada) (Japan) (Germany) (Finland), Vice Chair (Australia) (USA), Chair (South Africa) (Barbados) EC liaison: IAA staff liaison: Tomio Murata (Japan) Amali Seneviratne (Canada) 20

21 Visit the s webpage: STANDARDS_ Visit the ASC webpage: DEX Contact me: alf@gohdes.eu 21

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