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The FRC yesterday published ‘Update on the consultation: A new framework for Technical Actuarial Standards’ following its consultation release in November 2014.

Most responses to this consultation suggested that we  defer the introduction of TAS 100 (the generic technical actuarial standard which is proposed to replace the existing Generic TASs) until changes to specific TASs are ready to be introduced to avoid two sets of changes in a short period of time.

The FRC agreed and TAS 100 will now be introduced with revisions to the FRC’s Specific TASs, currently covering insurance, pensions, transformations and funeral plans. A review draft of TAS100 and an analysis of reports to the consultation will be published when the FRC consults on the revised Specific TASs later this year. 

Notes to editors:

1.   The FRC is responsible for promoting high quality corporate governance and reporting to foster investment.  We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.  We represent UK interests in international standard-setting.  We also monitor and take action to promote the quality of corporate reporting and auditing.  We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.

2.   Actuarial work is central to many financial decisions in insurance and pensions but is increasingly recognised as adding value in other areas where the modelling and evaluation of risk and financial returns over time is required. High quality actuarial work assists users by enabling them to make decisions in support of their objectives while mitigating risks to the achievement of those objectives. Poor quality or insufficient actuarial work can result in decisions being made which are detrimental to the public interest.

3.   In November 2014 the Financial Reporting Council (FRC) published a consultation on a new framework for Technical Actuarial Standards (TASs).
The proposals in the consultation included:

• the introduction of a new FRC actuarial standard (Technical Actuarial Standard 100: Principles for Actuarial Work “TAS 100“) with high-level principles applicable to all actuarial work – TAS 100 will replace the FRC’s existing Generic Technical Actuarial Standards; and
• a review of the scope and content of the FRC’s Specific TASs based on the results of a risk assessment process informed by feedback on our recently published discussion paper Joint Forum on Actuarial Regulation: A Risk Perspective.

These proposed changes aim to ensure that users can rely on the quality of actuarial work, including in developing areas of actuarial work where risks to the public interest may not yet have been identified or crystallised.

4.   Currently, there are three Generic TASs, which apply across a wide range of actuarial work principally in insurance and pensions, on data, modelling and reporting actuarial information. There are also four Specific TASs, applying to work in insurance, pensions, funeral plans and transformations. The Generic TASs were issued in 2009 and 2010 and the Specific TASs were issued in 2010 and 2011.

5.   Under the terms of a Memorandum of Understanding (MoU) between the IFoA and the FRC, the IFoA requires those members to whom the TASs are intended to apply to observe them.

6.   The November 2014 consultation: A new framework for Technical Actuarial Standards can be found at: https://www.frc.org.uk/Our-Work/Codes-Standards/Actuarial-Policy/Recent-Consultations.aspx

7.   All Press enquiries should be directed to:

• Peter Timberlake, Head of Communications on telephone: 020 7492 2397/07768 502332, or email p.timberlake@frc.org.uk
• Sophie Broom, Communications Manager, on telephone: 020 7492 2395/07845 947902 or email: s.broom@frc.org.uk
• Rita Carolan, Communications Officer on telephone: 020 7492 2307/07428 149096 or email: r.carolan@frc.org.uk 

View Consultation Paper:

https://www.frc.org.uk/Our-Work/Publications/Actuarial-Policy-Team/Consultation-Update-A-new-framework-for-Technical.pdf