UK - The Actuarial Profession has promised to "open its doors" to Sir Derek Morris when he begins his review in the wake of the Penrose Report on failings at Equitable Life.
The Morris Review – which begins on May 1 – aims to toughen regulation, improve standards, promote greater transparency and ensure actuaries are held accountable for their actions.
The review was ordered by the Treasury after Lord Penrose cited serious flaws within the mutual’s senior management, the Government Actuary’s Department, the actuarial profession, the department of trade and industry, the Treasury and the regulatory system itself.
Financial secretary to the Treasury Ruth Kelly MP said: “Actuaries play a vital role in the financial services industry and as a profession have placed admirable emphasis on high standards of technical ability, knowledge and integrity.
“However, Lord Penrose’s report has made it clear that relying on this is not enough. A modern professional or regulatory framework is necessary. Given its significant role in the affairs of the actuarial profession, it is appropriate that GAD also be considered by the review.”
Institute of Actuaries president Jeremy Goford said the profession would open its doors to Sir Derek.
The Association of Consulting Actuaries also welcomed the review, but denied fault within the industry.
Spokesman Andrew Vaughan said: “There is recognition changes need to be made. However, this is not because there are any problems.”
The review – which is due to deliver a report by Spring 2005 – will:
- Examine the roles of actuaries in the financial services sector.
- Examine the relationship between GAD and the actuarial profession and with other parts of government.
- 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’s Department, the functions of his department and its future institutional status.
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