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Kingman review

The Kingman Review is an independent review of the Financial Reporting Council (FRC), the regulator for auditors, accountants and actuaries. The review will be led by Sir John Kingman, who has extensive private and public sector experience. Find out more about how the IFoA is responding to the review

Independent Review of the Financial Reporting Council

The Independent Review of the Financial Reporting Council issued a Call for Evidence in June 2018. On 6 August, the IFoA submitted its response to the consultation.

You can read our response.

 

FAQs

What is the Independent Review of the Financial Reporting Council and why is it taking place?

In April 2018, the Government announced its intention to conduct an independent review of the FRC. This followed a number of high profile corporate collapses, notably Carillion, which subsequently led to a joint inquiry by the Work and Pensions and the Business, Energy and Industrial Strategy Select Committees

The Government is therefore undertaking this review to assess the effectiveness of the FRC’s governance, impact and powers, to ensure it is fit for the future.

Find the Review’s Terms of Reference here

 

Who is Sir John Kingman?

Sir John Kingman was appointed by the Secretary of State for Business, Energy and Industrial Strategy to lead the Review. As a consequence, it is sometimes referred to as the Kingman Review.

Sir John is a former senior civil servant who was Second Permanent Secretary to HM Treasury until 2016. He is currently the Chairman of Legal & General.

He is supported by a small secretariat team and an Advisory Group.

 

What is the Financial Reporting Council (FRC)?

The FRC is a UK Non Departmental Public Body that has regulatory roles in relation to auditors, accountants and actuaries in the UK, and is responsible for the UK’s corporate governance code.

Since 2005, the FRC has had specific responsibilities in relation to the regulation of actuaries carrying out work within UK geographic scope (more details below).

 

Why is the Review important to the IFoA?

Whilst the call for evidence predominantly focuses on how the FRC regulates audit and accountancy, the Review also asks whether the existing arrangement for the regulation of actuaries in the UK (put in place following a review in 2005 (the Morris Review)) is still fit for purpose.  

 

What are the current regulatory arrangements for IFoA members?

Since the 2005 Morris Review, the FRC has, by agreement with the IFoA set out in a Memorandum of Understanding, been responsible for three functions relating to the regulation of actuaries in the UK:

  • Independent oversight of IFoA regulation in the UK (including the IFoA qualifications system);
  • Setting of Technical Actuarial Standards (TASs) in relation to UK actuarial work (the IFoA is responsible for all ethical/conduct standards, including the Actuaries’ Code); and
  • Disciplinary enforcement in relation to cases involving IFoA members that potentially give rise to “important issues affecting the public interest in the UK” (the IFoA deals with other disciplinary cases through its Disciplinary Scheme).

The IFoA is responsible for all other aspects of the regulation of its members, including all non-UK work/members, CPD requirements and Practising Certificates, as well as the regulation of the different qualification standards and admissions. The IFoA also retains responsibility for enforcing the TASs in relation to members carrying out UK work.

 

What changes would we like to see as a result of the Review?

The IFoA believes that the model of professional self-regulation subject to effective independent oversight remains the most appropriate arrangement for the regulation of actuaries in the UK.

However, our response highlights some specific aspects of the arrangements where there may be an opportunity to make changes to improve effectiveness as well as to reflect developments in the actuarial profession since the time of the Morris review.

In particular, the IFoA considers that the current arrangements could be sensibly improved by:

  1. clearer distinction between regulatory/qualification (IFoA) and independent oversight (FRC) roles; and
  2. simplified arrangements in relation to the setting of professional standards.

One area where we see no need for change is a suggestion in the consultation for the FRC to receive statutory powers in relation to actuarial regulation.

We believe that there no evidence to suggest that the current arrangements are not serving to protect the public interest and the introduction of a system of statutory regulation, where there is not an identifiable need to do so, seems disproportionate.

 

How was the IFoA’s response developed?

The IFoA established a Steering Group comprised of senior volunteers and the IFoA Executive. The Group worked together throughout the consultation period to inform our response, which was then reviewed and signed off by the Regulation Board, the Policy and Public Affairs Board (PPAB) and Council.

 

Which other professions are affected by the Review?

The Financial Reporting Council also oversees the professional bodies for accountants and auditors in the UK and has particular regulatory roles in relation to audit and accountancy, therefore those professions are also in scope of the Review.

 

What happens next?

The call for evidence closed on 6 August 2018. The Review Secretariat will now consider the evidence it receives and will produce a final report for Government on its findings towards the end of 2018. The Government will then consider the report and will consult on any necessary recommendations or changes in 2019.

In the interim, members of the IFoA Steering Group will continue to engage with the FRC Secretariat Team.

For more information regarding the Review, please visit the review website

For more information regarding the IFoA’s response, please contact the IFoA Regulation team

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Events calendar

  • TIGI 2019 (Technical Issues in General Insurance)

    Royal College of Physicians, 11 St Andrews Place, Regent's Park, London, NW1 4LE
    25-26 April 2019
    Spaces available

    This General Insurance CPD offering has been changed from former years of individual one day seminars to include individual sessions for IFRS 17, Pricing, Capital Modelling and Reserving over a two-day event  packaged as Technical Issues in General Insurance, providing attendees with a varied program . The event is suitable for anyone who works, or are interested, in these areas.

  • Fully booked.

    Data Visualisation helps to communicate information clearly and effectively through graphical means.  This talk will showcase some visualisations that the working party has found useful for common actuarial situations.  The event is now full, however if you would like to join a waiting list, please email Barry_shannon@standardlife.com

  • Francophone Actuaries Meeting 2019

    Aviva, Saint Helen's, 1 Undershaft, London EC3P 3DQ, UK
    2 May 2019

    Spaces available

    L'Institut des Actuaires and French actuaries in the UK, partnered with Aviva, are delighted to be hosting their annual "l'afterwork" event for French speaking actuaries in the UK. The event will mix French and English interventions.

    Register via this link to be added to the guest list:  https://www.eventbrite.com/e/rencontre-annuelle-des-actuaires-francophones-londres-tickets-59758941603

     

     

  • Spaces available

    CPD

    CPD
    1.00 hours

    The CMI SAPS Mortality Committee and Mortality Projections Committee will be holding a joint webinar, aimed primarily at pension scheme trustees, describing considerations relating to setting longevity assumptions in 2019.

  • SIAS EVENT - Hurricane Clustering: A New Reality?

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    7 May 2019

    Spaces available

    The 2017 North Atlantic hurricane season was one of the most active on record. We saw multiple hurricanes coming close together causing significant damage and human loss. The talk discusses whether 2017 was an exceptional year or indicative of what we expect to see in the near future, and the implications for (re)insurers.

  • IFoA Asia Conference 2019, Chengdu

    Crowne Plaza Chengdu Panda Garden, Poly Park 198, No. 1980 ShuLong Avenue,Xindu District, Chengdu
    09-10 May 2019
    Spaces available

    IfoA Logo for eventsOffering a diverse selection of plenary sessions and cross-practice workshops, the annual Asia Conference is the perfect opportunity to discover and discuss current and developing actuarial topics in Asia, whilst providing excellent opportunity to grow your network of contacts.

  • DAG event - Can we overcome unconscious bias?

    KPMG LLP  Saltire Court,  20 Castle Terrace, Edinburgh EH1 2EG
    9 May 2019

    Spaces available

    This session will examine our biases, look at what it feels like to be an outsider and give attendees practical tools and actions we can all take to support and grow diversity and inclusion, within the profession. This session is also designed to meet the objectives of the IFoA’s Stage 3 Professional Skills Training for experienced members.

  • KSS event – IQ+EQ = Future Success

    Royal London, 1 Thistle Street, Edinburgh
    14 May 2019

    Spaces available

    In this interactive session, our facilitators, Russell Borland and Thomas Chalmers, Partners of UK-based coaching consulting firm, Leading Figures, will explore how we can enhance our EQ to make the most of our IQ. They will introduce an Emotional Intelligence framework developed by psychologist Daniel Goleman and provide participants with an opportunity to personally assess their own Emotional Intelligence.  To register please email Caitlin.stronach@royallondon.com

  • CILA 2019

    30 Euston Square, London NW1 2FB
    14 May 2019

    Spaces available

    CILA is one of the pre-eminent events in the annual Life calendar. It is aimed at practicing life actuaries from life offices, consulting firms and other employers of actuaries. It will also be of interest to all those who work in or advise on, the life assurance market in the UK and Europe.

  • KSS event – Bulk Annuity Market Update

    Willis Towers Watson 2 Lochrin Square, 96 Fountainbridge, Edinburgh EH3 9QA
    15 May 2019

    Fully booked.

    This KSS talk will give a bulk annuity market update over 2018 and for 2019 and beyond.  The presenters will also consider bulk annuity options as part of pension scheme de-risking strategies, and how pension schemes can best prepare when requesting a quote in order to achieve a favourable outcome. Please note this event is now full, however, if you wish to join a waiting list, please email Dawn.Neil@willistowerswatson.com.

  • KSS event – Bulk Annuity Market Update

    Willis Towers Watson 2 West Regent Street Glasgow G2 1RW
    16 May 2019

    Spaces available

    This KSS talk will give a bulk annuity market update over 2018 and for 2019 and beyond. The presenters will also consider bulk annuity options as part of pension scheme de-risking strategies, and how pension schemes can best prepare when requesting a quote in order to achieve a favourable outcome. To book a place please email Dawn.Neil@willistowerswatson.com

  • How to protect SMEs from Cyber Attacks

    Staple Inn Hall, High Holborn, London, WC1V 7QJ.  
    16 May 2019

    Spaces available

    The aim of this interdisciplinary symposium is to gain understanding and awareness of UK private SMEs about their insurance need as a part of cyber risk management and mitigation strategies.

  • Risk and Investment Conference 2019

    Amba Hotel, Charing Cross, Strand, London WC2N 5HX
    20-21 May 2019
    Spaces available

    This year's event begins with a Professional Skills Training plenary to help build your CPD, followed by a formal drinks reception and dinner on the evening of 20 May.  The following day will then be a programme full of topical plenaries and workshops covering the latest trends and topical issues in the risk and investment sector with plenty of opportunities to network with colleagues and build your CPD.

  • LMS Invited Lectures 2019

    ICMS, The Bayes Centre, 47 Potterrow, Edinburgh EH8 9BT
    20 May 2019 - 24 May 2019

    Spaces available

    On May 20-24 2019, Prof Søren Asmussen (Aarhus University) will deliver a course on lectures on advanced topics in life insurance mathematics.  This will be held at the International Centre for Mathematical Sciences, Edinburgh, and will be accompanied by supporting lectures from Prof Corina Constantinescu (University of Liverpool) and Prof Andrew Cairns (Heriot-Watt University). To register, please visit https://www.icms.org.uk/LMSAsmussen.php.

  • Mortality and Longevity Symposium 2019

    ICC Birmingham, Broad St, Birmingham B1 2EA
    04-05 June 2019
    Spaces available

    The Mortality and Longevity Symposium aims to expand delegates’ horizons by giving a better view of the scope of current mortality research in a wide variety of relevant disciplines, and by providing a forum to discuss the implications for actuarial practice and it will be of interest to all actuaries concerned with setting or reviewing mortality and longevity assumptions, underwriters, demographers, epidemiologists, policy-

  • Protection, Health and Care Conference 2019

    ICC Birmingham  Broad St, Birmingham B1 2EA
    04-06 June 2019
    Spaces available

    The Protection, Health and Care Conference is an annual conference aimed at all insurance professionals with a passion for harnessing insurance risk in their organisations. The conference uses a combination of workshops by individuals who work at the coalface and ‘big name’ experts to explore how innovation, technological/medical advances, the political landscape and other market development will impact the Protection, Health and Care markets.

  • NED Event: Behavioural Finance and Boards

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    18 June 2019

    Spaces available

    Substantial work has been undertaken in the field of behavioural finance to explore the psychological factors affecting investment decisions made by individuals.  In contrast, “behavioural” factors (such as politics or human psychology) affecting decisions and actions made by institutional investors, such as insurers or pension schemes, are less understood.

  • Pensions Conference 2019

    Bristol Marriott Hotel City Centre, 2 Lower Castle Street, Old Market, Bristol, BS1 3AD
    18-19 June 2019
    Spaces available

    Covering current topics and industry trends, the conference also includes a pre-conference evening dinner (18 June) giving you the opportunity to develop your network. 

  • KSS event – FinTech and The Actuarial Profession

    EY, Atria One, 144 Morrison Street, Edinburgh
    19 June 2019

    Spaces available

    This KSS talk from FinTech Scotland's CEO will explore the mission to create an integrated Fintech ecosystem through provision of funding, support, infrastructure and talent that recognises and responds to the needs of all stakeholders - and the overarching aim for Scotland to be one of the top 5 Fintech global leaders by 2020.

    To book your place, please email Barry_Shannon@standardlife.com 

  • Current Issues in General Insurance (CIGI) 2019

    Inmarsat, 99 City Road, London, EC1Y 1BJ
    19 June 2019

    Spaces available

    CIGI will provide an excellent and diverse line-up of speakers, each providing their insight and knowledge on a range of topics.  The programme will be broad in nature, so will be of most value to those with some experience in the industry. 

  • AGM and Presidential Address 2019

    The Hub  Castlehill Edinburgh EH1 2NE
    26 June 2019

    Spaces available

    Notice is hereby given that the ANNUAL GENERAL MEETING of the INSTITUTE AND FACULTY OF ACTUARIES will be held at The Hub, Edinburgh on Wednesday 26 June 2019 at 16.30 (Preceded by tea from 16.00) and followed by a PRESIDENTIAL ADDRESS given by John Taylor.

  • SIAS: The Impact of Air Pollution on Health and Life Expectancy

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    2 July 2019

    Spaces available

    Air pollution has gained increasing attention lately. Nicola Oliver, head of longevity and mortality research for Medical Intelligence, will discuss not only the impacts of air pollution on health and life expectancy but also how as an industry we should be addressing it.

  • GIRO Conference 2019

    EICC, The Exchange, 150 Morrison St, Edinburgh EH3 8EE
    24-26 September 2019
    Spaces available

    GIRO is attended annually by over 800 delegates and speakers who are keen to discuss key topics such as Pricing, Reserving, Modelling and the future of the insurance industry. GIRO 2018 was a huge success and we have opened bookings early for what we hope will be another brilliant conference at the EICC in Edinburgh this year.