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27 July 2015

SL supports UK regulator initiative to enhance industry Actuarial Standards

The Financial Reporting Council (FRC), the UK independent regulator responsible for promoting high quality corporate governance and reporting standards, published a consultation paper in November 2014 to ascertain views on a new framework to enhance Technical Actuarial Standards in the UK. SL Investment Management was one of 48 respondents to the consultation process which closed on 8 March 2015.

SL Investment Management welcomes this regulatory initiative, especially in relation to clarification on what Actuarial elements do, and do not, fall within the scope of the amended framework.

Fred Bell commented, "At SL Investment, we already take a disciplined and rigorous approach to modelling, with much of our complex financial analysis performed within the industry standard Towers Watson 'MoSes' modelling environment. However, as always, some useful ideas have come out of the Working Party's research which we plan to incorporate into our modelling processes going forward."

"In particular, we welcome further clarification on what constitutes Actuarial work, and as importantly, what doesn't. We believe regulation operates best when targeted towards those elements of risk that matter most, reducing unnecessary operational burden addressing inconsequential matters. We believe this provides the best ultimate result for investors."

The consultation process is expected to finalise during 2016, with implementation of the new framework scheduled for the start of 2017. SL Investment Management will be following developments closely.

For further insight please read our briefing on a new framework for Technical Actuarial Standards. Alternatively, contact Fred Bell direct.