the younger members convention life with new regulations colin j weir
TRANSCRIPT
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The Younger Members Convention
Life With New Regulations Colin J Weir
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Contents
Prudential Regulation What it means for Actuaries What it means for Products
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Contents?
Prudential Regulation? What it means for Actuaries? What it means for Products?
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Contents?
Prudential Regulation? What it means for Actuaries? What it means for Products?
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Contents?
Prudential Regulation? Where have we been? Where are we going? How are we getting there?
What it means for Actuaries? What it means for Products?
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Contents?
Prudential Regulation? Where have we been? Where are we going? How are we getting there?
What it means for Actuaries? What it means for Products?
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Prudential Regulation – where have we been?
3rd Life Directive Prudent Reserves Resilience Test Formulaic Solvency Margin
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Financial Services Authority
Single Regulator for Financial Services Industry
Maintaining confidence in the UK financial system. We
Promoting public understanding of the financial system.
Securing the right degree of protection for consumers.
Helping to reduce financial crime.
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Prudential Regulation – where are we going?
Level Playing Field Basle Committee on Banking Regulation
Pillar 1: Quantitative Regime Pillar 2: Supervisory Oversight Pillar 3: Disclosure
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Prudential Regulation – how are we getting there?
Integrated Prudential Sourcebook
Risk Based Capital
Identify Assess Monitor Control
Market Risk Credit Risk Liquidity Risk Insurance Risk Group Risk Operational Risk
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Prudential Regulation – how are we getting there?
Consultations CP97: Integrated Prudential Sourcebook (PSB) CP128: Liquidity Risk CP136: Individual Capital Adequacy Standard (ICAS) and
Supplementary Capital Assessment (SCA) CP140: Systems and Controls (SYSC section of PSB) CP142: Operational Risk CP143: CP97 version 2
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Contents?
Prudential Regulation? Where have we been? Where are we going? How are we getting there?
What it means for Actuaries? What it means for Products?
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Contents?
Prudential Regulation Where have we been? Where are we going? How are we getting there?
What it means for Actuaries? What it means for Products?
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Contents?
Prudential Regulation Prudent Margins Where are we going? How are we getting there?
What it means for Actuaries? What it means for Products?
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Contents?
Prudential Regulation Prudent Margins Sophisticated Models of risk How are we getting there?
What it means for Actuaries? What it means for Products?
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Contents?
Prudential Regulation Prudent Margins Sophisticated Models of risk Consultation on PSB
What it means for Actuaries? What it means for Products?
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Contents?
Prudential Regulation Prudent Margins Sophisticated Models of risk Consultation on PSB
What it means for Actuaries? What it means for Products?
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Contents?
Prudential Regulation Prudent Margins Sophisticated Models of risk Consultation on PSB
What it means for Actuaries? Skills and Work Accountability
What it means for Products?
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What it means for Actuaries – Skills and Work
Sophisticated models of… … greater variety of risks
Clear documentation of processes… … the board and the FSA
Accountability…?
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FSA With Profits Review
“Future Role of actuaries in the governance of Life Insurers”
“Actuarial Function” – Approved Person Regime Board to be responsible for mathematical reserves Board to produce FCR, available to FSA Appointed Actuary to advise on ‘discretion’ with regard to
With Profits business Abolition of Appointed Actuary Role for non profit
business
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FSA With Profits Review
With Profits
Principles and Practices of Financial Management With Profits Fund Committee Appointed actuary to advise on ‘discretion’ with regard
to WP business Fairness
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FSA With Profits Review
Fairness
“Fairness has not been exhaustively defined by the courts and continues to be a flexible concept. However, the essence of ‘fairness’ draws on common elements of natural justice, ethics and morality”
“Dependent on the circumstances of the case” “Can change over time, as circumstances, knowledge
and expectations change” “Often easier to judge with hindsight” “Not necessarily a one-sided concept”
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Contents?
Prudential Regulation Prudent Margins Sophisticated Models of risk Consultation on PSB
What it means for Actuaries? Skills and Work Accountability
What it means for Products?
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Contents?
Prudential Regulation Prudent Margins Sophisticated Models of risk Consultation on PSB
What it means for Actuaries More technical actuarial work Accountability through the board
What it means for Products?
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Contents?
Prudential Regulation Prudent Margins Sophisticated Models of risk Consultation on PSB
What it means for Actuaries More technical actuarial work Accountability through the board
What it means for Products?
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Product Reviews
FSA With Profits Review Tiner and Baird Sandler Pickering Inland revenue and Pensions Simplification?
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Contents
Prudential Regulation What it means for Actuaries What it means for Products
Scrutiny
Simplification (Products)
Sophistication (Solvency)
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The Younger Members Convention
Life With New Regulations Colin J Weir