- FRC moves on to review of sector-specific Technical Actuarial Standards
- FCA consults on expansion of dormant assets scheme
- PASA publishes Cybercrime Protection checklist
FRC moves on to review of sector-specific Technical Actuarial Standards
The Financial Reporting Council has launched the second phase of its promised post-implementation review of its suite of Technical Actuarial Standards, this time focussing on:
- The sector-specific TASs – ie those relating to insurance, pensions and funeral plans
- Actuarial Statement Of Recommended Practice 1 (ASORP 1); and
- Other potential sector-specific areas which might benefit from further technical standards, requirements or application guidance
The response to its first phase was issued in November 2021 (see Pensions Bulletin 2021/50) and we understand that a consultation on a revised TAS 100 is due to be launched shortly.
In relation to sector-specific standards, the FRC says that as the nature and extent of technical actuarial work and the environment in which actuaries operate has evolved considerably since the current TAS suite was published in 2016, it would like to know whether its current standards remain fit for purpose and whether there are some new areas that ought to be covered.
In relation to pensions (TAS 300), the FRC suggests that changes may be needed in two areas:
- Scheme funding and financing – as users might like actuarial information more related to the insurance market in scheme funding reports as buy-out becomes more viable, as well as greater disclosure of past and future risk transfer solutions in such reports. Some specific provisions related to collective money purchase schemes might also be required
- Individual calculations – these include changes to TAS 300 proposed by the Institute and Faculty of Actuaries in December 2020 (see Pensions Bulletin 2020/51) and changes necessitated by the increasing use of incentive exercises embedded in business-as-usual processes, such as pension increase exchange offers to all members at retirement
The FRC also notes that the number of actuaries working in investment has increased in recent years. During that time investment itself has grown more complex, with more investments containing demographic elements (such as longevity swaps) and an increase in demand for non-traditional as well as “green” assets. The FRC asks whether these developments warrant the fields of investment and finance having their own sector-specific TAS.
The call for feedback closes on 8 July 2022.
Comment
Although the FRC says in introducing its call for evidence “what, if anything, needs to be changed”, it clearly has a shopping list of potential changes some of which could well come to pass.
FCA consults on expansion of dormant assets scheme
The Financial Conduct Authority is consulting on changes to its Handbook to reflect the expansion of the Dormant Assets Scheme. This follows the Dormant Assets Act 2022 receiving Royal Assent in February 2022 (see Pension Bulletin 2022/08).
The changes to the FCA’s rules and guidance are to enable insurance, pension and securities firms to contribute dormant assets to the expanded scheme. The changes include the ability of a customer or former customer of insurers and pension providers who have their assets transferred under the expanded scheme to have access to the same dispute resolution service that is available to those who have assets transferred under the existing scheme.
Consultation closes on 17 June and the FCA intends to finalise its proposals in July 2022.
PASA publishes Cybercrime Protection checklist
The Pensions Administration Standards Association has published a short document in which it sets out a Cybercrime Protection checklist, aimed at helping scheme administrators in the fight against cyber-attacks. The checklist is in four parts and builds on guidance issued in November 2020 which set out information on cybercrime, how it has evolved over time and the protection measures which can be taken.
