Groupe proposes public interest and technical standards
In a move to ensure greater protection for policyholders, without inhibiting innovation and market development, The Groupe Consultatif Actuariel Européen (the Groupe) make proposals for Solvency II professional standards.
Reportedly, the majority of those who will carry out the actuarial function under Solvency II, will be qualified actuaries and members of the professional actuarial bodies which make up the Groupe.
The Groupe proposes that there should be two main categories of standards: 1) public interest standards and 2) technical standards. Public interest standards would include qualification standards, ethical standards, governance standards and communication standards. Technical standards would include interpretative standards and technical implementation standards.
Caroline Instance, chief executive of The UK Actuarial Profession, said: “The Groupe’s submission considers the various stages of the process of setting, implementing and enforcing standards and makes some suggestions on how these responsibilities might be allocated. The paper acknowledges that the issues involved in setting a full range of public interest and technical standards are far-reaching and complex. The paper also notes that, currently, there is a wide diversity within Europe of types of standards and arrangements for setting them, with differing roles for the professional bodies, supervisors or regulators and new public interest bodies such as the BAS in the UK.
“We consider that the implications of the Groupe’s submission for the UK should be considered collectively by the FSA, the FRC and the UK Profession and we shall be taking this forward with our colleagues in these organisations.”