Queen’s University Belfast 15 October 2008 Georgina Warren Secretary to the Education Committee The Actuarial Profession

What does an actuary do? Actuaries apply their statistical and mathematical expertise to the financial world Actuaries analyse past events, assess current risks and use problem solving skills to propose the best solution to business decisions

What does an actuary do? Actuaries help inform future investment decisions companies need to make to ensure that all risks, big or small, are calculated Actuaries communicate complex financial issues in an understandable way

Where do actuaries work? Consultancies Insurance companies Investment and retail banks Government/Civil Service Capital Projects

The Actuarial Profession Professional qualification Well respected profession Variety, flexibility and a challenging career Internationally recognised business qualification with overseas opportunities Excellent rewards and benefits

Professional qualification The Faculty and Institute of Actuaries are the UK professional bodies for actuaries On average it takes 3-6 years to qualify

Professional qualification Once qualified, members become Associates or Fellows of either the Faculty of Actuaries (AFA/FFA) or the Institute of Actuaries (AIA/FIA)

Well respected profession Actuaries are amongst the most influential of the financial professions Actuaries have a commercial, as well as technical role They are responsible for upholding the highest professional standards

Well respected profession Actuaries work with senior people from other professions or organisations Actuarial skills are well placed as the world’s financial markets become more complex

Variety, flexibility and a challenging career Actuaries work in diverse industries and areas of business They are analysts, risk assessors, consultants and troubleshooters As the skills of actuaries are being increasingly recognised, wider opportunities are becoming available

Variety, flexibility and a challenging career Actuaries can move between different areas of actuarial work Actuarial work offers management opportunities, often at the highest level Good work/life balance

Internationally recognised qualification Our qualifications are recognised throughout the world Actuaries work around the world Opportunities for secondments overseas, even at trainee level

Excellent rewards and benefits Graduate entry salaries are offered between £20-£26K, according to the sector and location of the position Student actuaries are supported throughout their training with paid study leave, tuition support and mentoring

Excellent rewards and benefits Salaries increase as student actuaries pass the exams A recently qualified actuary will earn in excess of £53,000 however senior actuaries can earn £100,000+

Actuaries are experts in assessing the financial impact of tomorrow’s uncertain events by: Analysing the past Modelling the future Assessing the risks involved Communicating what the results mean

What do employers look for? A good academic record Good communication skills IT skills An interest in business Language skills Commitment to the exams and your career Enthusiasm

The Examination System Core Technical CT1-CT9 ST1 ST2 ST3 ST4 ST5 ST6 SA6 SA1 SA2 SA5 SA4 SA3

The Examination System Components –Core Technical – 9 subjects inc 2 day Business Awareness course –Core Applications – 3 subjects inc 2 day Modelling course –Specialist Technical – 2 from 6 subjects soon to be 2 from 8 –Specialist Applications – 1 from 6 subjects –Alternative routes at ST and SA level –Practice Modules –3 years’ experience + WBS

Intermediate qualifications Diploma in Actuarial Techniques All Core Technical and Business Awareness Certificate in Finance & Investment CT1, CT2, CT4, CT7, CT8, CA1 + Business Awareness Associate All Core Technical + Core Applications Business Awareness Associate Professionalism Work-based skills

Exemptions Accredited Universities Agreement in place e.g. BSc in Actuarial Studies at Queen’s Agreed criteria for blocks of exemptions Independent Examiner appointed by the Profession to: -Review the examinations and coursework -Make recommendation on exemptions for others You need to apply to the Registry in Oxford to pay for and formalise your exemptions

Exemptions Non-Accredited Universities –No formal agreement in place –Need to submit details of courses studied and grades

Exemptions –Details and application forms are on our website –You need to apply to the Registry in Oxford to pay for and formalise your exemptions

Professionalism characteristics of a profession controls over the Profession the Professional Conduct Standard the Disciplinary Scheme

Characteristics of a profession 6 key characteristics of a profession are: Members join together to apply a specialised skill The skill has been developed through appropriate education Members have a special relationship with those served

Characteristics of a profession 6 key characteristics of a profession are: Recognised by the public as an authority in field of expertise, able to serve the public interest Standards re competence and conduct of members High level of integrity by members in exercising judgement

What do members and their clients, and the public gain from the existence of the Profession? Members Agreed standards Mutual support Lobby strength Status Income Clients, Public Specialist skills Confidential service Integrity Input into public debate Statutory roles

Controls over the Profession The Profession’s Controls Professional Conduct Standard CPD Scheme Disciplinary Scheme Non-technical Guidance Notes Practising certificates Education External Controls Financial Reporting Council Professional Oversight Board Board for Actuarial Standards Accountancy and Actuarial Disciplinary Board Technical Guidance Notes UK regulation of investment activities – impact on actuaries All other relevant legislation

Regulation of the UK Profession Financial Reporting Council Professional Oversight Board Councils Faculty and Institute Board for Actuarial Standards Accountancy and Actuarial Disciplinary Board

Professional Conduct Standard (‘PCS’) 12 key aspects of the PCS  All members must conform – spirit and letter  Conscience of members to maintain highest standards  Profession regulates individual members  Obligation to serve the public interest  Judgement of individual members  People must have absolute confidence in us

Professional Conduct Standards (‘PCS’) 12 key aspects (cont’d)  Proper regard for professional guidance  Must not give advice unless competent  Breach of PCS – disciplinary procedures  Need to disclose a conflict or a financial interest  Avoid unfairly injuring reputation of another member  Publicity that detracts from standing of the profession – not allowed, unless in public interest Disciplinary Scheme applies to all members and can result in …

Disciplinary Scheme can result in  Reprimand  Retraining  Fine  Withdrawal of Practise Certificate  Suspension from membership  Expulsion Some recent cases …

Recent Adjudication/Tribunal Panel cases Exam cheating – exclusion from readmission to membership for up to 5 years Failure to reply to Trustees in timely fashion and to comply with Guidance Note – reprimand and attendance at Professionalism Course. Using incorrect value of assets, not checking accuracy of data, not stating audited accounts not available – reprimand, attendance at Professionalism Course, £5,000 fine. Breaches of PCS, ignoring order of DPB Committee, advising while not licensed, failing to pay fine – expulsion for 5 years and costs of £14,000. Equitable Life - expulsion

Why is it a good career? An actuarial career is: Interesting Challenging Different day to day The chance to impact on real lives in real ways It’s provides great opportunities...and it pays well...and people still have time to enjoy life outside work

Any questions?