13 Professional Standards and Guidance

Question 1

List the four high level components of the new TAS framework effective from 1/7/2017. (4)

Answer 1

1. A Framework Document.
2. A Generic TAS
3. Three Specific TASs
4. A Glossary of Terms used in the TASs.

Question 2

State the FRC’s Reliability Objective. (6)

Answer 2

Users for whom actuarial information is created should be able to place a high degree of reliance on its:
- relevance
- transparency of assumptions
- completeness and
- comprehensibility
including the communication of any uncertainty inherent in the information.

Question 3

List the two new frameworks TASs that are of most relevance to SA2. (2)

Answer 3

TAS 100: Principles for Actuarial Work

TAS 200: Insurance

Question 4

List the six areas covered by the high level principles in TAS 100. (6)

Answer 4

1. Judgement
2. Data
3. Assumptions
4. Models
5. Communications
6. Documentation

Question 5

State the purpose of TAS200: Insurance. (3)

Answer 5

To promote high quality actuarial work…
…on particular insurance matters where …
…the FRC has identified that there is a high degree of risk to the public interest.

Question 6

List seven examples of life insurance work that are within the scope of TAS200: Insurance. (7)

Answer 6

1. Prudential regulatory balance sheets
2. Financial statements
3. Prudential regulatory capital requirements and ORSA
4. Insurance transformations, eg. Part VII transfers
5. Audit and assurance
6. Product pricing
7. Exercise of discretion concerning with-profits business

Question 7

List the other current professional standards of most relevance to SA2. (5)

Answer 7

APS L1: Duties and responsibilities of life assurance actuaries

APS L2: The FSMA2000 (communications by actuaries) regulations 2003

APS X1: Applying standards to actuarial work

APS X2: Review of Actuarial Work

APS X3: The Actuary as an Expert in Legal Proceedings