Objectivity requires the actuary2 to perform his duties in such a manner that he can have an honest belief in his work and does not compromise the quality of his work or his judgment. An actuary2 should not allow himself to be placed in situations where he feels unable to make objective professional judgments.22
If the actuary2 is an employee of the firm, the ordinary incentives of employment, including profit-related pay, share options or other financial interests in the firm or any associate, give rise to a conflict of interest only where they are disproportionate, or exceptional, relative to those of other employees of equivalent seniority.2
Actuaries appointed under this chapter made by the Treasury under sections 342(5) and 343(5) of the Act (Information given by auditor or actuary to the Authority). Section 343 and the regulations also apply to an actuary of an authorised person in his capacity as an actuary of a person with close links with the authorised person.4
These regulations oblige actuaries to report certain matters to the FSA. Sections 342(3) and 343(3) of the Act provide that an actuary does not contravene any duty by giving information or expressing an opinion to the FSA, if he is acting in good faith and he reasonably believes that the information or opinion is relevant to any functions of the FSA. These provisions continue to have effect after the end of the actuary's term of appointment.
In relation to Lloyd's, an effect of the insurance market direction set out at SUP 3.1.13 D is that sections 342(5) and 343(5) of the Act (Information given by auditor or actuary to the FSA) apply also to actuaries who are appointed to evaluate the long-term insurance business of a syndicate.4
of any matter connected with the cessation which he thinks ought to be drawn to the FSA's attention; or
that there is no such matter.
When an actuary appointed under SUP 4.3.1 R2 ceases to hold office, he ceases to perform a controlled function2. A firm is therefore required under SUP 10.13.6 R to tell the FSA within seven business days of its actuary2 ceasing to hold office and to complete a withdrawal form (Form C, SUP 10 Annex 6 R). Note also the requirement of SUP 10.13.7 R in relation to qualified withdrawals.222