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Queen’s University Belfast
15 October 2008Georgina WarrenSecretary to the Education Committee
The Actuarial Profession
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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
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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
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Where do actuaries work?
• Consultancies• Insurance companies• Investment and retail banks• Government/Civil Service• Capital Projects
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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
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Professional qualification
• The Faculty and Institute of Actuaries are the UK professional bodies for actuaries
• On average it takes 3-6 years to qualify
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Professional qualification
• Once qualified, members become Associates or Fellows of either the Faculty of Actuaries (AFA/FFA) or the Institute of Actuaries (AIA/FIA)
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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
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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
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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
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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
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Internationally recognised qualification
• Our qualifications are recognised throughout the world
• Actuaries work around the world
• Opportunities for secondments overseas, even at trainee level
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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
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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+
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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
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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
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The Examination System
CoreTechnicalCT1-CT9
ST1 ST2
ST3
ST4ST5
ST6
SA6
SA1SA2
SA5
SA4
SA3
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The Examination SystemComponents
– 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
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Intermediate qualifications
• Diploma in Actuarial TechniquesAll Core Technical and Business Awareness
• Certificate in Finance & InvestmentCT1, CT2, CT4, CT7, CT8, CA1 + Business Awareness
• AssociateAll Core Technical + Core ApplicationsBusiness AwarenessAssociate ProfessionalismWork-based skills
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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
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Exemptions
Non-Accredited Universities
– No formal agreement in place
– Need to submit details of courses studied and grades
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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
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Professionalism
• characteristics of a profession
• controls over the Profession
• the Professional Conduct Standard
• the Disciplinary Scheme
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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
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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
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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
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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
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Regulation of the UK ProfessionFinancial Reporting Council
Professional Oversight Board
CouncilsFaculty and Institute
Board for Actuarial StandardsAccountancy and
Actuarial Disciplinary Board
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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
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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 …
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Disciplinary Scheme can result in
Reprimand Retraining Fine Withdrawal of Practise Certificate Suspension from membership Expulsion
Some recent cases …
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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
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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
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Any questions?