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SUP 4.5 Provisions applicable to 2all 2actuaries

Objectivity

SUP 4.5.1R

An actuary2 appointed under PRA rules made under section 340 of the Act, or for the purposes of PRA Rulebook: Solvency II firms: Conditions Governing Business, 6,6 must be objective in performing his duties.

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SUP 4.5.2G

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.

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SUP 4.5.3R

An actuary appointed under firms PRA rules made under section 340 of the Act, or for the purposes of PRA Rulebook: Solvency II firms: Conditions Governing Business, 6,6 must take reasonable steps to satisfy himself that he is free from bias, or from any conflict of interest from which bias may reasonably be inferred. He must take appropriate action where this is not the case.

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SUP 4.5.4G

The appropriate action may include asking the firm's governing body to re-assign temporarily some or all of his duties to another competent actuary. Where this is insufficient, the actuary2 should resign his office.

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SUP 4.5.5G

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.

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SUP 4.5.6G

The guidance and professional conduct standards in current issue from the Institute of Actuaries and the Faculty of Actuaries are relevant to compliance with SUP 4.5.1 R and SUP 4.5.3 R.

2Actuaries' statutory duty to report2

SUP 4.5.7G
  1. (1)

    Actuaries appointed under PRA rules made under section 340 of the Act, or for the purposes of PRA Rulebook: Solvency II firms: Conditions Governing Business, 6,6 are subject to regulations5 made by the Treasury under sections 342(5) and 343(5) of the Act (Information given by auditor or actuary to a regulator7). 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

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  2. (2)

    These regulations oblige actuaries to report certain matters to the appropriate regulator.7 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 appropriate regulator,7 if he is acting in good faith and he reasonably believes that the information or opinion is relevant to any functions of the appropriate regulator.7 These provisions continue to have effect after the end of the actuary's term of appointment.

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Termination of term of office

SUP 4.5.8G

SUP 4.5.9 R to SUP 4.5.11 G apply to a person who is or has been an actuary appointed under PRA rules made under section 340 of the Act, or for the purposes of PRA Rulebook: Solvency II firms: Conditions Governing Business, 66.

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SUP 4.5.9R

An actuary appointed under PRA rules made under section 340 of the Act, or for the purposes of PRA Rulebook: Solvency II firms: Conditions Governing Business, 66 must notify the appropriate regulator5 without delay if he:

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  1. (1)

    is removed from office by a firm; or

  2. (2)

    resigns before his term of office expires; or

  3. (3)

    is not reappointed by a firm.

SUP 4.5.10R

An actuary2 who has ceased to be appointed under PRA rules made under section 340 of the Act, or for the purposes of PRA Rulebook: Solvency II firms: Conditions Governing Business, 66 or who has been formally notified that he will cease to be so 2appointed, must notify the appropriate regulator5 without delay:

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  1. (1)

    of any matter connected with the cessation which he thinks ought to be drawn to the appropriate regulator's attention; or

  2. (2)

    that there is no such matter.

Rights and duties2

SUP 4.5.12G

2Section 341 of the Act (Access to books etc.) provides that an actuary appointed under or as a result of the Act:

  1. (1)

    has a right of access at all times to the firm's books, accounts and vouchers; and

  2. (2)

    is entitled to require from the firm's officers such information and explanation as he reasonably considers necessary to perform his duties as actuary.

SUP 4.5.13R

2When carrying out his duties, an actuary appointed under PRA rules made under section 340 of the Act, or for the purposes of PRA Rulebook: Solvency II firms: Conditions Governing Business, 6,6 must pay due regard to generally accepted actuarial practice.3

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SUP 4.5.14G

2The standards, codes5 and guidance issued from time to time by the Institute and5 Faculty of Actuaries and the Financial Reporting Council5 are important sources of generally accepted actuarial practice.3

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