28 June 2004

Morris Review - consultation document published

Sir Derek Morris today published a consultation document seeking views from all interested parties on his review of the actuarial profession.

Issues which Sir Derek intends to focus on include:

the role of the appointed actuary
standard setting and monitoring
audit, peer review and scrutiny
disciplinary procedures
the role of the Government Actuary’s Department

Sir Derek Morris said:

“I hope that all interested parties will feed in their views on all aspects of the Review, and I look forward to discussing the issues with members of the actuarial profession, their customers and other interested parties.”

The closing date for responses to the consultation is 10 September 2004. Sir Derek Morris will publish an interim assessment in the autumn and will submit the final report, with recommendations for change, to the Government in Spring 2005.

Notes for editors

1. In March 2004, following Lord Penrose’s Inquiry into Equitable Life, the Government asked Sir Derek Morris, to conduct a wide-ranging review of the actuarial profession.

2. Lord Penrose identified a number of issues concerning the actuarial profession in his report, including;

a lack of generally agreed professional standards;
an over-reliance on the role of the appointed actuary;
a lack of scrutiny and audit of actuarial calculations;
reactive disciplinary procedures;
a reluctance to challenge fellow actuarial professionals.

3. The Review’s full terms of reference are to:-

“Consider what professional and/or regulatory framework would best promote recognised, high-quality and continuously developing actuarial standards, openness in the application of actuarial skills, transparency in the professional conduct of actuaries, accountability for their actions and an open and competitive market for actuarial advice in the UK.”

In doing so:

Take into account developments in the actuarial profession, in regulation, and in the financial services market, in the UK and abroad;
Examine the roles of actuaries in the financial services sector, including in providing actuarial opinions in relation to audited accounts;
Build on the work of recent government and regulatory initiatives;
Examine the relationship between the Government Actuary’s Department and the actuarial profession and with other parts of government.
Recommend a framework that will be independent in representing the public and consumer interest, and be accountable, flexible, transparent, and no more burdensome or restrictive than is clearly justified.
Make recommendations on the future role of the Government Actuary, the functions of his Department and its future institutional status.

The Review will deliver a final report with recommendations by spring 2005.

4. Although the Review was announced by the Government in response to Lord Penrose’s Inquiry into Equitable Life, the Review’s terms of reference are broad and include the role of actuaries working outside of the life insurance industry, for example, in industries such as pensions management, general insurance and fund management.

5. Sir Derek Morris is currently Provost at Oriel College, Oxford. From 1998 until April 2004, he was the Chairman of the Competition Commission. He commenced work on the review on 1 May 2004. From 1970 to 1998 he was the fellow and tutor in economics, Oriel College, Oxford, and a Lecturer in Economics, Oxford University. From 1981 to 1984 he was Economic Director at the National Economic Development Office (NEDO); and from 1984 until 1998 was Chairman of Oxford Economic Forecasting Ltd.

6. The pdf file of the consultation document can be downloaded from the review’s website . Hard copies can be requested from the HM Treasury correspondence unit by e-mail: enquiries@hm-treasury.gov.uk or on tel: (020) 7270 4558.

Responses to the consultation should be sent by email to: morris.review@hm-treasury.x.gsi.gov.uk

or to

The Morris Review
Room GC/08
1 Horse Guards Road
London
SW1A 2HQ

Tel: (020) 7270 5961
Fax: (020) 7451 7670

All written responses will be made public on the Review’s website unless the author specifically requests otherwise.

7. Media enquiries should be directed to Simon Moyse, the Review’s press officer, on (020) 7270 4420.