Actuaries blasted in wake of Equitable

THE actuarial profession was slated today by Sir Derek Morris, who was asked to carry out a review of it in the wake of the near-collapse of Equitable Life.

Morris accused the profession of:

? Being too insular and slow to adapt to circumstances.

? Being insufficiently transparent in actuarial advice.

? Having inadequate scrutiny, challenging and market testing of the profession by users such as pension fund trustees and the boards of insurers.

? Lacking clarity on accountability to the wider public interest.

? Having an outdated education syllabus.

? Having weak or ambiguous standards that are too influenced by commercial interests.

? Having self-regulation that is not working.

Morris recommends that a new regulatory framework should take over from the current self-regulation, with the Financial Reporting Council suggested as a potential overseer.

The Actuarial Profession said that it had begun a programme of changes even before the Morris review was announced. It also welcomed the fact that he mainly let them off the hook over blame for the recent crises in the pensions and life industries.