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The Institute and Faculty of Actuaries is the professional body which represents the actuaries in the United Kingdom It operates publicly under the name Actuarial Profession.
History
The Institute and Faculty of Actuaries came into being on 1 August 2010 as a result of the merger of the Institute of Actuariesand the Faculty of Actuaries in Scotland after voting members of both bodies voted to merge their respective organisations in a ballot held on 25 May 2010.
Structure and governance
The Quees in Council granted an amendment effective 1 August 2010 to the Charter of the Institute of Actuaries in terms that converted it to the Charter for the Institute and Faculty of Actuaries. The assets, liabilities and membership rights of the Faculty of Actuaries in Scotland were transferred on this same day to the Institute and Faculty of Actuaries and the Charter of the Faculty of Actuaries in Scotland was surrendered. Essential elements of the merger arrangements, such as the Scottish constituency and its representation on the Council of the Institute and Faculty of Actuaries, are incorporated into the new governance documents.
Authority for the governance, control and strategic direction of the Institute and Faculty of Actuaries sits with the Council which will in turn delegate to various boards, committees and staff.
President
The Presidentof the Institute and Faculty of Actuaries is Ronnie Bowie, a senior partner with Hymans Robertson and a Fellow of the Faculty of Actuaries since 1980.
Research and member support
Actuaries work in a number of different practice areas: enterprise risk management, finance and investment, general insurance, health and care, life insurance and pensions.
Each of these areas is supported by an executive committee which oversees the development of knowledge and research within its own area, provides members with CPD opportunities and takes forward a programme of practice-specific research. The committees also foster a sense of community among actuaries practising in their particular field of expertise.
Education and regulation
The Institute and Faculty of Actuaries sets examinations, continuing professional development, professional codes and disciplinary standards. The Financial Reporting council(FRC) assumed responsibility for oversight of the actuarial profession and the independent setting of actuarial technical standards with effect from May 2006.
Fully qualified actuaries are Fellows and may bear the designations FIA or FFA while Associates bear the designations AIA or AFA.
Practicing certificates are issued to certain actuaries for their statutory role in the financial management of life offices and most pension schemes. The Institute and Faculty of Actuaries continues the former Institute’s role as a designated professional body, under the Financial Services and Markets Act 2000 which enables it to license firms that are managed or controlled by actuaries, allowing them to carry on certain limited regulated activities.
An actuarial qualification from the Institute and Faculty of Actuaries consists of a combination of the completion of various examinations and courses. The examinations are split into four sections: core technical, core applications, specialist technical, and specialist applications. In addition to examinations and courses, it is required that the candidate both complete at least three years work as an actuary and to qualify as a Fellow.
Examinations
An actuarial qualification from the Institute and Faculty of Actuaries consists of a combination of the completion of various examinations and courses. The examinations are split into four sections: Core Technical (CT), Core Applications (CA), Specialist Technical (ST), and Specialist Applications (SA). Study material for the examinations is usually obtained through the official bookshop of the Institute of Actuaries or through the Actuarial Education Company (ActEd), a subsidiary of BPP Actuarial Education Ltd.
In addition to examinations and courses, it is required that the candidate complete at least three years work as an actuary to qualify as a “Fellow of the Institute and Faculty of Actuaries” (FIA)
Core Examinations
The Core Technical section consists of 8 written exams and a “Business Awareness Module,” CT9. These are usually sat first by a candidate and include the underlying mathematics involved in actuarial work as well as an introduction to financial and economic issues. These are also the most common exams for which candidates may get exemptions.
The Core Applications section consists of a 6 hour written exam and two practical exams which focus on the application of concepts learned and a candidate's ability to communicate actuarial concepts to others.
Specialist Examinations
The Specialist Technical section is the first stage the candidate has a choice of which exams to take. The candidate choses two from the various actuarial specialist subjects i.e. Health and Care, Life Insurance, General Insurance, Pensions, Finance or Investments and further technical knowledge on said subjects is attained.
Since the 2010 examinations, the General Insurance Specialist Technical paper ST3 was replaced by two subjects ST7 and ST8
The Specialist Applications section allows the candidate to choose one area for which they take the SA paper and attain full Fellowship; leading to many referring to this as the “Fellowship paper.” However, as the rules on the ordering of examinations were relaxed, this examination may be taken before taking some earlier examinations resulting in candidates qualifying on other papers.
List of Examinations
Core Technical Stage
Core Applications Stage
Specialist Technical Stage
Specialist Applications Stage
UK Practice Modules
For students working in the UK only
University-based examinations
A student may choose to complete an accredited actuarial sciencedegree at an undergraduate or at a postgraduate level through a number of recognised universities. Successful students may offer proof of having covered the topics whilst at university and students may be granted exemptions from certain professional examinations from the Institute and Faculty of Actuaries.
Depending on the University, a different number of courses may be recognised for exemption. The examinations and the exemption pass level for the examinations is usually externalised by members of the Institute and Faculty of Actuaries.
Naturally, the quality of the courses and lecturing at these universities are a determinant as to whether the course is recognised by the Institute and Faculty of Actuaries.
Most universities offering actuarial science courses also require the student in addition to complete various other related topics, including statistics, mathematics, applied mathematics, economics and accounting for recognition of an actuarial degree.
Upon completion of the university degree, students would then complete all remaining examinations through the Institute and Faculty of Actuaries to qualify as an actuary and become a Fellow of the Institute and Faculty of Actuaries(FIA or FFA).
Qualifications
Certificate in Financial Mathematics
Any candidate worldwide can take the CT1 Financial Mathematics exam without being a member of the Actuarial Profession and if they pass, will receive the Certificate in Financial Mathematics
Diploma in Actuarial Techniques
The Diploma in Actuarial Techniques is sent to students on completion of all Core Technical stage subjects: CT1, CT2, CT3, CT4, CT5, CT6, CT7, CT8 and CT9
Certificate in Finance and Investment
The Certificate in Finance and Investment is sent to all students who complete or are exempted from CT1, CT2, CT4, CT7, CT8, CT9 and CA1
Associate of the Institute and Faculty of Actuaries
On completion of all of the Core Technical and Core Applications exams, then students can become Associate members of the Institute and Faculty of Actuaries and gain the right to describe themselves as an actuary and to use the letters AIA or AFA provided that they have one year of work experience as an actuary
Fellow of the Institute and Faculty of Actuaries
On completion of all of the Associate exams, two of the Specialist technical subjects and one of the Specialist applications subjects, students can become Fellows of the Institute and Faculty of Actuaries and to use the letters FIA or FFA provided that they have three years of work experience as an actuary
Alternative routes to Fellowship are:
Chartered Enterprise Risk Actuary (CERA)
Associates and Fellows gain a further qualification, CERA, if they pass the ST9 Enterprise Risk Management exam
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