Further to last year’s consultation, the PRA has now introduced measures that may lead to financial penalties on actuaries that fail to observe PRA rules or the requirement to 'whistleblow' under FSMA.
"Perhaps the most pertinent comment from the PRA is that any penalty should be seen as a deterrent"
The disciplinary powers apply to actuaries acting for an authorised person (as defined in FSMA – essentially an authorised firm) and appointed under, or as a result of, a statutory provision. This includes Chief Actuaries, Actuarial Function Holders, Appropriate Actuaries and With Profit Actuaries.
While the PRA documents set out a framework for the calculation of financial penalties, listing considerations that would be taken into account, the scale of penalty is by no means clear. Perhaps the most pertinent comment from the PRA is that any penalty should be seen as a deterrent.
Although the FCA already has similar disciplinary powers, the PRA rule coverage significantly widens the scope. Given much of the PRA Rulebook has been re-written in recent times, it may be a good time for many of us to 'refresh' and remind ourselves of the requirements . . . or ask our bosses for a rise . . . and let’s hope that none of us ever get to find out just how big the financial penalties might be!