The SPP state that revisions to TAS 300 have “generally been drafted in a way that is sympathetic to the challenges practitioners are facing with the ever-growing responsibilities and complexity of their advice” but go on to explain that “some of the new provisions introduce additional prescription that would best be avoided.”
Such prescription includes disclosing the “level of prudence” which runs the risk of actuaries then feeling the need to quantify prudence when justifying it.
There are also some areas that the SPP believes will add materially to the advice required and are unnecessary in their current form such as the proposed provision relating to the uncertainty of future cashflows.
Chris Ramsey, Chair of SPP’s DB Committee said: “As our response sets out, the SPP believe the FRC have done a good job in dealing with what is an increasingly complex area. However, there are some improvements that could be made, both for clarity and to reduce the amount of work needed that wouldn’t add material value to the advice. If these changes are made, the new Technical Actuarial Standard for pensions is likely to provide strong support for practitioners carrying out actuarial work under the new DB funding regime.”
The SPP consultation response can be read in full here:
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