For immediate release: Thursday 18 March 2005

IMA’s RESPONSE TO SIR DEREK MORRIS’
FINAL REPORT ON THE ACTUARIAL PROFESSION

IMA welcomes the outcome of Sir Derek Morris’ report into the actuarial profession in the UK.

In its response to the interim report, IMA highlighted three areas which needed to be addressed - competition, market testing and scrutiny.

The Review concludes that while there is reasonable choice and competition in the actuarial market, there is inadequate market testing and scrutiny of the advice provided. IMA welcomes the proposal that pension fund trustees should tender separately for actuarial advice, strategic investment and fund manager selection advice. IMA also supports the best-practice proposal that trustees should regularly evaluate their actuarial advisor both informally and formally.

Richard Saunders, Chief Executive of the IMA commented:

“The Morris Review has addressed some important issues for members of pension schemes and those who look after their investments, and provides a range of workable solutions. Improved scrutiny and market testing of actuarial service providers will help to ensure that funds receive a competitive and high quality service, particularly for the key decisions that trustees have to make with respect to strategic asset allocation.”

-Ends-

For further information, please contact:
Helen Stephenson, Communications Officer, IMA  020 7831 0898

Out of hours contact:
Mona Patel, Head of Communications, IMA   07834 089332