Following the Morris review of the UK actuarial profession (2005), the Financial Reporting Council (“the FRC”) became responsible for the technical actuarial standards (“TASs”), professional matters remaining controlled by the profession. A new TAS regime was implemented from July 2017, being about the delivery of appropriate advice as opposed to being about regulations. Two points are particularly interesting.
First, definition [3.2] of the Framework Reliability Objective requires transparency of assumptions together with the communication of any inherent uncertainty.
Secondly, TAS 300 (pensions) requires that actuarial communications shall explain comparisons between the discount rates used (or proposed) against the expected assets return according to the stated strategy.
How can scalar assumptions or results comply with the above?