Faculty of Actuaries

The Faculty of Actuaries in Scotland is the professional body representing actuaries in Scotland. The Faculty of Actuaries is one of two actuarial bodies in the UK, the other is the Institute of Actuaries, which is a separate body in England, Wales and Northern Ireland. While the Faculty of Actuaries and the Institute of Actuaries are separate institutions, they work very closely together, and the professional qualifications and professional standards for actuaries are identical in each of them.

Establishment of the Faculty of Actuaries

The Faculty of Actuaries was founded by 38 Scottish actuaries on the 4th of January 1856 with the aim of representing the interests of actuaries practicing in Scotland.

In September 1868, the Faculty of Actuaries became the first actuarial organisation to be granted a royal charter. The Royal Charter confirmed the Faculty's role and the right to confer qualifications, i.e. the Fellow of the Faculty of Actuaries (FFA). Since then there has been an underpinning concept of professional behaviour and the implicit right, or even duty, to discipline members who did not conduct themselves appropriately.

On 17th March 2008 a requisition for a Special General Meeting (SGM) was handed in to the Faculty of Actuaries. This requisition was signed by four past presidents of the Faculty and three professors of Heriot-Watt University. The requisition requested that four resolutions be placed before the SGM, including directing Faculty Council to arrange detailed consultation on all three main options outlined by the Faculty Task Force in its Report and to replace the proposed in-principle vote with a vote based on each of the three options in the Report of the Faculty Task Force, with the option receiving most votes to be taken forward by Council. The SGM was held on 16th April 2008 and 137 eligible voters were present. The voting on each resolution was as follows:

* Resolution 1: 61% for, 38% against, 1% abstained.
* Resolution 2: withdrawn as having already been complied with.
* Resolution 3: 58% for, 42% against, 1% abstained (possible rounding error).
* Resolution 4: 53% for, 47% against.

The Faculty's slogan is "Making financial sense of the future."

Examinations

Qualification through the Faculty consists of a combination of examinations and courses. The examinations can only be taken upon having officially joined the body, unlike many other countries where exams may be taken earlier; although a candidate may offer proof of having previously covered topics (usually while at University) in order to be exempt from taking certain subjects.

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 Faculty of Actuaries Bookshop, [http://wam.actuaries.org.uk/wam/Sales/template.htm The Official Actuarial Bookshop] ] or through the Actuarial Education Company (ActEd) Acted [http://www.acted.co.uk/ The Actuarial Education Company] ] , a subsidiary of BPP Actuarial Education Ltd.

In addition to examinations and courses, it is required that the candidate both complete at least three years work as an actuary and be at least 23 years of age, for one to qualify as a “Fellow of the Faculty of Actuaries” (FFA) Becoming a student, [http://www.actuaries.org.uk/Display_Page.cgi?url=/students/become_student.html Actuarial Profession, Faculty and Institute of Actuaries, 2006-06-11] ]

Core examinations

The Core Technical section consists of the 8 exams and a “Business Awareness Module,” CT9. These are usually first sat 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. While these are the first exams, candidates coming from a less mathematical background often find these more difficult than the later ones due to the mathematical theory content. Topics covered include annuities, stochastic modelling, time series, and triangles.

The Core Applications section consists of two exams and a modeling course, CA2, that focus on the application of concepts learned, especially to insurance companies. This includes the communications model, CA3, which tests the candidate on their ability to communicate complex actuarial concepts to others.

pecialist examinations

The Specialist Technical section represents the first time the candidate has a choice of which exams to take. The candidate chooses 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.

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 are relaxed, this examination may be taken before taking some earlier examinations resulting in candidates qualifying on other papers.

List of Examinations

Core Technical Stage

* CT1 - Financial Mathematics
* CT2 - Finance and Financial Reporting
* CT3 - Probability and Mathematical Statistics
* CT4 - Models
* CT5 - Contingencies
* CT6 - Statistical Methods
* CT7 - Economics
* CT8 - Financial Economics
* CT9 - Business Awareness Module

Core Applications Stage

* CA1 - Core Applications Concepts
* CA2 - Modelling
* CA3 - Communications

pecialist Technical Stage

* ST0 - Alternative Specialist Technical
* ST1 - Health and Care Specialist Technical
* ST2 - Life Insurance Specialist Technical
* ST3 - General Insurance Specialist Technical
* ST4 - Pensions and other Benefits Specialist Technical
* ST5 - Finance and Investment Specialist Technical A
* ST6 - Finance and Investment Specialist Technical B

pecialist Applications Stage

* SA0 - Research Dissertation Specialist Applications
* SA1 - Health and Care Specialist Applications
* SA2 - Life Insurance Specialist Applications
* SA3 - General Insurance Specialist Applications
* SA4 - Pensions and other Benefits Specialist Applications
* SA5 - Finance Specialist Applications
* SA6 - Investment Specialist Applications

UK Practice Modules

"for students working in the UK only"

* P0 - Generic UK Practice Half Module
* P1 - Health and Care
* P2 - Life Insurance
* P3 - General Insurance
* P4 - Pensions
* P5 - Finance
* P6 - Investment

Exemptions from Examinations

A student may choose to complete an accredited actuarial science degree 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 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 Faculty and/or Institute 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 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 Faculty of Actuaries to qualify as an actuary and become a Fellow of the Faculty of Actuaries(FFA).

Universities offering accredited actuarial courses include:

* AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIA

* BULAWAYO NATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY, ZIMBABWE

* DUBLIN CITY UNIVERSITY, IRELAND

* CASS BUSINESS SCHOOL, ENGLAND

* CITY UNIVERSITY, ENGLAND

* HERIOT-WATT UNIVERSITY (EDINBURGH), SCOTLAND

* IMPERIAL COLLEGE (LONDON) TANAKA BUSINESS SCHOOL, ENGLAND

* LONDON SCHOOL OF ECONOMICS, ENGLAND

* MACQUARIE UNIVERSITY (SYDNEY), AUSTRALIA

* NANYANG TECHNOLOGICAL UNIVERSITY, SINGAPORE

* NORTH WEST UNIVERSITY (POTCHEFSTROOM), SOUTH AFRICA

* STELLENBOSCH UNIVERSITY, SOUTH AFRICA

* SWANSEA UNIVERSITY, WALES

* UNIVERSITY OF CAPE TOWN, SOUTH AFRICA

* UNIVERSITY COLLEGE CORK, IRELAND

* UNIVERSITY COLLEGE DUBLIN, IRELAND

* UNIVERSITY OF KENT AT CANTERBURY, ENGLAND

* UNIVERSITY OF KWAZULU-NATAL, SOUTH AFRICA

* UNIVERSITY OF LEICESTER, ENGLAND

* UNIVERSITY OF MELBOURNE, AUSTRALIA

* UNIVERSITY OF NEW SOUTH WALES (SYDNEY), AUSTRALIA

* UNIVERSITY OF PRETORIA, SOUTH AFRICA

* UNIVERSITY OF SOUTHAMPTON, ENGLAND

* UNIVERSITY OF THE FREE STATE (BLOEMFONTEIN), SOUTH AFRICA

* UNIVERSITY OF THE WITWATERSRAND (JOHANNESBURG), SOUTH AFRICA

Other qualifications recognised by the Faculty of Actuaries for exemption from certain examinations include:

* ACCA Qualification
* Chartered Financial Analyst (formerly membership of the Association for Investment Management and Research)
* Fellowship of the Chartered Insurance Institute
* Fellowship of the Chartered Institute of Management Accountants
* Fellowship of the Institute of Chartered Accountants in England and Wales
* Fellowship of the Institute of Chartered Accountants in Scotland
* MBA

Membership Categories

In total there are approximately 2500 members of the Faculty of Actuaries falling into the following categories. Membership data, [http://www.actuaries.org.uk/Display_Page.cgi?url=/maintained/about_the_profession/statistics.html Actuarial Profession, Faculty and Institute of Actuaries] ]

* Student actuaries are members of the Institute who are taking exams;

* Associates are members who have completed both the CT and CA subjects and have completed one year's worth of relevant work-based skills experience;

* Affiliates are members of the Faculty of Actuaries who are kept up-to-date with the developments within the Actuarial Profession through publications and affiliates are able to participate in meetings, research and conferences;

* Fellows are full members of the Institute who have met the training demands by both completing all the examinations and meeting the work experience requirements. Fellows have the right to call themselves 'Actuaries'. There are about 1300 fellows of the Faculty of Actuaries.

* Honorary Fellows are voted on by the Council as whom they feel appears to be able to render assistance in promoting the objects of the Faculty and who is not professionally engaged in practice as an actuary.

Presidents of the Faculty of Actuaries

* 1887-1890 JOHN MACGREGOR M’CANDLISH
* 1890-1892 SPENCER CAMPBELL THOMSON, BA
* 1892-1894 ANDREW HUGH TURNBULL
* 1894-1896 THOMAS BOND SPRAGUE, MA LLD
* 1896-1898 JAMES MEIKLE
* 1898-1900 DAVID DEUCHAR
* 1900-1903 GEORGE MACRITCHIE LOW
* 1903-1906 NEIL BALLINGAL GUNN
* 1906-1908 ARCHIBALD HEWAT
* 1908-1910 JAMES JOHN M’LAUGHLAN
* 1910-1913 GORDON DOUGLAS
* 1913-1915 WILLIAM HUTTON
* 1915-1919 GEORGE MACRITCHIE LOW
* 1919-1921 ALFRED ERNEST SPRAGUE, MA DSc
* 1921-1922 LEWIS POTTER ORR, FRSE
* 1922-1924 WILLIAM GANDY WALTON
* 1924-1926 GEORGE JAMES LIDSTONE, LLD FRSE
* 1926-1928 RALPH HILL STEWART
* 1928-1930 CHARLES GUTHRIE
* 1930-1932 STEUART MACNAGHTEN, ACA
* 1932-1934 RANDOLPH GORDON-SMITH
* 1934-1936 HUGH WYLIE BROWN, FRSE
* 1936-1938 ALEXANDER GRAHAM DONALD, MA FRSE
* 1938-1940 WILLIAM ALEXANDER ROBERTSON, FRSE
* 1940-1942 WILLIAM BANNATYNE
* 1942-1944 FINLAY JAMES CAMERON, FRSE
* 1944-1946 JAMES GRAY KYD, CBE FRSE
* 1946-1948 COLIN STRATHERN PENN, MC
* 1948-1950 ANDREW RUTHERFORD DAVIDSON, FSS
* 1950-1952 JOHN MUIRHEAD ROSS, FRSE
* 1952-1954 RICHARD LLOYD GWILT, CBE FRSE
* 1954-1956 KENNETH KILPATRICK WEATHERHEAD, MA
* 1956-1958 FRANCIS JOSEPH McGREGOR, MA
* 1958-1960 ALEXANDER ROBERT REID, MA
* 1960-1962 DAVID ALISON BROWN SCRIMGEOUR
* 1962-1964 ALFRED TREVOR HAYNES, CBE
* 1964-1966 JOHN LESLIE ANDERSON, MA
* 1966-1968 JAMES BREMNER DOW, MA
* 1968-1969 ARTHUR ERNEST BROMFIELD, MA
* 1969-1971 DAVID WILLIAM ALEXANDER DONALD, OBE TD
* 1971-1973 JOHN YOUNG
* 1973-1975 JOHN GALLOWAY WALLACE, OBE MA
* 1975-1977 MAXWELL DOUGLAS THORNTON
* 1977-1979 ROBERT EADIE MACDONALD, MA
* 1979-1981 DAVID DOUGLAS McKINNON, BSc FIMA
* 1981-1983 GEORGE DAVID GWILT, MA
* 1983-1985 ALEXANDER DENIS SHEDDEN, BSc FSA
* 1985-1987 JOHN MAITLAND MACHARG, MA
* 1987-1989 WILLIAM MORRISON MORRISON, MA
* 1989-1990 JAMES McGILL SOUNESS
* 1990-1992 ALISTAIR NEILL, MA MS FPMI FCII
* 1992-1994 JOHN JOSEPH McCUTCHEON, CBE MA PhD DSc FRSE
* 1994-1996 GEORGE MALCOLM MURRAY, CBE
* 1996-1998 PAUL HENRY GRACE, BSc
* 1998-2000 CUTHBERT WHYTE FRASER LOW, FPMI
* 2000-2002 THOMAS DAVID KINGSTON, MA
* 2002-2004 THOMAS MACKENZIE ROSS, OBE BSc FCIA ASA
* 2004-2006 HARVIE WALKER BROWN, BSc FPMI
* 2006-2008 STEWART RITCHIE, OBE

Notes and references

External links

* [http://www.actuaries.org.uk/Display_Page.cgi?url=/profession/fac_intro.xml Official Webpage of the Faculty of Actuaries]

* [http://www.actuaries.org.uk Official Site of the Faculty of Actuaries and the Institute of Actuaries ]

* [http://www.acted.co.uk/ The Actuarial Education Company ACTED]

* [http://www.actuaries.org.uk/Display_Page.cgi?url=/contact/travelinfo_mh.xml Details of Maclaurin House the faculty's headquarters in Edinburgh]