The Financial Reporting Council (FRC) has today published version 2.0 of Technical Actuarial Standard 100 (TAS 100) and its associated guidance. The new version of the Standard includes revisions to ensure that it reflects current practices in actuarial work and addresses known gaps in the quality of actuarial work.
The revised standard includes a new requirement that actuarial practitioners must consider all relevant material risks, including climate change and ESG-related risks, which they might reasonably be expected to know about at the time of carrying out their work.
In addition, the revised standard introduces a new Application section that sets out the FRC’s expectations and allows practitioners to have a better understanding of how to interpret and comply with the principles. The aim of this section is to narrow the range of interpretations and practices in the application of TAS 100, thereby promoting consistency in actuarial work.
FRC’s executive director of regulatory standards, Mark Babington said: “The revisions to TAS 100 reflect the FRC’s commitment to promoting high-quality actuarial work. The new Standard will ensure important risks such as climate change and ESG-related risks are considered in the course of the actuaries’ work and will help to ensure that work remains fit for purpose within the rapidly changing environment in which actuaries operate.”
This move to prioritising ESG-related risks and climate change follows through with current industry trends, which have seen these fields come to the forefront of what both industry leads and would-be clients seek to prioritise when looking for professional services.
According to a report issued by IFAC and AICPA & CIMA, the largest global companies continue to show momentum on corporate reporting and related assurance involving ESG issues. According to the report, however, significant hurdles remain when it comes to providing consistent, comparable, and high-quality sustainability information for investors and lenders.