Commenting on the King’s Speech at the State Opening of Parliament yesterday (7 November 2023), Kalpana Shah, President at the Institute and Faculty of Actuaries (IFoA) said:
“Five years on from Sir John Kingman’s independent review of the Financial Reporting Council (FRC), we are disappointed that the Government has, once again, not committed to a clear timetable for the reform of actuarial regulation with no draft audit bill signalled in the King’s Speech. This means reforms to the FRC and actuarial regulation are now well underway without any statutory underpinning, requiring us to work in a grey area of oversight for an unspecified period, which we do not believe is in the public interest.
“Actuaries are essential to a well-functioning financial system. The work they do on a daily basis in the public interest ensures that people receive the pensions they are entitled to, that insurance products are priced accurately for customers and that companies hold sufficient capital to pay claims to their customers. The ongoing lack of regulatory clarity undermines our profession and our members’ ability to protect the financial interests of the public.
“Given the proximity to the next general election, it is unlikely that we will see any further progress in the near future. In the interim, we will continue to engage with the Government and regulators, including the FRC, on this important issue to ensure delays to legislation do not negatively impact our members and the public. We will also take some time to reflect on our position and provide a further update in due course.”
KENNEDYS
Niall Edwards, motor insurance specialist and partner at Kennedys, in response to the announcement on the Automated Vehicles Bill in yesterday’s King’s Speech.
“Whilst we welcome further detail on the Automated Vehicles Bill, which broadly follows the earlier recommendations of the Law Commission, one issue which is notable by its absence (in the briefing note but may still be in the Bill or related legislation) is how access to in-vehicle data will be ensured to key stakeholders.
“Ready access to such data is crucial, not only for insurers but also the police in determining where liability lies in the event of a crash.
“It is also essential for any body monitoring the future performance of these vehicles on the road to ensure safety, which we are pleased to see is front and centre of the Bill and quite rightly so in ensuring public confidence in this emerging technology.”
IEA COMMENTS
Commenting on the King’s Speech, Mark Littlewood, Director General of the free market think tank, the Institute of Economic Affairs, said:
“The King’s Speech was an opportunity to reset the agenda, yet has proven little more than heavy on intervention, light on liberalisation. While the government promised to ‘make long-term decisions to change this country for the better’, these announcements risk perpetuating Britain’s nit-picky overregulation, high tax, and low growth economic model.
“The new football regulator and digital markets interventions could repel investment into some of Britain’s most successful and innovative sectors. The phased smoking ban strips away personal choice while presenting an enticing business opportunity for black market sellers. The banning of so-called ‘drip pricing’ for airlines risks passengers paying more for services they do not need.
“New trade agreements, including joining CPTPP, will give consumers more choices and provide opportunities for British businesses. Expanding North Sea oil and gas licences is a welcome step towards lower energy costs, but it can only go so far. But without a fundamental shift in economic thinking, we are on the path to another lost decade of economic growth.”
MY PENSION EXPERT
Lily Megson, Policy Director at My Pension Expert said, “The exclusion of pensions from the King’s Speech is likely to leave many in the sector perplexed, prompting questions about the government’s commitment to essential pension reform. This will be unnerving for many pension planners, to say the least. “With the general election drawing nearer, the government is running out of time to tackle the pressing, long-term issues affecting pensioners and individuals saving for retirement. “Now, our hopes for much-needed pension reform will have to pivot towards the Chancellor’s Autumn Statement later this month. I certainly hope that it offers clear and decisive action to address the financial needs and expectations of pension planners.”
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