Faculty of Actuaries - Establishment of The Faculty of Actuaries

Establishment of The Faculty of Actuaries

The Faculty of Actuaries was founded by 38 Scottish actuaries on 4 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.

Over the last two decades the Faculty workeded closer and closer with its sister body the Institute of Actuaries and, prior to the merger of the two bodies, reached a stage where almost all aspects of both bodies were run jointly; for example whilst Maclaurin House in Edinburgh was the home of Faculty Council the main purpose of the executive in Maclaurin House is to provide professional regulation services to all members of the UK Actuarial Profession.

In November 2006 the incoming President of the Faculty announced his intention to investigate whether or not the time was now right to restructure to reflect the reality of the arrangements between the Faculty and the Institute and to move towards merger of the two bodies. After investigation and consultation of the issues Faculty Council elected to actively pursue merger with the Institute.

On 17 March 2008 a group of 10 members of the Faculty requisitioned a Special General Meeting which was duly held on 16 April 2008. Of the 137 voters;

• 61% supported a resolution to explore improved co-operation in the joint governance of the bodies and as part of this to consider annually renewable delegations

• 58% supported a resolution directing Council to arrange detailed consultation with the membership; and

• 53% suggested a resolution directing Council to cancel the proposed in principle vote and instead to put to members a range of options and to facilitate a single transferable vote.

As a result, in late 2008 both the Faculty and Institute arranged a survey of the whole membership to ascertain their view in principle on a merger between the two bodies. At the closing date on 8 August 2008 some 1,366 Faculty members voted on this in principle survey with 65% of those voting supporting merger, whilst 6,928 Institute members voted of which 84% supported a merger.

The Faculty and the Institute continues, in line with the majority vote, to continue to work up proposals for merger. However, a formal opposition group, FIDELIS — The Actuarial Defence Group, was formed in November 2008 by several members including Past Presidents and Vice-Presidents of the two bodies to oppose the merger. A formal vote on the combined merger, name change and new charter was held on 23 July 2009, when the Faculty vote passed the required threshold but the Institute vote failed.

Following extensive consulatation with members of both the Faculty and Institute of Actuaries, a revised merger proposal was put to members on 25 May 2010. Voting members of the Faculty and Institute of Actuaries voted to merge the bodies to form the Institute and Faculty of Actuaries.

After approval by the Privy Council, the Institute and Faculty of Actuaries came into being on 1 August 2010.