The Financial Services Authority (FSA) has issued a decision approving rules for actuarial firms, as are embodied in the "Regulation for Actuarial Services Firms".
In a statement, the FSA said that the regulation establishes a clear professional framework for practising this specialised activity and reinforces standards of quality and efficiency in the provision of actuarial services to insurance and takaful companies.
The decision also grants a one-year grace period for existing actuarial firms to comply with the regulation, ensuring an orderly transition towards the full implementation of the new regulatory framework governing supporting services for the insurance sector.
The issuance of the regulation is based on the provisions of the “Executive Regulation of the Insurance Companies Law”, which requires insurance companies to appoint an actuary or contract with an actuarial office approved by the FSA, ensuring that actuarial studies and reports are issued by qualified entities that meet approved professional requirements.
The regulation sets out several requirements, most notably that all founders or owners of an actuarial firm, as well as at least one actuary, must hold a fellowship qualification in actuarial science from one of the entities specified in the regulation or from a recognised international actuarial institute, subject to the approval of the FSA.
The regulation also grants the FSA supervisory and oversight powers over approved actuarial firms, including inspections and the imposition of administrative penalties in the event of violations of its provisions. This enhances professional compliance and raises the level of discipline within the market.