Professionalism, ethics and the regulatory environment
Domain 1 tests whether you can place technical work inside the UK professional and regulatory framework: the Actuaries' Code, the FRC's Technical Actuarial Standards (TAS), and the PRA/FCA split of prudential and conduct regulation.
Core rules
- The Actuaries' Code is principles-based: Integrity, Competence and Care, Impartiality, Communication and Compliance. It applies to all members, not only those in reserved roles.
- TAS 100 sets principles for all technical actuarial work; TAS 200 (insurance), TAS 300 (pensions) and TAS 400 (funeral plans) add sector requirements. They are proportionate and require judgement to be documented and reported.
- Reserved roles (Scheme Actuary, With-Profits Actuary, Lloyd's Actuary, actuarial function holder) carry specific legal duties. SM&CR makes senior individuals personally accountable.
- Conflicts of interest, whistleblowing, CPD and the disciplinary scheme turn principles into day-to-day practice.
Worked example
A trustee board asks a consultant to advise on a buy-in; the employer separately asks the same firm to advise on the same transaction. Reasoning: there are two clients with potentially opposing interests (price, security, covenant). The Code's Impartiality and Integrity principles require the firm to identify the conflict, disclose it to both parties, and manage it (separate teams, information barriers, written consent) or decline if management is insufficient. The actuary should also consider whether advice to one party can be given without using confidential information belonging to the other.
Traps
Confusing the FRC (standard-setter) with the PRA and FCA (regulators); treating the Code as a checklist; ignoring that TAS attach to the work, not the job title; assuming a conflict is cured by disclosure alone.