Implementing new financial regulation: actuaries and UK with-profits funds

One feature of the UK Financial Services Authority's (FSA) approach to regulation is the involvement of private actors in the regulatory process. This paper explores the introduction of ‘Principles and Practices of Financial Management’ (PPFM) for the management of with-profits funds of UK life insurers, and reports the experience of actuaries as private actors having a key role in implementing the FSA's PPFM framework. Actuaries reported experiencing considerable challenges in implementing the PPFM framework and, while accountability had increased, actuaries expressed scepticism about the ability of consumers and policyholders to make use of the increased amount of publicly available information.