www.the-actuary.org.ukCommission omissionHow could our profession ignore the questions of charges and commission-driven sales when responding to the Financial Services Authority8217s review of retail distribution? The FSA8217s discussion paper sets out to achieve a fair deal from the financial services industry and clearly describes the problems in the way. Prominence is given to complex charging structures, remuneration-driven sales by so-called advisers and the fact that those giving advice can do so with little training and testing.The Profession8217s response claims to focus specifically on the potential impact on consumers. However, it makes no reference to the above issues and concentrates on the need for event-driven advice, saying that the regulated advice model centres around looking at all areas of financial need. The present set-up, it says, is a counsel of perfection often unavailable or unaffordable.These are, indeed, valid points but was there really nothing the Profession could say about the commission-led system that pushes people into high-charging products, when true independent advice would send them in a very different direction? Once clients get into the hands of an IFA or provider-salesman, they are unlikely to be pointed towards a non-commission-paying product such as National Savings, a cash ISA or an investment trust. Instead they find themselves in such things as unit trusts whose typical charges reduce the accumulated fund by 30% over a 20-year period.To conclude on a happier note, readers will find more robust submissions to both the Retail Distribution Review and the Thoresen Review on the website of the UK Shareholders8217 Association www.uksa.org.uk with positive suggestions to address these issues. At which point I must confess to having played a significant role in the drafting of those responses!Roy B. Colbran13 January 2008Image problemMay I suggest we try to reduce, or even eliminate, articles that discuss and emphasise the actuary caricature such as the 8216rotating underwear8217 debate (Letters, Jan/Feb 2008).Perhaps the magazine needs to form part of a more 8216strategic8217 effort to promote actuaries as both professionals and as commercially minded business people that are engaged in matters of significance?There is a need and opportunity for actuaries across Europe to position more strongly the role of the actuary in many areas ranging from risk and capital management to customer-facing areas such as product design and portfolio management.Such positioning needs to be supported by a strong image, and I would discourage 8216nerdy8217 or 8216quirky8217 articles that reinforce stereotypical views.Steve Wilson31 January 2008Petronas prideI just want to say thanks for publishing the article about Takaful Insurance (Jan/Feb 2008, p40). When I was flipping through the magazine, I was so proud to see the picture of the Petronas Twin Towers. The article also provided me with some background knowledge for an Islamic Banking and Insurance forum that I am attending at Imperial College.On another matter 8212 as a first year student in actuarial science, some of the sections are relatively technical to me. Would it be possible to have a section about students looking to pursue a career as an actuary? This could include explanations of some basic facts/theories (like how a pension fund works), some real-life case studies (application of actuarial-related theories), and hints and tips about job applications and careers. Keep up the good work with the magazine and the new website. Leong Hoo31 January 2008The editor replies: Thanks for your comments, Leong. The magazine website www.the-actuary.org.uk contains an archive of features on various topics that may prove helpful. An online Career Clinic section is also in development which is intended to act as a source of peer advice. I would also draw your attention to the feature by Johan Strydom in this issue on the development of the online encyclopedia, ActuarialWiki.org. See page 31.LettersYour view187 Was there really nothing the Profession could say about the commission-led system that pushes people into high-charging products? 1712008 March A selection of comments on the new-look magazine and websiteMay I suggest that on the people moves page (Jan/Feb 2008, p50), it is the individuals that are highlighted in bold, rather than the companies? It would make it much easier to scan for familiar names. Don ShoreThe editor replies: We agree. You can find the new style on page 48.Just thought I8217d let you know I appreciate the new matt paper you8217re printing The Actuary on 8212 so much easier to read without reflection from the lights. Wish all the other magazines I subscribe to would go the same way.Pauline ArmitageCongratulations on the new website. Just one suggestion 8212 for the news section, it would be nice to see a short precis of each story to save clicking on each one. Ron Engelbert The editor replies: Thanks Ron 8212 this has now been introduced.I really like this new format. Well done. It is an excellent new service to FIAs abroad. Ian MarkhamI8217m not impressed by the new style. The magazine is reminiscent of an airline magazine and that8217s not an image that I want to see our profession projecting. I have to conceal it behind a girlie mag when I8217m reading it.Steve MillsI love it! It8217s a great improvement.Malcolm JewellThanks for the e-mail alert sent via the Actuarial Profession. It prompted me to have a look at your website and I was impressed. Keep up the good work. E-mail alerts are great. Maria van BeekI generally don8217t pay much attention to the goings-on of the Profession, as my work is governed by the South African Financial Services Board. However, I am a voracious sudoku player (as is my managing director), and your online sudoku development leaves us feeling far more actuarial than we have in a long time! Congratulations on taking the Profession even deeper into the electronic age.Alastair John SellickCongratulations on the new magazine, it looks really good and is a real move forward for the profession.Bruce PorteousThe editorial team welcomes readers8217 letters but reserves the right to edit them for publication. Please e-mail letters@the-actuary.org.ukYour letters08_09_Actuary_Letters_0308.indd 919/2/08 13:09:51
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