Council reached agreement on a revised package of governance reform measures in late 2023. The reforms provide a more resilient, efficient, streamlined, agile governance structure better suited to the challenges presented by a rapidly changing world and a growing, global membership.
The reforms followed one of the largest member engagement programmes in the IFoA’s history to share the plans, answer members' questions and hear their views.
The reforms package aligns the IFoA with best practice in corporate governance and balances the need for change and the benefit of more independent involvement, with the desire of members to ensure that the IFoA continues to be led by actuaries.
It defines authority more clearly, establishes an IFoA Board consistent with modern governance standards, and focuses Council on strategic questions such as developing a long-term vision for the future of the profession.
This allows the Executive to run the day-to-day organisation, overseen by the IFoA Board.
Council, as the democratic embodiment of the membership now takes a more visionary view. It is responsible for creating a long-term vision representing the views of IFoA members, and articulating to the IFoA Board what IFoA members need to be successful from their professional body in terms of member experience, thought leadership, education, learning and regulation. The IFoA Board will then be responsible for how this vision is delivered, alongside overseeing the ongoing operations of the organisation.
Council would retain appropriate powers for existential decisions, in accordance with the IFoA’s Royal Charter, with the power to replace the Board Chair or Board if necessary.
The Council has approved amendments to a number of the IFoA’s Regulations. The votes approved by Council make the following changes:
Element |
Detail |
|
IFoA Board Chair |
An independent non-executive director |
|
IFoA Board Composition |
3 independent non-executive directors (1 of whom shall be the Chair) |
|
IFoA Board Appointment |
An appropriately constituted Nominations Committee(s) will in future be responsible for filling non-executive vacancies on the IFoA Board (other than the President, who will be an ex-officio member of the Board, as of right). Appointments will be made following an appropriately objective skills and competency-based selection process |
|
Presidential Terms |
The term served by the President increases from the current one-year to a two-year term; the first official elected with this term is expected to serve from the AGM in 2025-2027 |
The IFoA went through a thorough process to understand the effectiveness of the previous governance framework and to consider recommendations made to improve the position. We sought external and expert professional advice, with a review spanning several months to ensure input from a range of stakeholders. The review’s findings concluded that the current governance structure (as of June 2023) did not support the IFoA’s future direction.
The review resulted in a number of proposed changes to the organisation's structure. Council considered all proposed recommendations and overwhelmingly accepted that the agreed proposals were most appropriate for the IFoA’s purpose and structure. Following the largest member engagement programme in the IFoA’s history, Council voted on and agreed a revised set of reforms.
Our previous structure sat outside of the desired risk profile. In our profession, we are often looking at risk profiles of other businesses and we at the IFoA must be consistent with best practice. This resulted in the creation of a new IFoA Board with an independent Chair.
These reforms have resulted in a more resilient, efficient, streamlined, and agile governance structure better suited to the challenges presented by a rapidly changing world and a growing, global membership. Decisions can be made more effectively and efficiently which will ultimately benefit the member experience. Council will now be able to take a much more visionary and directional role in the future of the profession, focusing on the long-term future of the profession as well as member experience, education and regulation.
Council is responsible for creating a long-term vision for the profession which represents the views of IFoA members and articulates to the IFoA Board what IFoA members need from their professional body to be successful in terms of member experience, thought leadership, education, learning and regulation.
The IFoA Board is responsible for how this vision is delivered, alongside overseeing the ongoing operations of the organisation.
The revised role of Council is designed to reflect and amplify the voice of the membership. Council is responsible for the vision for the actuarial profession and acting as an advocate for the IFoA’s membership, strengthening the voice of members in all areas (e.g., the membership experience, thought leadership, education/lifelong learning, and regulation).
The world around us is changing at pace. The shifting nature of global risks, the rise of artificial intelligence and the difficulty in attracting top talent are just some of the challenges our profession is currently facing. It is therefore important the Council focus on how the profession navigates these changes and provides qualifying and qualified actuaries with the necessary guidance and tools required.
Council will be entitled to hold the IFoA Board to account on behalf of members as the custodians of the profession. There is a duty on the Board to have regard to the Council’s views and Council will retain the power, in extremis, to remove and replace the Board Chair or the Board itself.
No. As part of the reforms and the safeguards put in place in the structure, Council is entitled to hold the IFoA Board to account on behalf of members as the equivalent of ‘shareholders’ (owners). There is a duty on the Board to have regard to Council’s views and Council will retain the power, if completely necessary, to remove and replace the Board Chair or the Board itself.
Yes. These reforms are strongly backed by Council to ensure that the IFoA can practise good governance in line with external governance standards expected of any organisation. We will continue to operationalise our plans and, following review, the constitutional changes will be put to a member vote.
The IFoA is committed to providing the best possible education, guidance and community for current and aspiring actuaries. It awards the qualifications that underpin our work; it represents the profession and its interests externally; it thinks about the future of our profession in a changing world; it brings together actuaries in professional networks and at events; it sets professional standards, and - for some – it is also a regulator. The IFoA is also a community where lifelong memories and strong friendships are forged. The IFoA is, for many of us, a community where the actuarial profession lives and breathes.
It is therefore imperative that we are well-structured to serve our members and continue to maintain our independence. These reforms allow us to do this while helping to refocus the Council’s efforts where it really matters, concentrating on the long-term future of the profession and member issues.