Objectives and key requirements of this Prudential Standard

This Prudential Standard sets out the requirements for the roles and responsibilities of an Appointed Actuary.

The Appointed Actuary is responsible for providing impartial advice in relation to the life company’s operations, financial condition, capital base, prescribed capital amount and policy liabilities. It is the ultimate responsibility of the Board of a life company to enable its Appointed Actuary to undertake his or her responsibilities.

The key requirements of this Prudential Standard are:

• the Appointed Actuary must provide an assessment of the overall financial condition of the life company on an annual basis. In particular, the Appointed Actuary must prepare a Financial Condition Report and provide this report to the company;
• a life company must submit the Financial Condition Report to APRA;
• the Appointed Actuary must provide advice to the life company on the methodology for calculating the prescribed capital amount, the capital base and the policy liabilities of the company and each of its funds;
• the Appointed Actuary must calculate values for the prescribed capital amount, the capital base and the policy liabilities of the life company and each of its funds on an annual basis and must advise these amounts in the Financial Condition Report;
• the Appointed Actuary may also be required to provide advice to the life company on certain life policies and reinsurance arrangements; and
• the Appointed Actuary may be required to conduct a special purpose review and provide a report to APRA and the life company.