Tag: Actuarial

Two sides of the same story

A mathematical postscript to the fairy tale in New York that tells me I need to learn to relax more when I watch tennis. 😧

Submission to BEIS

In 2016, the Financial Reporting Council (FRC) issued a regulation known as TAS 100, which governs certain activities that are open to anyone to undertake. But the regulation applies only when the activity is carried out by an actuary. This has created the anomalous position that:

Accountants in a tangle with Webb

Regular readers of this blog must be sick to death by now of me repeating how much damage accounting standards are doing to pension schemes (here, here, here and, even on video, here). So I’ll be brief this time – very, very brief. There is finally light at the end of the accounting tunnel.

You mean we’re NOT supposed to avoid tax?

Tax avoidance has become a hot topic. The Times newspaper has recently unmasked a scheme in which income tax is avoided by the ludicrously simple means of saying the salary is only a loan which might have to be repaid (but never actually is). One of the newspaper’s columnists, David Aaronovitch, has been writing about the immorality of tax avoidance (both links behind a paywall).

I used to think it was easy to spot the moral dividing line when it came to tax avoidance. If our government had created the exemption, that meant they positively wanted us to take advantage of it. Anything else was almost certainly a loophole and morally objectionable, even if it was legal. But does that distinction still apply?

Shoot the messenger!

Financial accounts are supposed to enable readers to understand the financial position of the entity under review. But, yesterday, the National Association of Pension Funds published a report attacking the notion that accounts provide neutral and reliable information about an employer’s pension scheme liabilities. The critique, written for the NAPF by Dr Iain Clacher and Professor Peter Moizer of Leeds University Business School, is pretty damning of the standard setters.

What equal pay teaches us about the Human Rights Act

The European courts have been causing controversy (again). Judgements handed down in Brussels and Strasbourg have left conservatives (small “c”) aghast and Liberals (big and small “L”) defending the rights-based approach. But scratch beneath the surface and, often, it’s not the rights that objectors object to. The problem is that, so often, the rights awarded in Europe aren’t what we were led to expect when those rights were introduced.

Accountants becoming effective?

I think the three words at the end of the following sentence must be the most chilling – and the most heart-warming – I have ever read from an accounting standard-setter:

The Hutton Contribution

I had always thought that employee contributions into a pension scheme were a mistaken idea. Should I be re-thinking that in the light of Hutton’s report out today? Or should Lord Hutton?

Time to start thinking again, I think

Lindsay Tomlinson is calling for a summit to change the way pension costs are calculated in company accounts. As chairman of the National Association of Pension Funds, Tomlinson would say that, wouldn’t he? Except that Lindsay Tomlinson is also a director of the Financial Reporting Council, the parent body for the UK’s accounting standard-setters.

Game, Stress & Match

I took the morning off to watch Andy Murray’s semi-final in Australia before heading to the Centre for the Study of Financial Innovation for a discussion on risk modelling. Intriguingly, it was the guys sponsored by RBS who outshone at both events.