The objective of the Policy Document is to provide standards and guidance on the preparation of the Financial Condition Report (‘
FCR’) which is one of the duties of the appointed actuary under paragraph 9.1(b) of both the
Policy Document on Appointed Actuary: Appointment and Duties and the Policy Document on Appointed Actuary: Appointment and Duties (for reinsurers and retakaful operators)1 issued by BNM on 28 April 2014 and 24 December 2014 respectively.
The FCR must provide for the appointed actuary’s overall investigation results, assessments, independent opinions and recommendations to the board of directors of a licensed person on various aspects of the licensed person’s financial condition such as its business, asset-liability management, capital adequacy and reinsurance/ retakaful arrangements. In addition, the FCR must identify and provide an assessment of any significant threats to the licensed person’s financial condition and include recommendations on the potential mitigation measures for such threats.
The Policy Document supersedes the Policy Document on Financial Condition Report issued by BNM on 30 December 2015 (‘
the Superseded Policy Document’).
Comment
The contents of the Policy Document are substantially similar to those of the Superseded Policy Document except for minor drafting and stylistic amendments.
Alert by Grace Teo Shi Kay (Senior Associate) of the Corporate Practice of Skrine.