Hi Could a tutor please explain to me the validity of Qu 2.14 (a) from the Q&A on the FSAP? This is ActEd supplementary material so I guess my question is more a wider one around whether this content is examinable. Many thanks
I'm unable to comment on that particular question but the examiners (for ST5 particularly) commonly expect candidates to have "real world knowledge". Just look at the initial paragraph from a few recent examiner's reports. So it's not just the core reading you're expected to know but also issues a nearly qualified actuary would pick up from regularly reading the financial press, etc. I therefore would consider carefully whether to dismiss any material Acted thought worthy of including in the supplemental text on the grounds of not being "core reading". Obviously you should aim to know the core reading well, more so than the extra bits, but don't forget about the extra bits completly.
While the FSAP is only briefly mentioned in the Core Reading, the CR does include more material on EU directives (covered in the part (b) of the question). Didster is right. The ST5 examiners expect you to have real-world knowledge. They regularly examine topics that are outside of the pure Core Reading. For example, the recent turmoil in financial markets across Europe and the response of the EU authorities to the situation could make for an interesting exam question. We would hope a question like this makes you think a little about some of the wiser issues and understand a little more background than contained in the CR (even if this specific question is unlikely to come up in the exam). PS also worth a read of the ST5 FAQ thread here
