SA3 September 2010

[LastHurdles]

Just attempted to draft a solution to question 1 part i.

Is the senior management arrangements, system and controls standards part of the core reading or was it and has subsequently been removed?

I haven't come across it myself, so just wanted to see what others thought?

 

[Katherine Young]

This was broadly based on bookwork that was in the course at the time,covering some of the detail contained in the FSA Handbook. The Handbook had not been examined before, so many students were caught out. Indeed, the examiners said that knowledge of the legislation was poor.

Since this exam was set, most of the Core Reading covering this topic has been removed. Having said that, the examiners were in any case expecting more detail than that given in the Core Reading alone. It's a prime example of how the examiners don't restrict themselves to the Course Notes.

Mind you, you could take an educated guess at the areas that the standards would cover. For example, “effective risk control” is an obvious common sense idea. You could even use ideas gleaned from Subject CA1.

Most of the marks in this part are for discussing the concerns with the insurer’s approach to meeting the requirements. Your answer here can be driven directly by the detail in the question.

 

[LastHurdles]

Thank you for the response Katherine.

I agree, some of the points were obvious!