The government of a certain country has just passed legislation creating a Fund for Protecting Pensions (FPP). When a sponsor of a defined benefit scheme becomes insolvent and the scheme is unable to provide the benefits that have been promised to members, the FPP will take over the scheme in order to guarantee benefits. The FPP will be financed by levies on the sponsors of defined benefit schemes and by the assets of schemes that it takes over. (i) List the parties that will be affected by the imposition of levies, and state how each is affected. [6] (ii) Discuss the potential conflicts of interest that an actuary might face in advising the FPP on the levies it should charge, and comment on how these potential conflicts could be managed. [5] A government is introducing regulation of benefit schemes. The legislation will create the statutory role of an Actuary for each scheme. The Actuary will be required to carry out a valuation of the scheme, using assumptions set out in regulations, to determine the future level of contributions, and to report the results to the scheme sponsors. (i) State the items the Actuary might be required to certify in the formal report on this valuation. (ii) Discuss the issues that the Actuary should consider when preparing the report. (iii) Outline the main items that would be included in the report. [3] [3] [3]