Deloitte LLP associate partner James Rakow has been fined £75,200 – not to mention getting a severe reprimand – for actuarial services provided to Equity Syndicate Management Limited (ESML) and Syndicate 218 in 2008 and 2009.
A member of the Institute and Faculty of Actuaries (IFoA), Rakow admitted misconduct and agreed to pay £400,000 as a contribution to the executive counsel’s costs.
Announcing the outcome of the disciplinary case, the Financial Reporting Council (FRC) said Rakow’s conduct fell significantly short of the standards reasonably expected of a member of the IFoA.
“As a result of his admitted failings, he was not in a position to sign, and therefore ought not to have signed, the 2008 and 2009 Statements of Actuarial Opinion in relation to Syndicate 218,” stated the FRC.
The case stemmed from ESML’s reserving procedures, which were investigated by Lloyd’s after the managing agent, in 2010, reported a deterioration of an estimated £311 million in respect of net ultimate claims for the 2009 and prior years of account.
ESML – now known as ERS under a different ownership – admitted two charges of detrimental conduct in proceedings before the Lloyd’s Enforcement Board. It was subsequently censured.
Rakow, according to a
Financial Times report, remains employed by Deloitte. Meanwhile, the FRC said the case as it relates to KPMG LLP is still ongoing.
Related stories:
Lloyd’s insurer announces restructuring plans
