The appointment of a national chief risk supervisor is among actuaries’ proposals for reform in the financial services industry.

Proposals by the International Actuarial Association (IAA) also include risk rating of remuneration policies and independent sign-off on the liability position of financial institutions.

IAA’s Enterprise and Financial Risk Committee Chairman Tony Coleman says more dynamic prudential rules, based on the risk ratings of a country chief risk supervisor would give regulators a another lever to work with besides monetary policy.

The institute supports the idea of increasing the capital requirements for any market participant with short-term incentive schemes so that remuneration policies and other incentive structures do not distort a proper evaluation of risk.