There is an inherent conflict of interest at the heart of the actuarial profession. Actuaries advise pension fund trustees as well as the sponsoring company. Actuaries will say that often these two groups want the same thing - a healthy pension fund. But that view is rather out of date. Companies increasingly want to plug pension gaps by spending as little as possible, while trustees have a duty to ensure the scheme is well funded. An interim review of the profession by Sir Derek Morris, published on Friday, pinpointed this conflict but suggested little to resolve it.

The Morris review, set up after Lord Penrose's inquiry into the debacle at Equitable Life, contains some damning criticisms of the actuarial profession. It says actuaries are too insular and inflexible, offer opaque advice and are not necessarily best placed to advise on asset allocation.