Types of Discipline
MAny OF yOu HAvE HAD THE OppORTuniTy to hear
presentations by members of the Actuarial Board for Counseling and
Discipline (ABCD) at local actuarial clubs or within your company or
firm. The members of the ABCD are eager to attend programs that
allow them to talk interactively about the role of the ABCD and in
which there is time to discuss a number of case studies. We believe
these sessions further the understanding of what is ethical conduct
and allow “safe” opportunities to discuss situations that any of us might
encounter during our actuarial careers. There is real value in providing
a forum for actuaries to talk about challenging issues.
During these presentations, we
frequently mention that requests for
guidance far outnumber cases in which
a formal complaint is brought against
another actuary. Still, there is value in
talking about those less frequent (but
far more worrying) situations involving
a formal complaint to the ABCD. While
it is to be hoped that you will never face
such a situation, it’s important to understand the process.
violation of the Code of Professional
Conduct. (There are some situations—
when there is a news report of personal
or professional misconduct, for example—in which the ABCD may initiate an
investigation on its own.) For all complaints, the ABCD’s chairperson and vice
chairpersons perform a preliminary evaluation to determine whether they should
be dismissed, mediated, or investigated.
In an investigation, an actuary with
appropriate business and technical ex-
perience in the subject matter to which
the complaint applies, is appointed by
the ABCD to look into the matter. The
subject actuary has an opportunity to
object to the appointment of a particu-
lar investigator for good cause. The next
step is a thorough and often lengthy
information-gathering phase in which
the investigator interviews the com-
plainant, the subject actuary, and others
with pertinent information. Various ma-
terials (such as court transcripts and
relevant actuarial communications),
which are sometimes lengthy and of-
ten complex, may need to be reviewed.
When the investigative report is com-
plete, the subject actuary has 30 days in
which to review the report and respond
with comments or clarifications. The
complaint, the investigator’s report, and
the subject actuary’s response then are
passed along to the full ABCD.
