Up to code BY KATHY RILEY
Keeping the Code
THE ACTUARIAL STANDARDS BOARD in the past few years has
revised six Actuarial Standards of Practice (ASOPs), and five more are
pending revisions. The Academy’s Committee on Qualifications has
expanded the scope of the Qualification Standards and increased the
continuing education requirements for actuaries issuing statements of
actuarial opinion. The Society of Actuaries, the Casualty Actuarial Society, the Conference of Consulting Actuaries, and the American Society
of Pension Professionals and Actuaries all have added continuing education requirements as a requirement for membership.
Staying current with professional
requirements is a job of its own. But we
also are faced with a steady stream of
new or revised government regulations
and changing accounting standards.
Add to these challenges the pressures
Staying current with professional requirements
is a job of its own. But we also are faced with a
steady stream of new or revised government regulations
and changing accounting standards. Add to this
the pressure to be efficient and profitable, and it is
not difficult to imagine a situation in which
mistakes are made or poor judgment is exercised.
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in today’s economy to be efficient and
profitable. It is not difficult to imagine
a situation in which mistakes are made
or poor judgment is exercised.
The most common alleged violations
of the Code of Professional Conduct
that are reported to the Actuarial Board
for Counseling and Discipline (ABCD)
involve Precept 1, the requirement to
act honestly, with integrity and competence; Precept 2, the requirement to be
qualified to perform actuarial services
and have satisfied the Qualification
Standards; or Precept 3, the requirement to satisfy applicable ASOPs.
When we encounter these situations,
we need to keep in mind Precept 13 of
the Code of Professional Conduct:
An Actuary with knowledge of an
apparent, unresolved, material
violation of the Code by another
Actuary should consider discuss-
ing the situation with the other
Actuary and attempt to resolve
the apparent violation. If such
discussion is not attempted or is
not successful, the Actuary shall
disclose such violation to the ap-
propriate counseling and discipline
body of the profession, except
where the disclosure would be
contrary to Law or divulge Confi-
dential Information.
The establishment of a code of
conduct, standards of practice, qualification standards, and disciplinary
procedures is common practice for a
self-regulating profession such as the
actuarial profession. High standards
maintain the integrity and reputation
of the profession and, as noted in the
Code of Professional Conduct, support
“the actuarial profession in fulfilling its
responsibility to the public.” A requirement to report apparent violations of
a profession’s code to the appropriate
disciplinary body is less common but
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