Actuary and Prescribed Actuarial Advice Essay

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CODE OF PROFESSIONAL CONDUCT
November 2009

INDEX
1
1.1
1.2
1.3
1.4
1.5
1.6

INTRODUCTION
Application
Classification
Background
Purpose
Previous versions
Legislation

2
2
2
2
3
3
3

2

COMMENCEMENT DATE

3

3

DEFINITIONS

3

4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8

GENERAL
Responsibility of Members in serving the public interest
Professional conduct
Professional experience
Impartiality
Conflicts of interest
Confidentiality
Potential misuse of Professional Services
Co-operation with others

4
4
5
5
5
6
6
7
7

5

PROFESSIONAL INDEMNITY INSURANCE

8

6
6.1
6.2

COMMUNICATIONS
Professional qualification and status
Publicity

8
8
8

7

REPORTING

9

8
8.1
8.2

PRESCRIBED ACTUARIAL ADVICE
Provision of Prescribed Actuarial Advice
Transmission of Prescribed Actuarial Advice to third parties

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1

INTRODUCTION

1.1

Application

1.1.1

Subject to clause 1.1.2, this Code applies, in its entirety, to all Members.

1.1.2

Where a Member is practising outside Australia, the Member must:
(a) if he or she is a member of the local association in the jurisdiction of employment or practice (“Local Association”) and that Local Association is a
Full Member of the International Actuarial Association (“IAA”), comply with that Local Association’s equivalent of the Code; or
(b) if:
(i)

the Member is not a member of the Local Association; or

(ii)

the Local Association is not a Full Member of the IAA,

then the Member must either:

1.2

(iii)

comply with this Code; or

(iv)

comply with an alternative to this Code prescribed by the Council of the Institute; or

(v)

seek the written consent of the Council of the Institute to be made subject to an alternative to this Code.

Classification
All Members of the Institute of Actuaries of Australia must comply with this Code of Professional Conduct. Non-compliance with this Code by a Member is or may be prima facie Actionable Conduct and may lead to penalties under the
Institute’s Disciplinary Scheme.

1.3

Background

1.3.1

The Institute’s Council established a comprehensive review of the Institute’s Code of Conduct which was undertaken in 2005. The review was conducted to ensure that the Code properly reflected and upheld the objects of the Institute’s
Constitution and continued to articulate high standards and principles of professional practice. Reports of relevant Institute taskforces and developments in other jurisdictions were considered as part of the review.

1.3.2

In 2007, the Professionalism Review Taskforce was formed to consider whether the
Code should be amended in light of experience with its operation since its introduction in March 2006, as well as possible amendments arising out of designations changes then proposed and subsequently adopted. This November
2009 version of the Code was introduced following that review.

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1.4

Purpose
This Code of Professional Conduct sets out the minimum standards of professional conduct to be observed by Members of the Institute of Actuaries of Australia.

1.5

Previous versions

1.5.1

The Institute’s Code of Conduct was first issued in November 1976. Revisions were made in April 1998 and December 2001.

1.5.2

In March 2006, the Code of Conduct was substantially amended and re-issued as the “Code of Professional Conduct”. The Code was further amended in February
2007 with respect to draft reports.

1.6

Legislation
In some areas of professional practice there is specific legislation that sets out statutory duties and responsibilities for Members. In the event that there is or may be a conflict between such statutory requirements and this Code, the statutory requirements override this Code to the extent of the inconsistency.

2

COMMENCEMENT…