Why a Code of Conduct?

 
 Characteristics of a Profession
 Specialized knowledge or service
 Confidential relationship with employer/client
 Public obligation (altruistic)
 Autonomy/clients incapable of appraising service
 Official recognition
 Ethical code/code of conduct
Applying Code Without Knowing It ,
 Consider whether you are qualified to do an assignment
 Follow Actuarial Standards of Practice?
 Identify yourself in actuarial communications?
 Identify clients when there may be a conflict of interest?
 Put limitations on the distribution of your work?
 Protect confidentiality of information
 The revised Code took effect January 1, 2001
 Sets forth professional/ethical standards for Academy members
 Adopted by the AAA, SOA, ASPPA, CAS, and the CCA
 Actuaries who commit material violations are subject to counseling/disciplinary
process
 Actuaries must remain current with the Code and comply with its provisions;
violations subject to counseling and discipline procedures
 Precepts are standards; annotations assist with interpretation/application •
Follow applicable standards wherever you practice
 Also subject to jurisdictional codes or standards
 When Code and law conflict, follow the law

Professional Integrity 
1Act honestly, with integrity and competence, and in a manner that fulfills the
profession’s responsibility to the public and upholds its reputation
 Perform professional services with skill and care
 Refuse to provide professional services that would violate or evade the law, or
damage the profession’s reputation
 Do not use relationship with one party to obtain illegal or improper treatment for
another party
 Do not engage in professional conduct that involves dishonesty, fraud, deceit,
deception, or misrepresentation, or act in a way that will reflect adversely on the
actuarial profession

 Perform professional services only when qualified to do so AND in compliance with

Qualification Standards
  Know and follow applicable Qualification Standards for appropriate jurisdiction; in
U.S., published by the Academy.
 The absence of a Qualification Standard does not relieve you of the duty to comply.

Standards of Practice 

 Make sure that work performed by you, or under your direction, meets
applicable standards of practice
 Know and follow applicable standards for the jurisdiction; in the U.S., ASOPs of
the ASB
 When applying standards, use professional judgment
 Be prepared to disclose and justify deviations

Communications and Disclosure

 Take appropriate steps to ensure that communications are clear, appropriate to the
circumstances and intended audience, and comply with applicable ASOPs
 Identify yourself as person responsible for your communications
 Indicate your availability to provide supplemental information
 As appropriate, identify your principal(s) and the capacity in which you serve
 Make timely disclosure to Principal of all known direct and indirect sources of
compensation related to the assignment
 Disclose any relationships that are pertinent but may not be apparent
 This applies to all such compensation, wherever received within your firm

Conflict of Interest
 Do not knowingly provide professional services involving a real or potential
conflict of interest unless:
 Your ability to act fairly is unimpaired,
 There has been disclosure of the conflict to all known affected Principals, and
 Such Principals have expressly agreed to your performing the professional
services

Control of Work Product 

 Take reasonable steps to ensure that your services will not be used to mislead
other parties
 Recognize the risk of misuse
 Present your work clearly and fairly
 Set appropriate limits on the use and distribution of your work
 Confidentiality 

Do not disclose confidential information unless authorized by the Principal, or required

by law, to do so

Courtesy and Cooperation

 Perform services with courtesy and professional respect and cooperate with
others in the Principal’s interest
 Discuss differences of opinion objectively and with courtesy and respect
 You may agree to represent, in the same matter, another actuary’s current or
former Principal
 You may issue an alternative opinion to one issued for a Principal by another
actuary but include support
 You may wish to consult with a prior actuary; get the Principal’s consent first
 Cooperate with an actuary who takes over a Principal’s account, unless you have
a pre-existing agreement with the Principal to the contrary; financial issues not a
valid reason
Advertising
 Do not engage in advertising or business solicitation that is false or misleading in any
medium
 Includes any communication that may directly/indirectly influence person’s or
organization’s decision whether, and from whom, to obtain actuarial services

Titles and Designations 

 Use membership titles and designations only as authorized by your organizations
 A “title” is a position (e.g., Committee Chairperson)
 A “designation” is a class of membership (e.g., ASA, FSA, or MAAA)

Violations of the Code 

 Actuary who knows of apparent, unresolved, material breach by another actuary
should consider discussing matter to obtain a resolution
 If discussion not attempted or not successful, report it to ABCD, unless prohibited
by law or confidential information would be divulged
 Material violations are those that are important or affect an outcome; trivial
infractions, or those merely of form, are not material
 Not needed to be discussed if prohibited by law or is acting in an adversarial
environment
 Respond promptly, truthfully, and fully in writing to ABCD’s request for
information
  Cooperate fully with ABCD investigation, subject to applicable restrictions on
confidential information, or those otherwise imposed by law

The Council has laid down a code of conduct for Architects. –

To ensure, that by engaging the services of a qualified Architect registered with Council of
Architecture, a client will get proper professional advice, service and "value for money".

The Council of Architecture in Architects' (Professional Conduct) Regulations, 1989 states the
following, about the role of an Architect.
 Professional service is essentially a personal one, but the comprehensive responsibilities
are often fulfilled in co-operation with members of other professions.
 It is the Architects function to advise on the need for other professionals and he is
responsible for the direction and integration of their work with that of his own.
 The Council of Architecture has laid down standard terms for comprehensive
architectural services in its document entitled Architects' Professional Conduct
Regulations, 1989.
 It has also laid down in the same document standard scale of remuneration for such
comprehensive services along with a model Letter of Appointment.
 Hence appointing an Architect registered with Council of Architecture is a sufficient
guarantee to a client that he will get proper professional service.
 However, if the client tries to negotiate the fees with an Architect, he is taking the risk of
inferior professional service which may result into a badly-designed project involving
cost over-runs and time over-runs.
 f such a client makes a complaint against the Architect to Council of Architecture or to a
Consumer Forum for "Deficient Services" he may not get the expected relief.

1. Architects (Professional Conduct) Regulations, 1989 • The Council of Architecture, with the
approval of the Central Government, has made the following regulations to promote the
standard of professional conduct/ self-discipline required of an Architect