Appendix: Code of Professional Conduct July 2012

Question 1

professionalism for actuaries means:

Answer 1

• The application of specialist and up-to-date actuarial knowledge and expertise;
• The demonstration of ethical behaviour, especially in doing actuarial work; and
• The member’s accountability to the Society for professional oversight.

Question 2

1. The activities of the Actuarial Society of South Africa (‘the Society’) include developing:

Answer 2

a. the knowledge, expertise and skills of members as a primary source of authoritative advice and thought leadership in the understanding, modelling and management of financial and other measurable risk, and
b. a profession whose members’ conduct meets the highest professional standards.

Question 3

1. Members are expected to render quality services to their clients through:

Answer 3

a. The application of specialist and up-to-date actuarial knowledge and expertise;
b. The demonstration of ethical behaviour, especially in doing actuarial work; and
c. The member’s accountability to the Society for professional oversight.

Question 4

2. The principles of professional conduct therefore include:

Answer 4

a. Knowledge and expertise: A member shall perform only those professional services for which the member is competent and appropriately experienced.
b. Values and behaviour: A member shall act honestly, with integrity, competence and due care, and in a manner that fulfils the profession’s responsibility to the public.
c. Professional accountability: A member is subject to the professional requirements and oversight of the Society, and shall do nothing that brings the actuarial profession into disrepute.

Question 5

A member must not knowingly perform actuarial services involving a material actual or potential conflict of interest unless:

Answer 5

a. the member has disclosed the conflict and the nature of the conflict to the client in writing,
b. there are sound and defensible reasons for continuing to provide the service, and
c. these conflicts are declared in the member’s report, and reasonable steps have been taken to ensure that third party recipients of the report, who are likely to base judgements on or be materially affected by the advice therein, have been made aware of the circumstances.