Chapter 13: Professional guidance for actuaries

Question 1

Six key characteristics of a profession are:

Answer 1

• Members join together to apply a specialised skill.
• The skill has been developed through appropriate education.
• Members have a special relationship with those served.
• Members are recognised by the public as an authority in their field of expertise, able to serve the public interest.
• A profession is self-regulating regarding the competence and conduct of its members.
• Members display a high level of integrity in exercising judgement.

Question 2

Members of the profession gain, through their membership:

Answer 2

• Mutual support
• Lobby strength
• Status
• Income.

Question 3

Members of the public (those who use the services of actuaries) rely on the profession for:

Answer 3

• Specialist skills
• Confidential service
• Integrity
• Input into public debate
• Statutory roles
• Expert witness
• Redress.

Question 4

4.7. Expert witness

Answer 4

Actuaries may be relied upon to act as expert witness in a court of law. In so doing the actuary must not perform an advocacy role on behalf of his/her client - that is the province of the advocate of the court duly appointed for this purpose. The actuary must present neutral and unbiased witness concerning the case.

Question 5

The profession regulates itself in a number of ways:

Answer 5

• Code of Professional Conduct
• Disciplinary procedure
• Professionalism courses
• Education
• Practice Notes and Standards of Actuarial Practice
• Practising Certificates for certain roles.

Question 6

The profession requires actuaries to exhibit high standards of integrity and ethics in their conduct. Given that ethical standards might be perceived differently, one needs to consider what would constitute ethical behaviour. The measures that can be used are:

Answer 6

• Constitutional guidelines: The Constitution of South Africa states a number of shared beliefs that are deemed to be generally acceptable and applicable to all South Africans.
• Codes of conduct: Agreed codes set down by professional bodies, industry bodies and companies.
• Personal moral judgement: Applying one’s own code, whether influenced by cultural, religious or humanist considerations, should guide you towards making decisions with which you are personally comfortable.
• Guidance from others: While this should never override your personal judgement, the thoughts, ideas and interpretations of other people whose judgement you trust, can assist you to make the “right” decision.

Question 7

CPD

Answer 7

The maintenance, improvement and broadening of knowledge and skill and the development of the personal and professional qualities needed throughout an actuary’s working life

Question 8

CPD therefore involves

Answer 8

• A personal commitment to maintain and improve employment-related skills
• Conscious learning to support professional and technical competence
• The development and continuous improvement of the personal, business and management skills needed to meet the changing demands of a professional career.