Code of Professional Conduct November 2009: Index
Code of Professional Conduct November 2009: Index
Code of Professional Conduct November 2009: Index
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
COMMENCEMENT DATE
DEFINITIONS
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
7
7
7
6
6.1
6.2
COMMUNICATIONS
Professional qualification and status
Publicity
8
8
9
REPORTING
8
8.1
8.2
9
9
10
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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
(ii)
1.2
(iii)
(iv)
(v)
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
Institutes Disciplinary Scheme.
1.3
Background
1.3.1
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 Institutes 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.
COMMENCEMENT DATE
This Code takes effect from 1 January 2010.
DEFINITIONS
Act means the Corporations Act 2001 (Cth) and any regulations made
thereunder, as amended or replaced from time to time.
Code means this Code of Professional Conduct of the Institute.
Constitution means the Constitution of the Institute.
Disciplinary Scheme means the Institutes Disciplinary Scheme, as set out in
the Schedule to the Constitution.
Eligible Actuary means:
(a)
(b)
Institute means The Institute of Actuaries of Australia (ABN 69 000 423 656).
Legislation means any law, regulation, by-law, standard or rule in force within
Australia (as amended from time to time) and made by a Commonwealth,
State or Territory government or authority.
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(b)
(ii)
Principal means the client or employer, as the case may be, who is the
primary recipient of a Professional Service provided by a Member and the
primary party for whom that Professional Service has been performed.
Professional Service means a service provided by a Member in a professional
capacity, including Prescribed Actuarial Advice. A Professional Service
includes such a service provided on a pro bono basis.
Professional Standard is a document setting out practice requirements in a
particular situation or area that has been prepared in accordance with the
Institutes Policy for Drafting Professional Standards and has been issued by the
Institute.
GENERAL
4.1
4.1.1
The Institute is a professional body that seeks to enhance the actuarial profession
and to serve the public interest. In order to achieve this, it is essential that
Members maintain proper standards of professional conduct and performance.
The Institute therefore establishes and maintains Professional Standards and this
Code to govern the provision of Professional Services by its Members.
4.1.2
When taken together the law, the Constitution, this Code and the Professional
Standards, both in general and as they relate to specific roles and responsibilities,
define a Members professional responsibility. In particular, provided that a
Member meets the requirements of the law, the Constitution, this Code and the
Professional Standards, then he or she will have met the expectations of the
profession with respect to the public interest.
4.1.3
The Institute relies on the conscience of each Member, and the collective
conscience of all Members, to ensure that this Code and any Professional
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Standards are applied effectively and that perceived breaches are dealt with in
accordance with clause 4.1.4.
4.1.4
A Member who reasonably believes that another Member may have committed
a breach of this Code or of a Professional Standard must first consider discussing
the matter with the other Member with a view to resolving it. If the matter cannot
be resolved, or if either Member does not consider such a discussion to be
appropriate or constructive, the concerned Member must seek the guidance
described in clause 4.2.4. Following such steps the concerned Member, if
warranted, must consider his or her duty to make a complaint in accordance
with the rules of the Disciplinary Scheme.
4.2
Professional conduct
4.2.1
A Member must act with integrity, honesty and due care, and in a manner that
seeks to uphold the reputation of the profession.
4.2.2
4.2.3
4.2.4
4.3
Professional experience
4.3.1
4.3.2
4.4
Impartiality
4.4.1
A Member who provides Prescribed Actuarial Advice must exercise his or her
independent professional judgment and give impartial advice.
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4.4.2
Except as set out in clause 4.4.3 of this Code, a Member who provides a
Professional Service (other than Prescribed Actuarial Advice) must exercise his or
her independent professional judgment and give impartial advice.
4.4.3
4.4.4
In any case, a Member must not act or give advice if there are constraints
imposed on his or her professional judgment which the Member considers would
result in engaging in conduct that would breach the standards of conduct set
out in clause 4.2.
4.5
Conflicts of interest
4.5.1
(b)
(c)
4.5.2
4.5.3
4.5.4
4.5.5
A Member must document the steps taken to manage any conflict of interest
and agree such steps with all Principals whenever such agreement is necessary
for the proposed resolution of a conflict of interest to be effective.
4.5.6
A Member must, as soon as practicable, disclose to his or her Principal the nature
of Material compensation or income to the Member or a related party from a
source other than the Principal that is related to the Professional Service provided
to the Principal.
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4.6
Confidentiality
4.6.1
A Member must have proper regard for the trust that is implicit in the relationship
between the Member and his or her Principal. The Member must take reasonable
steps to ensure that the information used and the result of any Professional
Services provided remain confidential to the extent expected by the Principal
and that the Principal is made aware if there is a breach of confidentiality.
4.6.2
4.7
4.7.1
4.7.2
4.7.3
In circumstances where the Principal does not address and, if necessary, rectify
any misuse within a reasonable time, and maintenance of confidentiality is or is
likely to be Materially damaging to third parties, the Member must obtain legal or
other relevant professional advice, and take the appropriate action required.
Also, in such circumstances the Member must consider whether, in the context of
his or her legal obligations, there is a greater obligation to such third parties than
the maintenance of confidentiality.
4.7.4
If a Member has reasonable doubt about whether the actions of a Principal are
legal and honest, the Member must consider his or her ongoing relationship with
that Principal.
4.8
4.8.1
A Member must, in a manner consistent with the Members obligations under this
Code, co-operate with third parties providing services to the Members Principal.
4.8.2
the new appointee (if a Member) must, where practicable, speak with the
incumbent or previous appointee. Before doing so, the Member must notify
the Principal unless the Member is otherwise constrained by a legal or
professional requirement from doing so. The incumbent or previous
appointee (if a Member) must take reasonable steps to cooperate with the
new appointee; and
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(b)
if the new appointee Member is aware that his or her advice differs
Materially from that of the incumbent or previous appointee, then the new
appointee Member must endeavour to explain the reasons for the
differences to the Principal.
4.8.3
5.1
5.2
(b)
then the Member must hold professional indemnity insurance that is adequate in
relation to that Professional Service.
5.3
The obligation under clause 5.2 may be met through cover provided through
other parties such as the Members firm.
COMMUNICATIONS
6.1
6.1.1
A Member must not describe himself or herself as an actuary unless he or she is:
6.1.2
(a)
(b)
a Member who has satisfied the requirements laid down by the Institute
from time to time pertaining to the use of the designation actuary.
(b)
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6.2
Publicity
6.2.1
6.2.2
6.2.3
REPORTING
A Member must ensure that his or her reporting (whether oral or written) in respect
of Professional Services provided:
(a)
(b)
(ii)
its fitness for the purposes for which such reporting may be required
or relevant;
(iii)
(iv)
(v)
8.1
8.1.1
8.1.2
All Prescribed Actuarial Advice must be, and be seen to be, the responsibility of
an Eligible Actuary or Eligible Actuaries. An exception occurs where part of the
advice relies upon the advice of an expert for which responsibility is not or cannot
be taken by the Eligible Actuary but is being formally taken by the expert. In this
case, any Prescribed Actuarial Advice provided by the Eligible Actuary must
identify the advice received from the expert, name the expert and, where
appropriate, provide details of the advice received. Where the Eligible Actuary
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assumes responsibility for the advice received from the expert, no mention of the
source of that advice need be made.
8.1.3
identify the Principal for whom the Prescribed Actuarial Advice is being
provided;
(b)
(c)
8.2
8.2.1
(b)
8.2.2
In circumstances where the third party has been, or is likely to be, misled because
of inadequacies in the transmission of the Eligible Actuarys Prescribed Actuarial
Advice, the Eligible Actuary must consider the provisions in clause 4.7.
8.2.3
Even if an Eligible Actuary has no specific reason to believe that his or her
Prescribed Actuarial Advice will be transmitted to a third party, the Eligible
Actuary must clearly state any restrictions on the broader application of the
Prescribed Actuarial Advice.
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