Session 6, Your Honor, I Thought I Was Qualified. Moderator: James A. Miles, FSA, MAAA. Presenter: Mike A. Boot, FSA, MAAA. Larry N.

Transcription

1 Session 6, Your Honor, I Thought I Was Qualified Moderator: James A. Miles, FSA, MAAA Presenter: Mike A. Boot, FSA, MAAA James A. Miles, FSA, MAAA Larry N. Stern, FSA, MAAA

2 2016 Valuation Actuary Symposium Your Honor, I Thought I was Qualified August 29, 2016

3 When you state that you are qualified to a client or on a document, what do you mean? If your qualifications were challenged, what would you present to the other party to convince them that you are qualified? If something fails because you made an error or a poor decision in some actuarial aspect is that de facto evidence that you are not qualified? 2

4 In a courtroom nearby. 3

5 Presenters. Mike Boot, FSA, MAAA Society of Actuaries James Miles, FSA, MAAA Society of Actuaries Larry Stern, FSA, MAA Canterbury Consulting, LLC You The Audience 4

6 The Fine Print. The statements and opinions expressed today are solely those of the presenters and the members of the audience. They do not constitute official statements or positions of the Society of Actuaries. 5

7 Professionalism 6

8 The Code of Professional Conduct sets forth what it means for an actuary to act as a professional. Code of Professional Conduct (effective January 1, 2001) 7

9 Actuary. An individual who has been admitted to a class of membership to which the Code applies by action of any organization having adopted the Code. Code of Professional Conduct (effective January 1, 2001) 8

10 Precept 2. An Actuary shall perform Actuarial Services only when the Actuary is qualified to do so on the basis of basic and continuing education and experience, and only when the Actuary satisfies applicable qualification standards. Code of Professional Conduct (effective January 1, 2001) 9

11 Actuarial Services. Professional Services provided to a Principal by an individual acting in the capacity of an actuary. Such services include rendering of advice, recommendations, findings, or opinions based on actuarial considerations. Code of Professional Conduct (effective January 1, 2001) 10

12 Statement of Actuarial Opinion. An opinion expressed by an actuary in the course of performing Actuarial Services and intended by the actuary to be relied upon by the person or organization to which the opinion is addressed. Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 11

13 Duty of Qualification. An actuary must be mindful of the obligation imposed by Precept 2 of the Code of Professional Conduct not to perform Actuarial Services unless qualified to do so. Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 12

14 Obligation. This obligation may require the actuary to obtain qualifications in addition to those set forth in the Qualification Standards. Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 13

15 Presumed qualified. However, where an actuary has satisfied the Qualification Standards, in the absence of evidence to the contrary, there is a presumption that an actuary has met the duty of qualification imposed by the Code of Professional Conduct. Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 14

16 Periodic assessment. Actuaries should regularly review their qualifications... Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 15

17 Good-faith determination. Ultimately, it is an actuary's responsibility to make a reasonable, goodfaith determination of what continuing education opportunities will enhance an actuary's ability to practice in a desired field. Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 16

18 Requirements. The Qualification Standards contain two basic elements: basic education and experience requirements and continuing education requirements. In order to comply with the Qualification Standards, an actuary is required to satisfy both elements. Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 17

19 Precept 3. An Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy applicable standards of practice. Code of Professional Conduct (effective January 1, 2001) 18

20 General Qualification Standard. Basic Education Experience Continuing Education Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 19

21 Specific Qualification Standards. Basic Education Experience Continuing Education Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 20

22 Changes in Areas of Actuarial Practice. General Qualification Standard Specific Qualification Standard Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 21

23 Changes in Application. Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 22

24 Emerging or Non-Traditional Areas of Actuarial Practice. Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (effective January 1, 2008) 23

25 Judge: You have been found guilty on all counts. Before I hand down your sentence is there anything that you would like to say? Actuary: Your Honor, I thought I was qualified. 24

26 Violated Code of Professional Conduct 25

27 Resources available to actuaries. Code of Professional Conduct Regulations Qualification standards Actuarial Standards of Practice ABCD Peers Common sense Other support networks 26

28 Links. Code of Professional Conduct Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States FAQs on the U.S. Qualification Standards SOA Continuing Professional Development Requirement 27

29 Actuarial Board for Counseling and Discipline (Closed Cases) 61% Responded to Request for Guidance 24% Dismissed Case 6% Dismissed Case with Guidance 4% Counseled 3% Recommended Public Discipline 2% All other actions 28

30 29