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 

      

2016 Valuation ActuarySymposium

Your Honor, I Thought I was Qualified

August 29, 2016

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?

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In a courtroom nearby.

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Presenters.

Mike Boot, FSA, MAAASociety of Actuaries

James Miles, FSA, MAAASociety of Actuaries

Larry Stern, FSA, MAACanterbury Consulting, LLC

YouThe Audience

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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.

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Professionalism

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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)

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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)

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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)

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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)

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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)

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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)

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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)

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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)

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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)

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Good-faith determination.

Ultimately, it is an actuary's responsibility to make a reasonable, good-faith 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)

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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)

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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)

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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)

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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)

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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)

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Changes in Application.

Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States

(effective January 1, 2008)

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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)

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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.

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Violated Code

of Professional Conduct

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Resources available to actuaries.

• Code of Professional Conduct

• Regulations

• Qualification standards

• Actuarial Standards of Practice

• ABCD

• Peers

• Common sense

• Other support networks

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Links.

Code of Professional Conducthttp://www.actuary.org/pdf/prof/code_of_conduct.pdf

Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States http://www.actuary.org/qualstandards/qual.pdf

FAQs on the U.S. Qualification Standards

http://www.actuary.org/files/COQ_FAQ.pdf

SOA Continuing Professional Development Requirement http://www.soa.org/professional-development/cpd-requirement/default.aspx

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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

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