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IAI Actuarial Core Principles · Business Management · Professionalism and ethics case studies

A complaint is made against a member of the Institute of Actuaries of India alleging professional misconduct. Under the framework of the Actuaries Act, 2006, which feature best describes how the matter is handled?

The Actuaries Act, 2006 provides a disciplinary process through the Institute in which the member is heard before any penalty. Penalties can include reprimand or removal from the register. Removal is not automatic on complaint, and employers or only civil courts do not decide it.

  1. AThe Institute's Council may not look into it; only civil courts can hear it
  2. BIt is dealt with through a disciplinary process that can lead to penalties such as reprimand or removal of name from the register after the member is given a chance to be heardCorrect
  3. CThe member is automatically removed from the register on receipt of a complaint
  4. DThe complaint is decided by the actuary's employer under its own rules
  5. Only the Central Government may examine the matter and no hearing is needed

Explanation

The Act provides a disciplinary mechanism run through the Institute, following natural justice principles including a hearing. Penalties range from reprimand to removal from membership. Automatic removal or employer adjudication is not provided for.

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