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IAI Actuarial Core Principles · Business Management · Actuaries Act, 2006 and IAI governance

A complaint is received alleging that Rohan, an IAI member, signed an actuarial certificate without the competence required. The Institute decides to examine it. Which description of how the Actuaries Act, 2006 treats this process is most accurate?

The Actuaries Act, 2006 gives the Institute a disciplinary framework, with a Board of Discipline and a Disciplinary Committee, to examine professional or other misconduct by members. Penalties can follow, so the Institute is the primary forum, not civil courts alone, the employer or the Reserve Bank of India.

  1. AThe Act provides for a Disciplinary Committee and a Board of Discipline structure to deal with professional or other misconduct, with the Council able to act on their findingsCorrect
  2. BOnly civil courts may examine any complaint against an actuary, and the Institute has no role
  3. CThe Institute may only send a private letter, as it has no disciplinary powers
  4. DThe insurer employing the member alone decides the penalty
  5. The complaint must be referred to the Reserve Bank of India for a ruling

Explanation

The Act sets up a disciplinary framework with a Board of Discipline and a Disciplinary Committee to investigate professional or other misconduct, and penalties may follow, including reprimand or removal of the name from the register. The Institute therefore has real disciplinary powers; courts, employers or the RBI are not the primary forum.

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