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IAI Actuarial Core Principles · Business Management · Characteristics of a profession and the Actuaries' Code

A professional body for actuaries in India wants to be recognised as governing a true profession. Which of the following arrangements would be MOST consistent with the characteristics of a profession?

A professional body should control entry through examinations and qualifications, issue a code of conduct, and operate a disciplinary process with sanctions. This ensures competence and public trust, unlike fee-only admission, fee-setting activity or avoidance of accountability.

  1. AMembers are free to set their own standards individually with no common code
  2. BThe body admits anyone who pays a fee, without any examination
  3. CThe body sets entry qualifications, a code of conduct and a disciplinary process, and can sanction members who breach itCorrect
  4. DThe body's main role is to negotiate higher fees for its members
  5. The body restricts membership to reduce competition and avoids public accountability

Explanation

Professions control entry through qualifications, publish conduct standards and discipline breaches. Fee-only entry, absence of common standards, fee negotiation or avoiding accountability are inconsistent with the public-interest basis of a profession.

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