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

A trainee, Kavya, is asked to explain how the Actuaries Act, 2006 relates to the Institute's own governance. Which statement is correct?

The Act establishes a Council to manage the Institute's affairs and empowers the Institute to make regulations on matters such as admission, examinations and conduct. Governance is not run directly by the government, the insurance regulator or the Supreme Court.

  1. AThe Act sets up a Council of the Institute to manage its affairs, and the Institute makes regulations under the Act for matters such as admission and examinationsCorrect
  2. BThe Act requires all governance decisions to be taken directly by the Central Government
  3. CThe Act leaves governance entirely to the Institute's members with no Council
  4. DThe Act gives the insurance regulator the power to elect the Institute's office bearers
  5. The Act provides that governance is handled by the Supreme Court

Explanation

The Act provides for a Council that manages the Institute's affairs and for regulations that the Institute makes, subject to the Act and government oversight, covering matters like membership, education and conduct. It does not give day-to-day governance to the government, the insurance regulator or courts.

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