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IAI Actuarial Core Principles · Business Management · Trusts and agency

An actuary, Divya, is appointed trustee of a staff benefit trust and is asked by the beneficiaries to explain how the trust fund has been invested. Consistent with beneficiaries' rights and the Actuaries' Code principle of integrity and communication, what should she do?

Divya should give the beneficiaries clear and accurate information on the trust fund and its investment, within the trust terms and law. Beneficiaries are entitled to information, and the Actuaries' Code requires honest, non-misleading communication rather than selective or delayed disclosure.

  1. ARefuse, because only the settlor may receive information
  2. BProvide clear and accurate information about the trust property and its investment, subject to the trust terms and lawCorrect
  3. CGive selective information that shows only favourable returns
  4. DDelay indefinitely until the beneficiaries file a suit
  5. Share the information only with the beneficiary who is a relative of hers

Explanation

Beneficiaries are generally entitled to information about the trust property and its management, and a trustee must keep accounts. The Actuaries' Code requires honest, clear communication and avoiding misleading statements. Selective disclosure or favouritism would breach both duties.

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