IAI Actuarial Core Principles · Business Management · Actuaries Act, 2006 and IAI governance
An IAI member argues that because the Council delegates examination matters to a standing committee, the Council no longer bears responsibility for how examinations are run. Which response is most consistent with sound governance in a statutory body?
The Council may delegate work to committees but remains ultimately accountable. It should define terms of reference, receive reports and monitor outcomes. Delegation does not transfer responsibility away, it is not prohibited, and committee size is irrelevant to accountability.
- ACorrect, because delegation transfers all accountability to the committee permanently
- BCorrect, provided the committee has more than ten members
- CIncorrect, because delegation of tasks does not remove the Council's ultimate accountability, so it must set terms of reference and oversee the committeeCorrect
- DIncorrect, because the Council may never delegate any function under the Act
- Incorrect, because only the Government can oversee committees of the Institute
Explanation
Under standard governance principles, a governing body may delegate work to committees but remains accountable, so it sets terms of reference, receives reports and monitors performance. Delegation is permitted, so the claim that it is never allowed is wrong, and committee size does not shift accountability. Oversight is not solely a Government function.
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