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IAI Actuarial Core Principles · Business Management · Professionalism and ethics case studies

Anita, a Fellow of the IAI, is asked by a new client to take over work from a previous actuary, Mr Verma, who has completed the earlier valuation. Before accepting, which step is most consistent with professional conduct?

Anita should get the client's permission and contact the previous actuary before accepting, so she learns of any relevant professional circumstances behind the change. Accepting at once or speaking to his other clients ignores courtesy and confidentiality obligations.

  1. AAccept immediately, as the client's instruction is sufficient
  2. BContact the previous actuary only after delivering her own report
  3. CObtain the client's permission and communicate with the previous actuary to learn of any relevant circumstances for the changeCorrect
  4. DAsk Mr Verma's other clients about his reasons for leaving
  5. Refuse all such appointments, as taking over work is unethical

Explanation

Good practice is to seek the client's consent and communicate with the outgoing actuary so any professional issues behind the change are known before accepting. Contacting him after reporting is too late, and approaching his other clients breaches confidentiality.

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