Skip to content

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

Arjun, a software consultant with no actuarial qualification, starts describing himself on his visiting card as 'Fellow Actuary, Institute of Actuaries of India'. A client asks whether this is a concern under the Actuaries Act, 2006. Which response best reflects the Act's approach?

This is a concern because the Actuaries Act, 2006 reserves membership designations, such as Fellow, for persons admitted as members of the Institute. Using them without membership is an offence. Work experience or payment of fees does not entitle someone to the title.

  1. AIt is acceptable because the title is not legally protected
  2. BIt is acceptable if he has worked with actuaries for at least five years
  3. CIt is acceptable provided he pays an annual fee to the Institute
  4. DIt is a concern, because the Act restricts use of the designations of membership to persons admitted as members of the Institute, and misuse is an offenceCorrect
  5. It is only a matter for the client's internal policy, with no legal consequence

Explanation

One objective of the Act is to protect the public and the profession by reserving membership designations to those admitted by the Institute. A person who is not a member and uses the designation, or who claims to be one, breaches the Act and can be penalised. Experience or fees do not confer the right to the title.

Did you get it right without looking?

One question tells you little. A timed set on Actuaries Act, 2006 and IAI governance shows your real accuracy, how long you take and where you lose marks.

Practise Actuaries Act, 2006 and IAI governanceFree diagnostic mock

More Actuaries Act, 2006 and IAI governance questions