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

Meera, a Fellow of the IAI, is found by the Disciplinary Committee to have signed a valuation report without performing the required checks, which falls within professional misconduct. Which outcome is consistent with the Act's disciplinary framework?

The Institute can impose graded disciplinary sanctions after an inquiry, such as reprimand, temporary removal from the register or a fine. Penalties are not automatic or lifelong without a hearing, are not shifted to the client, and are not decided first by the Central Government.

  1. AOnly a verbal warning is legally permitted
  2. BThe Institute may take disciplinary action against her, such as reprimand, removal of name from the register for a period or a fine, depending on the findingCorrect
  3. CThe Central Government alone must decide the penalty without any inquiry
  4. DHer client can be fined in her place
  5. Her membership automatically lapses for life without any hearing

Explanation

The Act provides an inquiry mechanism with graded sanctions such as reprimand, removal from the register and fines, after a fair process. Penalties are not limited to a verbal warning, are not imposed on clients, and do not follow automatically without a hearing. The Government does not decide in the first instance.

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