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IAI Actuarial Core Principles · Business Management · Characteristics of a profession and the Actuaries' Code

Meera, a newly qualified actuary in Pune, is asked by a friend why actuarial work is regarded as a profession and not simply an occupation. Which of the following is the most characteristic feature of a profession?

The defining feature of a profession is a specialised body of knowledge combined with duties to the public that can override personal or commercial interests. Salary, type of employer or freedom from oversight do not define a profession, which normally has regulation and discipline.

  1. AMembers hold a specialised body of knowledge and accept duties to the public that can override their own commercial interestsCorrect
  2. BMembers are paid higher salaries than workers in comparable occupations
  3. CMembers work only for large listed employers in the financial sector
  4. DMembers are free to set their own standards without any oversight
  5. Members must be employed full-time by a single client throughout their career

Explanation

A profession is typified by specialised knowledge, entry qualifications, a code of conduct and a duty to act in the public interest. Pay level, employer type or lack of oversight are not defining features, and professions normally have disciplinary oversight.

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