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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 society grants actuaries the right to self-regulate through the Institute. Which feature of a profession best explains the justification for this arrangement?

Self-regulation is justified because members possess specialised knowledge and accept public-interest duties that override personal commercial gain, backed by enforceable standards and discipline. Salary guarantees, free fee setting, immunity from negligence claims or insurer-only work are not defining features of a profession.

  1. AMembers hold specialised knowledge and accept duties to the public that override their own commercial interestCorrect
  2. BMembers are guaranteed higher salaries than non-professional staff in the same firms
  3. CMembers are free to set any fee they like without client scrutiny
  4. DMembers are exempt from civil liability for negligent advice
  5. Members work only for insurance companies regulated by IRDAI

Explanation

Professions are granted self-regulation because they combine specialist knowledge, a public-interest duty and enforceable standards of conduct. The other options describe privileges or limits that a profession does not have. In particular, professionals remain liable for negligence.

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