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

Rahul, a Council member of the IAI, is also a director of an insurer that has applied for IAI approval of a training arrangement to be discussed at a Council meeting. Which action best reflects good governance and the Actuaries' Code?

Rahul should disclose the conflict and abstain from discussion and voting on that item. Disclosure alone, while still voting, leaves the conflict influencing the decision. Staying silent breaches integrity, and resigning from the profession would be a disproportionate response to a manageable conflict.

  1. ADisclose the conflict and abstain from discussion and voting on that itemCorrect
  2. BStay silent since he is an elected member and entitled to vote
  3. CVote in favour but record that he is a director
  4. DAsk the insurer to withdraw its application permanently
  5. Resign from the profession immediately

Explanation

Conflicts of interest should be disclosed and managed, which for a decision-maker normally means stepping out of the discussion and vote. Merely recording the interest while voting still leaves the conflict influencing the outcome. Resignation is disproportionate.

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