IAI Actuarial Core Principles · Business Management · Professional negligence

Rohan, a newly qualified Associate at a Chennai consultancy, is assigned to value a pension scheme alone and makes an error that a competent actuary would not make. He argues that he should be judged by the lower standard expected of a trainee. How is his argument most likely to be treated?

His argument would be rejected. The standard is that of a reasonably competent actuary performing the task undertaken, and it is not lowered because the individual is inexperienced. Lack of experience is not a defence to a breach of the objective standard.

1. AAccepted, because the standard falls with the experience of the individual
2. BAccepted, because his employer assigned the task without supervision
3. CRejected, because the standard is that of a reasonably competent actuary doing that task, regardless of his inexperienceCorrect
4. DRejected, because only senior Fellows owe a duty of care
5. Accepted, provided he did not charge the client directly