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

Rohan, an actuary, is told by his employer to present a valuation result that he believes is materially misleading to policyholders. A regulator-like body governing his profession would expect him to recognise that a profession is characterised by which of the following?

A profession places an overriding duty on members to act with integrity and in the public interest, even when that conflicts with an employer's wishes. Following instructions is not a defence against disciplinary action, and profit maximisation is not a professional obligation.

  1. AAn overriding obligation to act with integrity and in the public interest, even where this conflicts with employer wishesCorrect
  2. BA duty to follow employer instructions in all circumstances
  3. CA right to withhold advice until a higher fee is agreed
  4. DAn obligation to maximise the employer's profit above all else
  5. An exemption from disciplinary action when acting on instructions

Explanation

Professionals owe duties beyond the employer, including integrity and the public interest. Following instructions does not exempt a member from discipline, and profit maximisation or fee leverage is not a professional duty.

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