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

Rohit, a commerce graduate who is not a member of the Institute of Actuaries of India, begins signing certificates as 'Actuary' for small pension funds in Pune, claiming to hold the designation. Under the scheme of the Actuaries Act, 2006, what is the most accurate position?

Rohit is exposed to penal consequences. The Actuaries Act, 2006 restricts use of the actuary designation and practice to members of the Institute, and neither client consent, a mathematics degree nor a grace period removes that restriction.

  1. AHe is free to do so because the title is not protected by law
  2. BHe may do so provided the pension funds consent in writing
  3. CHe may do so for up to one year before registration is required
  4. DHe may do so if he holds any degree in mathematics or statistics
  5. He is liable to penal consequences because a person who is not a member cannot represent himself as an actuary or practise as oneCorrect

Explanation

The Act reserves the use of the actuary designation and the practice of the profession to members of the Institute. Holding another degree or obtaining client consent does not substitute for membership. Misrepresenting oneself as a member therefore attracts penalty under the Act.

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