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

The Council of the Institute of Actuaries of India proposes to frame regulations on the conduct of examinations. In the oversight structure of the Actuaries Act, 2006, which statement best describes the role of the Central Government?

The Central Government retains supervisory authority over the Institute, including power to give directions in public interest and oversight of regulations. It does not run examinations, admit individual members or approve each disciplinary case, so the Institute is self-regulating within that framework.

  1. AIt has power to supervise the Institute and issue directions in the public interest, and regulations made by the Council are subject to its oversightCorrect
  2. BIt runs the examinations directly through the Ministry of Finance
  3. CIt appoints every member of the Institute individually
  4. DIt has no role once the Institute is established
  5. It must approve each disciplinary case before the Council can hear it

Explanation

The Act sets up the Institute as a self-regulating body but keeps the Central Government's powers over it, such as directions and oversight of regulations. The Government does not run exams, admit members individually or pre-approve every disciplinary case. Saying it has no role ignores its statutory powers.

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