Professionalism - International Actuarial Association
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Transcript Professionalism - International Actuarial Association
Professionalism
IAA Fund Meeting
Kuala Lumpur, October 10, 2011
Darryl Wagner, FSA, MAAA
Agenda
What is professionalism?
The IAA and professionalism
Supporting actuarial professionalism
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Professionalism for the
actuary
professionalism is a key component of actuarial
education
it is important to devote time to learning about
professionalism as well as about technical skills
it is necessary to develop a professional attitude
and way of thinking – there are often no simple
black and white answers
we need to learn what it means to do a good
professional job
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Characteristics of a
profession
6 key characteristics of a profession are:
• members join together to apply a specialised skill
• the skill has been developed through appropriate
education
• members have a special relationship with those served
• recognised by the public as an authority in field of
expertise, able to serve the public interest
• standards of competence and conduct of members
• high level of integrity by members in exercising
judgement
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Professionalism in practice
Professionalism concerns behavior of
professionals and the profession
which will:
maintain the reputation and integrity of the
profession
serve the interests of clients/employers
serve the public interest (the common
good)
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Professionalism at two levels
Professional issues facing the profession, for example
• responding to regulators
• helping to educate government, the media and public
• ensuring that the profession is ‘fit for purpose’
Individual matters of professionalism, for example
• high ethical standards
• adhering to the code and standards of practice
• reporting if necessary (whistle-blowing)
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What is expected of us as
professional people?
• demonstrating, and applying appropriately, specialist
skills
• providing reliable up-to-date technical knowledge and
advice
• complying with Profession’s code of conduct and
standards
• complying with legislation and regulator’s standards
• performing statutory roles to a high standard
• behaving ethically
• exercising judgement with high level of integrity
• communicating well
• having due regard to the interests of those affected
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What is expected of us as
professional people? (continued)
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respecting and supporting others
relationship of trust with clients (fiduciary relationship)
being reliably confidential
life-long learning – developing our knowledge and skills
having no adverse disciplinary record
assisting the profession to serve the public interest
contributing to public debate
contributing to the work of the profession
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Professionalism-Recap
Incredibly important
Applies collectively and individually
Far reaching
Not black and white
Requires substantial and constant
attention
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The Mission of the IAA
To represent the actuarial profession and
promote its role, reputation and
recognition in the international domain
To promote professionalism, develop
education standards and encourage
research, with the active involvement of
its Member Associations and Sections, in
order to address changing needs
IAA Mandate to Professionalism
Committee
The IAA Council requested the
Professionalism Committee to
address the strategic action required
to “Achieve a common understanding
of the principles of professionalism,
including codes of conduct and
disciplinary procedures”.
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Key Conclusions
A common understanding of the
principles of professionalism (the
“Principles”) is possible.
Professionalism covers the actuary’s
technical competence and skills, ethical
behaviour and professional oversight.
Aspects of professionalism should be
introduced throughout the training and
development of an actuary.
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Definition of Professionalism
Professionalism means:
The application of specialist actuarial knowledge
and expertise;
The demonstration of ethical behaviour,
especially in doing actuarial work; and
The actuary’s accountability to a professional
actuarial association or similar professional
oversight organisation.
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The Principles of
Professionalism
Knowledge & expertise
Values & behaviour
Professional accountability
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Principle A
Knowledge & expertise:
“An actuary shall perform professional
services only if competent and
appropriately experienced to do so.”
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Principle B
Values & behaviour:
“An actuary shall act honestly, with
integrity and competence, and in a
manner that fulfils the profession’s
responsibility to the public and
upholds the reputation of the actuarial
profession.”
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Principle C
Professional accountability:
“An actuary shall be accountable to a
professional actuarial association or
similar professional oversight
organisation.”
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Key points of discussion
What exactly is “competence”?
How to define communication in a professional
context?
Is communication a “soft skill”?
Is business awareness always essential?
How to address the matter of the public interest?
How to deliver continuing professional development?
How and when should professionalism be taught?
How should professional accountability be defined?
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Key Recommendations
The IAA should adopt the Principles as proposed.
The Principles should be used within the IAA to
establish a common terminology and framework.
The Committee does not recommend that the IAA
develop a model code of conduct. The proposed
Principles are a sufficient basis from which FMAs can
develop their own codes of conduct. The process and
experience of developing its own code of conduct is
also an informative and valuable process for any FMA.
Council should consider further actions as set out in
the report in order to entrench the Principles within the
IAA and its FMAs.
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Professionalism
Ethics
ASOPs
Qualification
Standards
Laws & Regulations
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Code of
Professional
Conduct
Resources available to actuaries
Code of Professional Conduct
Regulations
Qualification standards
Continuing professional development
Actuarial Standards of Practice
Disciplinary Process
Peers
Common sense
Other support networks
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Resource Development
Models
Independent development
IAA principles/models
Leverage/mentorship
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Supporting Knowledge &
Expertise
Basic education
Continuing professional development
Actuarial standards of practice
Peer review
Other?
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Model International Actuarial
Standards of Practice
IAA established an Interim Actuarial
Standards SubCommittee
Current draft developed by Generic Task
Force – (ISAP 1) General Actuarial Practice
Foundational standard
Additional Task Forces on ERM, IAS 19,
IFRS 4 and Social Security
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Model International Actuarial
Standards of Practice
New Task Force established in May –
Task Force on a Permanent Structure
for International Standards
Due Process Task Force – working on
a revised due process for considering
Statements of Intent for developing
ISAPs
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Supporting Professional
Accountability
Counseling
Disciplinary process
Model for international cooperation:
• Established and/or recruited panels of
international experts to assist in local
administration of counseling and
discipline
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Questions?
Contact info:
Darryl Wagner
[email protected]
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