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
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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
dawagner@deloitte.com
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