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Professional Conduct Standards. 3: Standards for actuarial advice

Professional Conduct Standards, version 3.0

3.1 In formulating advice, a member must pay proper regard to any relevant professional standards or external requirements and, subject to that, is expected to exercise professional judgement
3.2 Many assignments offered to members require considerable knowledge and experience for proper completion. Requisite knowledge includes methodology, relevant legislation and local conditions. Members must not undertake assignments or give advice, unless:
  • satisfied of personal competence in the relevant matters, or
  • acting in co-operation with, or with the guidance of, someone (not necessarily a member) with the requisite competence.
3.3 Notwithstanding paragraph 3.2, a member may provide advice if the circumstances are such that, having regard to all the relevant factors, it would be contrary to the client's interests to decline to do so. However, the member must make clear to the recipient that, in the absence of the constraining circumstances, the member would have recommended referring the matter to someone with the relevant knowledge and experience.
3.4 A member must consider the extent to which it is appropriate to carry out investigations to assess whether the data is sufficiently accurate and complete for the purpose for which it is being used. The advice should include an explanation or qualification if the member has any material reservations about the data.
3.5 Advice should normally include sufficient information and discussion about each relevant factor and about the results of the member's investigations to enable the intended recipient of the advice to judge both the appropriateness of the recommendations and the implications of accepting them, including, where the advice relates to an insurance company, a Lloyd's syndicate, a friendly society or a retirement benefit arrangement, any material implications for the policyholders of the insurance company or syndicate, the members of the friendly society or the beneficiaries of the retirement benefit arrangement, as the case may be.
3.6 Where a member provides reserved advice, the member must ensure that the client is aware of:
  • the name and professional qualifications of the member providing the advice,
  • the name of the member's firm,
  • the scope, purpose and terms of reference of the advice provided by the member.

If the member has cause to believe that a third party will have access to written reserved advice, in the same form in which it was originally provided to the member's client then the information listed above and the client's name must both be contained within that advice.
3.7 A member giving advice which is formulated in the interests of a particular client must ensure that:
  • the client is aware that the advice is of no broader applicability than intended by the member; and
  • the advice is not presented as if it were necessarily the advice that would be given to another client or to a third party whose objectives and requirements may be different.


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Page updated: 21 June 2008
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