The actuary follows the relevant actuarial standards applicable in the country in which he or she works or those set by the actuarial association(s) of which he or she is a member. If the actuary is a member of an actuarial association which has not set relevant standards, the social security institution ensures that the actuary follows the International Standards of Actuarial Practice (ISAP) recommended by the International Actuarial Association (IAA) as model standards.
The purpose of actuarial standards is that intended users of actuarial work can have confidence that actuarial services are carried out professionally with due care, and produce comprehensive and understandable results relevant to users’ needs. The IAA publishes the International Standards of Actuarial Practice (ISAP) to provide model standards for its members associations to adopt or adapt, or to use as a guide for preparing consistent standards. ISAP also provide guidance to actuaries when actuarial associations have not produced their own standards.
Other standards and requirements in fields related to actuarial work such as financial and statistical reporting, accounting and legal standards should also be taken into account by actuaries, as described in Guidelines 37 and 39.
- An actuary should take into account in his or her work any applicable standards of practice of his or her own actuarial association, and/or standards set by the actuarial association in the country in which the work is to be carried out, in order to ensure the quality and relevance of the actuarial work he or she performs.
- If there are no relevant actuarial standards set by his or her association and/or by the actuarial association in the country in which the work is to be carried out, an actuary should consider following any relevant international standards. The actuary should seek advice from his or her actuarial association and from the IAA if in doubt regarding the appropriate standard to follow.
- If an actuary finds that, in his or her opinion, another actuary does not fully comply with the applicable actuarial standards in their work on social security, he or she shall discuss with that actuary to clarify the areas of divergence and advise changes to be made in order to fully comply with the actuarial standards. In case the divergences are not corrected despite his or her advice, the actuary should report the issue to the social security institution. In such a situation, the actuary should also refer to any reporting, whistle-blowing or disciplinary procedures set up by relevant actuarial associations.
- A social security professional who does not belong to an actuarial association and is involved in providing actuarial services to social security institutions should follow applicable actuarial standards, as well the code of conduct established by any national association or, in the absence of such an association, the minimum code of conduct required by the IAA of its full member associations.
- The social security institution should establish procedures to ensure that relevant actuarial standards as well as codes of conduct are followed with respect to the actuarial work for social security.
- The report on the actuarial valuation should specify the compliance with relevant actuarial standards.
- An actuary should ensure that he or she is familiar with relevant actuarial association and international actuarial standards affecting his or her work.
- The social security institution should ensure that actuaries perform their work in compliance with applicable actuarial association standards and, where no relevant standards have been set by their association, have regard to international actuarial standards, in particular ISAP 1 and ISAP 2 in the context of social security programmes.
- Compliance with actuarial standards enhances public and other stakeholders’ trust in the credibility and competence of actuarial work, reinforcing the fact that the profession serves the public in an effective and responsible way.