The actuary complies with professional standards of any professional organization of which he or she is a member. The actuary complies with internal standards and guidelines of the social security institution, and/or institution to which he or she provides services. The actuary also follows any other guidelines relevant to the work which he or she is performing.
There exist several professional standards and guidance related to general professional behaviour, training, discipline issues and actuarial practice. Professional standards other than actuarial and accounting standards (e.g. professional standards for chartered financial analysts or risk specialists) have to be taken into account by actuaries because they can directly and indirectly affect their work.
At the international level, ISSA Guidelines and handbooks, the joint ISSA and ILO Quantitative Methods in Social Protection Series and ILO policy papers and internal guidelines provide international guidance on actuarial issues.
This guideline should be read together with Guidelines 49 and 51.
- Actuaries should comply with the continuing professional development requirements established by the international and/or national actuarial regulations in order to maintain and improve the quality of their work.
- The actuary should be aware of his or her role in respect of any work for social security institutions on policy decisions.
- Social security institutions should be aware of the disciplinary measures which may be triggered when professional standards or compliance with national legislation are not respected. The actuary should immediately inform the supervisory authority, where applicable, when he or she observes irregularities in respect of professional standards and/or legislation in the management of a social security scheme.
- Actuaries should rely on professional standards and other guidance to resolve possible conflicts between different standards (e.g. between accounting and actuarial standards) in their methodologies and/or approaches.
- Professional standards should aim to strengthen public trust in professional work.
- Professional standards should offer evidence of appropriate professional performance, constituting a basis for resolving any civil or professional conflict.
- Standards of practice should further assure regulatory authorities that they can depend on the actuarial profession to act effectively in the public interest.
- Professional standards can and should serve as standards and recommendations regarding continuing training for professional development.
- Professional standards should establish the role of actuaries with respect to their work for social security institutions on policy decisions that could affect the well-being of the population as well as the financial sustainability of social security schemes.
- Standards of practice coupled with provisions for disciplining members should show that the profession effectively governs itself and takes an active interest in protecting the public.
- Professional standards should provide guidance and recommendations on how to resolve possible conflicts where there are different standards, for example where accounting and actuarial standards refer to different methodologies and/or approaches.
- International guidelines and model standards, although they are not compulsorily followed until adopted nationally, should aim to provide guidance to actuaries.