We have identified, through stakeholder engagement, some questions that Members may have in respect of these proposals. We address these questions below which we hope will assist you with your consideration(s).
As the Actuaries' Code applies to all IFoA Members, any changes will affect Members across the world. The IFoA recognises that different countries have different laws and different cultures. In asking Members to have respect for everyone, and encourage diversity, equity and inclusion, we are NOT asking Members to act in contravention of the law.
The IFoA believes that all Members, wherever they are based, should show respect to everyone, regardless of individual attributes, background, ability, or status.
How an individual Member is able to encourage diversity, equity and inclusion will depend upon each individual’s circumstances, and this will include the country or countries in which they carry out actuarial work.
Within the wording of the proposed new requirements, the obligation to ‘encourage’ DEI is suggested as a ‘should’ requirement, rather than a ‘must’, in recognition that there might be circumstances in which non-compliance is reasonably justified.
The IFoA will not prescribe what actions Members need to take to encourage diversity, equity and inclusion. Each Member has different circumstances, including job role, seniority, and location, and accordingly, how each Member fulfils this obligation will be different.
If the changes are approved, non-mandatory guidance will be published before the requirements come into effect to help Members recognise good practice in respect of diversity, equity and inclusion.
Examples of ways in which Members might be able to encourage DEI will be set out in that non-mandatory guidance.
The proposed changes to the Code are aimed at demonstrating clearly to Members the IFoA’s expectations in respect of Members’ behaviour relating to DEI, and are not aimed at increasing the volume of disciplinary investigations into Members’ conduct.
The test applied to determine when Members risk being subject to a disciplinary investigations process is if their behaviour appears to amount to ‘misconduct’.
Misconduct is defined in the IFoA’s Disciplinary Scheme as acts or omissions which fall ‘significantly short of the standards of behaviour, integrity, competence or professional judgement which other members, or the public, might reasonably expect of a Member’.
Therefore, individual Members’ behaviour, for the purposes of disciplinary proceedings, is judged against the behaviour reasonably expected of all Members. The assessment of misconduct applied in disciplinary proceedings will consider the requirements set for Members in the Code and other applicable professional standards.
Whilst this might include the requirements around DEI in the Code if those are relevant in the particular circumstances of a case, there is a high threshold for establishing 'misconduct' and it is unlikely that disciplinary action will result against a Member solely because they have failed to encourage DEI. It is however possible that a Member’s failure to encourage DEI in a professional setting might form part of a wider consideration of that Member’s actions or behaviours, which together evidence a course of conduct that appears to amount to misconduct.
The proposed change to Principle 5 of the Actuaries’ Code – Speaking Up, requires Members to speak up if they believe that others are being excluded or treated unfairly.
As with the existing principle 5.2, this suggested addition asks Members to be leaders in their place of work, and to challenge particular behaviours of others.
The IFoA will not prescribe all of the circumstances in which it would expect Members to speak up; nor will it dictate who members should speak up to; or how they should speak up.
It is also proposed that this will be a ‘should’ requirement, rather than a ‘must' requirement, reflecting that there will be circumstances in which it is justified not to speak up. That is consistent with the wider Speaking Up principle in the Code.
Non-mandatory guidance will be produced to help members recognise situations where this principle might apply, and how Members may be able to speak up.
Non-mandatory guidance will be published to assist Members in understanding any changes to the Code and how these affect individual Members. In addition to guidance, support will be made available through webinars, seminars, and events.
Support is also available to members who have professional queries through the IFoA’s Professional Support Service.