I am pleased to introduce this consultation from the Regulatory Board of the Institute and Faculty of Actuaries (IFoA) on a proposal to make minor amendments to the Actuaries’ Code, particularly around Members’ duty to report convictions and other findings.
These proposed changes are updates to certain provisions of the Code to reflect the new IFoA Disciplinary Scheme, which will come into effect later this year, and which do not change the substance of the existing requirements.
The integrity of our Members is paramount, and in order to protect that integrity, we require Members, under the Code, to report to us relevant criminal convictions, court findings and professional discipline matters.
These changes will make sure that those important provisions are not impacted by changes to wording in the new Disciplinary Scheme.
We would value any feedback on the suggested changes and I look forward to hearing your views.
Neil Buckley
Chair of Regulatory Board
In October 2022, IFoA Members voted in favour of a new Disciplinary Scheme, which will come into effect in June 2023 (“the New Scheme”). The New Scheme introduces a more flexible and efficient disciplinary process.
The replacement of the existing Disciplinary and Capacity for Membership Schemes (“the Existing Scheme”) with the New Scheme necessitates minor consequential amendments be made to the Actuaries Code (“the Code”) relating to the requirements around disclosure of convictions and findings, as well as to update references to the title of the New Scheme.
The Code currently requires Members, at Principle 4.2, to disclose to the IFoA “any conviction, adverse finding, judgement or determination or disqualification of the type mentioned in rules 4.8 to 4.11 of the Disciplinary and Capacity for Membership schemes”.
The rules contained within Rules 4.8 to 4.11 of the Existing Scheme specify detailed circumstances which give rise to both conclusive proof and presumed proof, of facts for the purposes of any disciplinary action. Those rules will be replaced by Rule 6 in the New Scheme. However, the new Rule 6 is set out in more general terms and does not provide a list of specific judgements, findings etc. that should be reported.
In order to make sure that the same requirements continue to apply, it is proposed that Principle 4.2 of the Code be amended to summarise the types of circumstances in which it is appropriate to require Members to report, rather than including cross-references.
The Code currently requires, by referring to the terms of the Existing Scheme, certain judgments, findings, or disqualifications be reported to the IFoA. The aim of the proposed amendments to the Code, is to ensure that these requirements to report continue to apply to Members following the introduction of the New Scheme.
The aim of these proposals is to ensure that we are continuing to hold our Members to high standards of conduct, in the public interest, and that Members are clear as to the extent of their obligation to report while ensuring the Code remains principles-based.
It is not proposed to provide within the Code a complete list of the circumstances in which self-reporting should occur. As well as deviating from the principles-based nature of the Code, such an approach would risk missing out an unusual circumstance which should, nevertheless, be reportable.
Instead, it is proposed that the Code should summarise the circumstances that are relevant for the purposes of considering misconduct. This summary aims to ensure that irrelevant court findings (such as relating to personal disputes) or minor traffic offences, for example, need not be reported.
Self-reporting is essential to maintain the integrity of the profession. However, it does not follow that every situation reported will result in evidence of misconduct.
We believe it is important for us to provide further support and guidance for our Members on their professional requirements. We are therefore proposing, depending on the outcome of this consultation, to produce additional non-mandatory regulatory guidance for Members to assist them with their professional responsibilities.
We are proposing to amend the amplifications sitting under existing Principle 4 on Compliance as follows (changes are underlined):
Compliance
i) an adverse final determination, judgment or disqualification by a regulatory body acting in the exercise of its statutory or regulatory function;
ii) a court finding of fraud or dishonesty;
iii) a conviction of a criminal offence.
We are proposing to amend amplification 5.3, which sits under Principle 5 on Speaking Up to refer to the new Discipline Scheme as follows (changes are underlined):
5.3 Members must report to the Institute and Faculty of Actuaries, as soon as reasonably possible, any matter which appears to constitute Misconduct for the purposes of the Disciplinary and Capacity for Membership Schemes of the Institute and Faculty of Actuaries and/or a material breach of any relevant legal, regulatory or professional requirements by one of its Members.
We recognise that it is helpful for the Code to be supplemented by additional guidance for Members to help them understand its application. Therefore, we are also proposing to update the relevant sections of the Actuaries’ Code Guidance to help Members understand the sort of matters that we expect to be reported.
This consultation asks for Members’ views on the proposed changes and what further support (if any) they would like to see on this matter.
The proposed changes impact all Members of the IFoA.
The aim of the Code requirements is to ensure that all relevant circumstances which may affect a member’s integrity, are notified to the IFoA, who can then consider whether any further investigation would be appropriate.
The aim is to ensure proportionate, consistent, transparent, and targeted regulation, in a way that is principles-based and outcomes-focused.
The proposals are intended to replicate the same requirements as in the current Code provisions so there should be no different impact on Members. The aim is also to provide further clarification and support, through guidance of the circumstances in which Members are expected to self-report under Principle 4.
It is anticipated that the proposed new wording will apply the same requirements as the existing Principles 4 and 5.
The amendments follow the introduction of a new Disciplinary Scheme and there is no intention to change the obligations of Members.
The introduction of further guidance on Principle 4.2 will provide additional support and guidance for Members
To provide your response please use one of the following links:
The deadline for responses is 15 April 2023.
Once the consultation has closed, the IFoA will reflect upon the feedback and publish more specific details of any changes. There will also be a period allowed before the changes come into effect so that those affected can take steps to ensure they are able to comply with the new requirements.