Frequently Asked Questions About Professionalism And Cross-Border Practice
We frequently receive questions about the professional obligations of U.S. actuaries practicing in Canada and about Canadian actuaries practicing in the United States. The American Academy of Actuaries (Academy), the American Society of Pension Professional and Actuaries, the Casualty Actuary Society, the Conference of Consulting Actuaries and the Society of Actuaries have entered into a Cross-Border Discipline Agreement (Cross-Border Agreement) with the Canadian Institute of Actuaries (CIA). That agreement establishes certain obligations of U.S. actuaries practicing in Canada and Canadian actuaries practicing in the United States. Below are responses to the most frequent questions we receive concerning cross-border practice.
For purposes of the questions below, the term “U.S. actuary” (or any plural of that term) refers to an actuary who is a member of at least one of the five U.S.-based actuarial organizations that is a party to the Cross-Border Agreement. The term “Canadian actuary” (or any plural of that term) refers to members of the CIA.
The responses to the questions below do not cover every situation that may arise under the Cross-Border Agreement. Rather, they are intended to address the questions that we most often receive about cross-border practice. The responses below are intended to provide general information and are not official constructions of the Cross-Border Agreement and do not alter, amend, modify or supersede its terms in any way.
II. What Rules Apply When Practicing in the United States or Canada
(2) the Canadian Standards of Practice applicable in Canada; and
(3) eligibility requirements of the CIA.
(2) the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (U.S. Qualification Standards); and
(3) the Actuarial Standards of Practice.
The answer will depend on where you are practicing. If you are practicing in Canada, as described above, then you must comply with the Canadian Rules of Professional Conduct, the Canadian Standards of Practice and the eligibility requirements of the CIA. If you are practicing in the United States, as described above, then you must comply with the Code of Professional Conduct, the U.S. Qualification Standards and Actuarial Standards of Practice.
III. Who Investigates and Resolves Complaints and Other Disciplinary Matters
When an actuary is practicing in Canada, as defined above, questions concerning that actuary’s practice are investigated by the CIA in accordance with its rules and bylaws.
Questions concerning an actuary’s practice in the United States will be investigated by the Actuarial Board for Counseling and Discipline (ABCD). If the actuary is a Canadian actuary but not a U.S. actuary, then the findings and recommendation of the ABCD will be reviewed by the Academy under its rules and bylaws as if the Canadian actuary were a member of the Academy. If the actuary is both a Canadian actuary and a U.S. actuary, then the findings and recommendation of the ABCD will be reviewed by each of the U.S.-based organizations of which the actuary is a member under its rules and bylaws.
In cases in which it is unclear whether a complaint, inquiry or incident should be investigated by the CIA or the ABCD, the CIA’s executive director and the ABCD’s legal counsel will discuss the matter and determine which body will investigate the complaint, inquiry or incident.
IV. Handling of Complaints, Inquiries and Investigations of U.S. Actuaries Practicing in Canada
The CIA will investigate the complaint or handle the inquiry using its rule and bylaws and will determine whether a violation of the Canadian Rules of Professional Conduct, Standards of Practice, or eligibility requirements has occurred.
No. Under the Cross-Border Agreement, a determination by the CIA that a U.S. actuary violated the applicable Rules of Professional Conduct, Standards of Practice, or eligibility requirements is conclusive. No U.S.-based actuarial organization reviews that determination. You may appeal a determination in Canada using the procedures available for appeal in Canada, but once the determination of a violation is made in Canada and all appeals are exhausted, that determination is conclusive in the United States with respect to violations determined to have occurred while practicing in Canada.
(2) The transcript of proceedings, if any, before the Appeal Tribunal;
(3) The findings of the Disciplinary Panel;
(4) The findings of the Appeal Panel, if any; and
(5) If requested by a U.S.-based organization all additional documents and evidence considered by the tribunals in making their decisions except for documents that are subject to the lawyer-client or other litigation privilege.
No. Under the Cross-Border Agreement, if you are a U.S. actuary but not a Canadian actuary, then any penalty imposed upon you for violation of the applicable Rules of Professional Conduct, Standards of Practice, or eligibility requirements while practicing in Canada is determined by each of the U.S-organizations of which you are a member or by whatever mechanism the U.S.-based organizations use when the U.S. actuary is a member of more than one such organization. Under the Cross-Border Agreement, each U.S.-based organization retains sole authority to determine the penalty to be imposed by that organization upon one of its members based upon a determination by the CIA that the member breached the applicable rules when practicing in Canada.
The CIA will not recommend any specific penalty be imposed upon a U.S. actuary based upon a violation of the applicable rules while practicing in Canada. The CIA may, however, recommend that U.S.-based organizations consider public discipline against a U.S. actuary for violation of the applicable rules while practicing in Canada.
Each U.S.-based organization will make its own penalty determination using its own rules and procedures and applying its own standards.
It is possible that certain conduct of a U.S. actuary while practicing in Canada may also violate applicable rules in the United States. For example, Precept 1 of the Code of Professional Conduct prohibits U.S. actuaries from engaging in dishonest, fraudulent, or deceitful conduct, making misrepresentations or otherwise committing acts that reflect adversely on the actuarial profession. If your conduct in violation of the applicable rules while practicing in Canada also falls into one of those forbidden categories, you could be subject to discipline by your U.S.-based organization for violation of the Code of Professional Conduct as well. Whether conduct found to violate the applicable rules while practicing in Canada gives rise to an independent violation of the rules applicable to U.S. actuaries will be made on a case-by-case basis and pursuant to the rules and procedures applicable in the United States.
V. Handling of Complaints, Inquiries and Investigations of Canadian Actuaries Practicing in the United States
The ABCD will investigate the question concerning a Canadian actuary’s practice in the United States using its rules and procedures about whether a violation of the Code of Professional Conduct, the U.S. Qualification Standards, or the Actuarial Standards of Practice has occurred. The Academy will review the ABCD’s investigation of that question as if the Canadian actuary were a member of the Academy.
No. Under the Cross-Border Agreement, a determination that a Canadian actuary violated the applicable Code of Professional Conduct, Qualification Standards, or Actuarial Standards of Practice made by the ABCD and reviewed by the Academy is conclusive. The CIA does not review that determination. You may appeal a determination of a violation of the applicable U.S. rules using the procedures available for appeal in the United States, but once the determination of a violation is made in the U.S. and all appeals are exhausted, that determination is conclusive in Canada with respect to violations determined to have occurred while practicing in the United States.
(2) A summary of the Academy’s conclusions; and
(3) Upon request from the CIA, all additional documents not subject to the lawyer-client privilege or the lawyer work product doctrine.
No. If you are a Canadian actuary but not a U.S. actuary, then any penalty imposed upon you for violation of the applicable Code of Professional Conduct, U.S. Qualification Standards, or Actuarial Standards of Practice while practicing in the United States is determined by the CIA. Under the Cross-Border Agreement, the CIA retains sole authority to determine the penalty to be imposed upon one of its members based upon a determination that the member breached the applicable rules when practicing in the United States.
No. U.S.-based organizations will not recommend any specific penalty be imposed upon a Canadian actuary based upon a violation of the applicable rules while practicing in the United States. The U.S.-based organizations may, however, recommend that the CIA consider public discipline against a Canadian actuary for violation of the applicable rules while practicing in the United States.
The CIA will make its own penalty determination using its own rules and procedures and applying its own standards.
It is possible that certain conduct of a Canadian actuary while practicing in the United States may also violate applicable rules in Canada. For example, Rule 1 of the Rules of Professional Conduct prohibits Canadian actuaries from engaging in dishonest, fraudulent, or deceitful conduct, making misrepresentations or otherwise committing acts that reflect adversely on the actuarial profession. If your conduct in violation of the applicable rules while practicing in the United States also falls into one of those forbidden categories, you could be subject to discipline by the CIA for violation of the Rules of Professional Conduct as well. Whether conduct found to violate the applicable rules while practicing in United States gives rise to an independent violation of the rules applicable to Canadian actuaries will be made on a case-by-case basis and pursuant to the rules and procedures of the CIA.