Standards & Guidance
Actuarial Standards
The U.S. actuarial profession has established three kinds of standards.
1. The Code of Professional Conduct
The Code of Professional Conduct identifies actuaries’ ethical responsibilities to the public, to clients and employers, and to the actuarial profession.
2. Actuarial Standards of Practice
The ASOPs provide a framework for performing professional assignments and offer guidance on recommended practices, documentation, and disclosure.
3. Qualification Standards
The Qualification Standards specify requirements for basic education, experience, and continuing education that must be met by actuaries issuing statements of actuarial opinion (SAOs).
The three sets of standards are interrelated, as is reflected in the Code of Professional Conduct. The Code’s purpose, stated in its introduction, is “to require actuaries to adhere to the high standards of conduct, practice, and qualifications of the actuarial profession, thereby supporting the actuarial profession in fulfilling its responsibility to the public.” The Code specifically requires actuaries to comply with applicable ASOPs and Qualification Standards.
The ABCD investigates complaints alleging violations of the Code by members of participating organizations. It also responds to requests for guidance from actuaries who want help interpreting the Code or the standards of practice.
Guidance for Actuaries
In addition to considering cases involving possible violations of the Code of Professional Conduct, the ABCD provides confidential guidance to actuaries who ask for help in interpreting the Code and/or actuarial standards of practice (ASOPs) and U.S. Qualification Standards.
In most cases, responses to requests for guidance are informal. Generally, an individual ABCD member with the appropriate background answers an informal inquiry. These responses represent the individual ABCD member’s considered opinion, not necessarily the views of the entire ABCD.
In other cases, the actuary requesting guidance may ask for an expression of opinion by the entire ABCD, which the ABCD has the option to decline.
The ABCD also responds to requests for guidance from actuarial students.
How to request guidance
Most requests for guidance are made by email or by phone to the ABCD office (lee@actuary.org, 202.785.7885) or to an individual ABCD member.
Whether the request comes to the ABCD office or directly to an ABCD member, informal guidance is generally provided within a few days, and sometimes immediately. In unusual circumstances, it may take longer.
Before you request guidance
Please see Section I of the ABCD’s Rules of Procedure, which discusses
- the difference between informal guidance and an expression of opinion by the entire ABCD
- confidentiality considerations
- the various ways the ABCD responds to requests for guidance
Published guidance by the ABCD
- Pension-related guidance provided December 29, 2010, in response to a request for guidance from the Academy’s Pension Practice Council
- ASOP 6 guidance provided November 24, 2015
Discussion papers
- Discussion papers are primarily written and developed through the Academy’s Committee on Professional Responsibility to promote actuarial professionalism, including knowledge of standards of conduct, qualification, and practice within the profession. This list of discussion papers suggest ways to assist actuaries in improving their daily practice and increasing their awareness of professionalism. Discussion papers are not promulgated by any standard-setting body and are not binding upon any actuary. Read them here.
Questions?
If you have any questions about requesting guidance, contact ABCD Counsel Ed Lee at 202-223-8196 or lee@actuary.org.