The Professional Conduct Standards (hereinafter referred as Standards) identify the professional and ethical standards with which an actuary must comply whenever perform actuarial services. The annotations provide additional explanatory and advisory material to actuaries on how the rules have to be interpreted and applied. It is the responsibility of the actuary to be knowledgeable about, and to keep current with the revisions to the rules and annotations.

Professional integrity

Rule 1

An actuary shall perform his work honestly, professionally and carefully. He or she must fulfil the professional duty to the client or employer, and shall not act against the public interest.

Annotation 1.1

An actuary fulfils the professional responsibility to the public by acting in conformance with the Standards and by rendering of advice, recommendations or opinions based upon professional actuarial considerations.

Annotation 1.2

The Standards make no distinction between the actuaries engaged in different organisations (e.g. consulting companies, insurance companies, pension funds, et cetera). The word “client” always refers to the person or institution using the services of an actuary or the services of the firm or company for which an actuary is working. The word “employer” refers to the situation when an actuary is employed in insurance company or in any other institution.

Annotation 1.3

An actuary who has been found guilty of inconscientious performance of professional duties or performance that is in noncompliance with the Standards, or who has been convicted of any criminal act against administering funds, property or official duty, resulting in his or her unworthiness of performing actuarial profession, shall be treated like he or she has broken the Rule 1 of the Standards.

Qualification standards

Rule 2

An actuary shall act in a manner to uphold the reputation of the actuarial profession. An actuary shall be professionally impeccable and shall avoid inappropriate or unfair publicity and publicity that cannot be substantiated or is of a misleading nature.

Annotation 2.1

The actuarial profession refers to the rendering of advice, recommendations or opinions based upon actuarial considerations and includes also other services provided occasionally by an actuary to different clients (e.g. present or future client or employer).

Annotation 2.2

An actuary shall never take advantage of his or her connections with third party in order to achieve illegal or materially incorrect treatment for the benefit of the client or employer (e.g. present or future client or employer).

Rule 3

An actuary shall perform professional services only when he or she is qualified and appropriately experienced to do so

Annotation 3.1

The provisions of the Standards apply only to full members of the Slovenian Association of Actuaries.

Rule 4

An actuary is responsible for maintaining applicable practice standards whenever performing actuarial work and shall take into account any relevant Guidance Notes issued or endorsed by Slovenian Association of Actuaries and the status also of those Guidance Notes (e.g. mandatory, recommended practise).

Annotation 4.1

It is the professional responsibility of an actuary to observe applicable qualification standards and to keep current regarding changes in those standards.

 

Courtesy and cooperation

Rule 5

An actuary shall perform professional services with courtesy and respect. At work an actuary shall cooperate with other employees and shall represent interests of the client or employer.

Annotation 5.1

Significant differences in opinions among actuaries may arise, particularly regarding choices of assumptions and methods. Discussion about present differences should be conducted objectively and with courtesy, regardless to persons and opinions involved.

Annotation 5.2

An actuary may encounter a situation such that the best interest of the client or employer would be served by the actuary’s setting out an alternative opinion to one expressed by another actuary together with an explanation of the factors which lend support to the alternative opinion. Nothing in the Standards should be construed as preventing the actuary from expressing such an alternative opinion to the client or employer.

Annotation 5.3

A client or employer has the indisputable right of choosing a professional adviser. An actuary may perform work for any client irrespective of the fact that the client has also engaged other actuaries to advice on the same matter.

Confidentiality

Rule 6

The client’s information must be kept confidential. An actuary shall not disclose to another party any confidential information obtained through a professional assignment performed for the client or employer unless authorized to do so by the client or employer or required to do so by law.

Annotation 6.1

“Confidential information” refers to information not in the public domain of which the actuary becomes aware in conjunction with the rendering of professional services to a client or employer. It may include information of a proprietary nature, information which is legally restricted from circulation, or information which the actuary has reason to believe that the client or employer would not wish to be divulged.

 

Reporting

Rule 7

An actuary shall, in communicating his professional findings, show clearly that he or she is the source of the findings and that he or she is available to provide the client or employer with supplementary information and explanation about scope, methods and data.

Annotation 7.1

An actuary must in all opinions and findings given undoubtedly state the reference to actuarial or other sources for further information and explanations.

Rule 8

An actuary shall, in communicating his professional findings, identify the client for whom these findings are made and in what capacity the actuary serves.

Conflict of interest

Rule 9

An actuary shall not perform professional services involving an actual or potential conflict of interest, unless the actuary’s ability to act fairly is unimpaired and there has been full disclosure of the actual or potential conflict to all parties concerned.

Rule 10

An actuary shall not perform professional services when the actuary has reason to believe that they may be used to mislead, violate or evade the law.

Annotation 10.1

The actuary should recognize the risks of misquotation, misinterpretation or other misuse of his professional services.

Rule 11

When an actuary is asked to take on professional services previously provided by another actuary, he or she shall consider whether it is appropriate to consult with the previous provider of the professional service to ensure that it is suitable for him or her to take on this new responsibility.

Annotation 11.1

When accepting a new professional service, the actuary should assess the consequences of such acceptance. In some circumstances it may not be appropriate to consult the previous provider of the professional service due to the nature of the assignment, but it is for the actuary to weigh up the professional aspects involved in any particular case.

 

Collateral obligations

Rule 12

An actuary shall disclose, in writing and timely, to his client all sources of income related to any service on behalf of a client.

Annotation 12.1

An actuary who is not financially and organizationally independent concerning any matter related to the subject of an actuarial communication, should disclose to his superior any pertinent relationship which is not apparent.

Annotation 12.2

“Indirect compensation” is any material consideration received from any source in relation to an assignment for which the actuary provides professional services, other than direct remuneration for those services.

Rule 13

An actuary shall be subject to the disciplinary procedures prescribed in the rules of the Slovenian Association of Actuaries. The Actuary must accept any judgement or decree conferred to him or her by the Slovenian Association of Actuaries and, subject to the right of appeal within those rules, shall accept any judgement or the decision passed of any appeal procedure.

Annotation 13.1

Any noncompliance with provisions of the Standards that can cause severe consequences in terms of material or moral damage shall be deemed as a breach of the Standards.

Annotation 13.2

If an actuary becomes aware of an apparent breach of the Standards caused by another actuary, he or she must consult other actuaries and reach agreement with them on actions to be taken to ensure that the noncompliance is rectified. In the case that such agreement is not feasible, he or she is obliged to report the breach of the Standards to a corresponding body that shall deal with the matter and resolve it accordingly.

Rule 14

An actuary is subject to the provisions of the Standards whenever performing actuarial services.

Annotation 14.1

Should it happen that the requirements of law or regulations are in the conflict with the requirements of the Standards, the requirements of law and regulations prevail.

Rule 15

An actuary shall make use of membership titles and designations of the actuarial association only where that use conforms to the practices authorized by the actuarial association.

Annotation 15.1

The words “title” and “designation” mean any title or specific reference conferred by the association related to a actuary’s specific position within the association.