1. Course on Professionalism Code of Professional Conduct and Code of Professional Ethics for Candidates

2. 2 Code of Professional Conduct Effective: May 9, 1993, Amended November 12, 2000 Effective: May 9, 1993, Amended November 12, 2000 Similar to that used by all other professional actuarial organizations - it provides a universal definition of acceptable behavior Similar to that used by all other professional actuarial organizations - it provides a universal definition of acceptable behavior Alleged violations are investigated by the Canadian Institute of Actuaries for actuarial practice in Canada or the ABCD, elsewhere. Alleged violations are investigated by the Canadian Institute of Actuaries for actuarial practice in Canada or the ABCD, elsewhere.

3. 3 Code of Professional Conduct Categorized into 11 Divisions with 14 “Precepts” and 23 “Annotations”: Categorized into 11 Divisions with 14 “Precepts” and 23 “Annotations”: “The Precepts identify the professional and ethical standards with which an actuary must comply…” “The Precepts identify the professional and ethical standards with which an actuary must comply…” “The Annotations provide explanatory, educational and advisory material…on how the precepts are to be interpreted and applied” “The Annotations provide explanatory, educational and advisory material…on how the precepts are to be interpreted and applied” “An Actuary must be familiar with, and keep current with, revisions to the code of professional conduct, its precepts and annotations” “An Actuary must be familiar with, and keep current with, revisions to the code of professional conduct, its precepts and annotations”

4. 4 Key Definitions within Code Actuary Actuary A member of an organization that has adopted the Code (e.g. CAS) A member of an organization that has adopted the Code (e.g. CAS) Principal Principal Client or employer of Actuary Client or employer of Actuary Actuarial Services Actuarial Services Provided to Principal by individual acting in the capacity of an actuary Provided to Principal by individual acting in the capacity of an actuary

5. 5 Key Definitions within Code Actuarial Communication Actuarial Communication Written, oral, or electronic issued by Actuary with respect to Actuarial Services Written, oral, or electronic issued by Actuary with respect to Actuarial Services Confidential Information Confidential Information Information not in public domain obtained as a result of providing Actuarial Services to a Principal Information not in public domain obtained as a result of providing Actuarial Services to a Principal

6. 6 Key Definitions within Code Law Law Statutes, regulations, judicial decisions, and other statements having legally binding authority Statutes, regulations, judicial decisions, and other statements having legally binding authority Recognized Actuarial Organization Recognized Actuarial Organization An organization that has been accepted for full membership in the International Actuarial Association or a standards setting, counseling, or discipline body to which authority has been delegated by such an organization An organization that has been accepted for full membership in the International Actuarial Association or a standards setting, counseling, or discipline body to which authority has been delegated by such an organization

7. 7 Professional Integrity PRECEPT 1: PRECEPT 1: An Actuary shall act honestly, with integrity and competence, and in a manner to fulfill the profession's responsibility to the public and to uphold the reputation of the actuarial profession

8. 8 Qualification Standards PRECEPT 2: PRECEPT 2: An Actuary shall perform Actuarial Services only when the Actuary is qualified to do so on the basis of basic and continuing education and experience and only when the Actuary satisfies applicable qualification standards

9. 9 Qualification Standards ANNOTATION 2-1: ANNOTATION 2-1: It is the professional responsibility of an Actuary to observe applicable qualification standards that have been promulgated by a Recognized Actuarial Organization for the jurisdictions in which the Actuary renders Actuarial Services and to keep current regarding changes in these standards.

10. 10 Standards of Practice PRECEPT 3: PRECEPT 3: An Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy applicable standards of practice

11. 11 Standards of Practice ANNOTATION 3-1: ANNOTATION 3-1: It is the professional responsibility of an Actuary to observe applicable standards of practice that have been promulgated by a Recognized Actuarial Organization for the jurisdictions in which the Actuary renders Actuarial Services and to keep current regarding changes in these standards.

12. 12 Communications and Disclosure PRECEPT 4: An Actuary who issues an Actuarial Communication shall take appropriate steps to ensure that the Actuarial Communication is clear and appropriate to the circumstances and its intended audience and satisfies applicable standards of practice

13. 13 Communications and Disclosure ANNOTATION 4-1: An Actuary who issues an Actuarial Communication shall ensure that the Actuarial Communication clearly identifies the Actuary as being responsible for it.

14. 14 Communications and Disclosure PRECEPT 5: PRECEPT 5: An Actuary who issues an Actuarial Communication shall, as appropriate, identify the Principal(s) for whom the Actuarial Communication is issued and describe the capacity in which the Actuary serves

15. 15 Communications and Disclosure PRECEPT 6: PRECEPT 6: An Actuary shall make appropriate and timely disclosure to a present or prospective Principal of the sources of all direct and indirect material compensation that the Actuary or the Actuary's firm has received, or may receive, from another party in relation to an assignment for which the Actuary has provided, or will provide, Actuarial Services for that Principal. The disclosure of sources of material compensation that the Actuary's firm has received, or may receive, is limited to those sources known to, or reasonably ascertainable by, the Actuary

16. 16 Conflict of Interest PRECEPT 7: PRECEPT 7: An Actuary shall not knowingly perform Actuarial Services involving an actual or potential conflict of interest unless: the Actuary’s ability to act fairly is unimpaired; the Actuary’s ability to act fairly is unimpaired; there has been disclosure of the conflict to all present and known prospective Principals whose interests would be affected by the conflict; and there has been disclosure of the conflict to all present and known prospective Principals whose interests would be affected by the conflict; and all such Principals have expressly agreed to the performance of the Actuarial Services by the Actuary all such Principals have expressly agreed to the performance of the Actuarial Services by the Actuary

17. 17 Control of Work Product PRECEPT 8: An Actuary who performs Actuarial Services shall take reasonable steps to ensure that such services are not used to mislead other parties

18. 18 Confidentiality PRECEPT 9: An Actuary shall not disclose to another party any Confidential Information unless authorized to do so by the Principal or required to do so by Law PRECEPT 9: An Actuary shall not disclose to another party any Confidential Information unless authorized to do so by the Principal or required to do so by Law

19. 19 Courtesy and Cooperation PRECEPT 10: An Actuary shall perform Actuarial Services with courtesy and professional respect and shall cooperate with others in the Principal's interest

20. 20 Advertising PRECEPT 11 : An Actuary shall not engage in any advertising or business solicitation activities with respect to Actuarial Services that the Actuary knows or should know are false or misleading PRECEPT 11 : An Actuary shall not engage in any advertising or business solicitation activities with respect to Actuarial Services that the Actuary knows or should know are false or misleading

21. 21 Titles and Designations PRECEPT 12 An Actuary shall make use of membership titles and designations of a Recognized Actuarial Organization only in a manner that conforms to the practices authorized by that organization

22. 22 Violations of the Code of Professional Conduct PRECEPT 13: An Actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary should consider discussing the situation with the other Actuary and attempt to resolve the apparent violation. If such discussion is not attempted or is not successful, the Actuary shall disclose such violation to the appropriate counseling and discipline body of the profession, except where the disclosure would be contrary to law or would divulge Confidential Information PRECEPT 13: An Actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary should consider discussing the situation with the other Actuary and attempt to resolve the apparent violation. If such discussion is not attempted or is not successful, the Actuary shall disclose such violation to the appropriate counseling and discipline body of the profession, except where the disclosure would be contrary to law or would divulge Confidential Information

23. 23 Violations of the Code of Professional Conduct PRECEPT 14: An Actuary shall respond promptly, truthfully, and fully to any request for information by, and cooperate fully with, an appropriate counseling and disciplinary body of the profession in connection with any disciplinary, counseling or other proceeding of such body relating to the Code. The Actuary's responsibility to respond shall be subject to applicable restrictions on Confidential Information and those imposed by Law PRECEPT 14: An Actuary shall respond promptly, truthfully, and fully to any request for information by, and cooperate fully with, an appropriate counseling and disciplinary body of the profession in connection with any disciplinary, counseling or other proceeding of such body relating to the Code. The Actuary's responsibility to respond shall be subject to applicable restrictions on Confidential Information and those imposed by Law

24. 24 Canadian Rules of Professional Conduct The Rules of Professional Conduct in Canada require that certain procedures must be followed when a member is aware of a violation of the Rules The Rules of Professional Conduct in Canada require that certain procedures must be followed when a member is aware of a violation of the Rules Affirmative responsibility to act to correct violation Affirmative responsibility to act to correct violation No confidentiality agreement or employment protections exist No confidentiality agreement or employment protections exist

25. 25 Code of Professional Conduct in Asia Singapore Singapore The Singapore Actuarial Society (SAS) requires all members to adhere to its Code of Professional Conduct The Singapore Actuarial Society (SAS) requires all members to adhere to its Code of Professional Conduct There are 23 statements grouped into 6 categories: General, Actuarial Advice, Independence, Communication of Actuarial Advice, Publicity, Discipline There are 23 statements grouped into 6 categories: General, Actuarial Advice, Independence, Communication of Actuarial Advice, Publicity, Discipline These statements are very similar to those found in the CAS’s Code of Professional Conduct These statements are very similar to those found in the CAS’s Code of Professional Conduct Malaysia Malaysia The Actuarial Society of Malaysia (ASM) has a Professional Code of Conduct The Actuarial Society of Malaysia (ASM) has a Professional Code of Conduct The code is made up of 12 precepts that are very similar to those found in the CAS’s Code of Professional Conduct The code is made up of 12 precepts that are very similar to those found in the CAS’s Code of Professional Conduct

26. 26 Code of Professional Conduct in Asia Mainland China Mainland China The Chinese Association of Actuaries (CAA) is under the regulation of the Chinese Insurance Regulatory Commission (CIRC). This is very different from the US where only the “business of insurance” is regulated by the insurance authority. In China, the “entity” of insurance is regulated by the insurance authority. This includes the conduct of an actuary. The Chinese Association of Actuaries (CAA) is under the regulation of the Chinese Insurance Regulatory Commission (CIRC). This is very different from the US where only the “business of insurance” is regulated by the insurance authority. In China, the “entity” of insurance is regulated by the insurance authority. This includes the conduct of an actuary. There is no official “code of conduct” but the rules of an actuary’s conduct are embedded in insurance regulations. Hence, violation of these rules will incur more serious consequences compared to violation of an actuarial society’s code of conduct There is no official “code of conduct” but the rules of an actuary’s conduct are embedded in insurance regulations. Hence, violation of these rules will incur more serious consequences compared to violation of an actuarial society’s code of conduct Therefore it is important for an actuary practicing in mainland China to check the latest regulations regarding actuarial work Therefore it is important for an actuary practicing in mainland China to check the latest regulations regarding actuarial work

27. 27 Code of Professional Conduct in Asia Hong Kong Hong Kong The Actuarial Society of Hong Kong has a Professional Conduct Code (PCC) The Actuarial Society of Hong Kong has a Professional Conduct Code (PCC) There are 19 statements grouped into 5 categories: General, Independence, Formulation of Advice, Appointment of New Adviser, Relations with Other Actuaries and Publicity There are 19 statements grouped into 5 categories: General, Independence, Formulation of Advice, Appointment of New Adviser, Relations with Other Actuaries and Publicity These statements are very similar to those found in the CAS’s Code of Professional Conduct These statements are very similar to those found in the CAS’s Code of Professional Conduct Taiwan Taiwan The Actuarial Institute of Chinese Taipei has a Code of Conduct The Actuarial Institute of Chinese Taipei has a Code of Conduct Its precepts and annotations are very similar to those found in the CAS’s Code of Professional Conduct Its precepts and annotations are very similar to those found in the CAS’s Code of Professional Conduct

28. 28 Code of Professional Conduct in Asia Thailand Thailand The Society of Actuaries of Thailand (SOAT) has a Code of Professional Conduct that is identical to the CAS’s Code The Society of Actuaries of Thailand (SOAT) has a Code of Professional Conduct that is identical to the CAS’s Code India India The Actuarial Society of India has a set of Professional Conduct Standards (PCS) that is substantially similar to the CAS’s Code The Actuarial Society of India has a set of Professional Conduct Standards (PCS) that is substantially similar to the CAS’s Code The PCS is made up of 9 sections: General, Professional Standards, Standards for Advice, Breach of Professional Guidance, Conflict of Interest, Financial Interests, Appointment of New Adviser, Relations with Other Members, Publicity The PCS is made up of 9 sections: General, Professional Standards, Standards for Advice, Breach of Professional Guidance, Conflict of Interest, Financial Interests, Appointment of New Adviser, Relations with Other Members, Publicity

29. 29 Code of Professional Conduct in Asia Comparison Table of Precepts, Annotation and Statements CAS / ThailandSingaporeMalaysiaHong KongIndia 1Professional Integrity General Qualification Standards Standards of Professional Conduct Professional Standards 2Standards of Practice Actuarial AdviceStandards for Actuarial Advice Formulation of Advice Standards for Advice Communications and Disclosure Communication of Actuarial Advice Transmission of Actuarial Advice ConfidentialityClient Relationships Relationship with Client Conflict of Interest IndependenceConflict of Interest IndependenceConflict of Interest Control of Work Product Third Parties Financial Interests

30. 30 Code of Professional Conduct in Asia Comparison Table of Precepts, Annotation and Statements CAS / ThailandSingaporeMalaysiaHong KongIndia 3Courtesy and Cooperation Relations with Other Actuaries Relations with Other Members AdvertisingPublicity Appointment of New Adviser 4Titles and Designations Descriptions 5Violations of the Code of Professional Conduct DisciplineBreach of Professional Guidance

31. Code of Professional Ethics for Candidates

32. 32 Code of Professional Ethics for Candidates Effective with the May 2008 exams Effective with the May 2008 exams Similar to Code of Conduct for members Similar to Code of Conduct for members CAS now consistent with other societies (e.g. CPCU and CFA Institute) in requiring candidates to abide by ethical standards CAS now consistent with other societies (e.g. CPCU and CFA Institute) in requiring candidates to abide by ethical standards New discipline procedure also developed as the ABCD does not have jurisdiction over candidates New discipline procedure also developed as the ABCD does not have jurisdiction over candidates

33. 33 Code of Professional Ethics for Candidates Similarities to Code of Conduct Similarities to Code of Conduct Rule 1: Act honestly and with integrity and competence, to uphold the reputation of the actuarial profession. (Precept 1) Rule 1: Act honestly and with integrity and competence, to uphold the reputation of the actuarial profession. (Precept 1) Rule 2: Not engage in any professional conduct involving dishonesty, fraud, deceit, or misrepresentation or commit any act that reflects adversely on the actuarial profession. (Precept 1) Rule 2: Not engage in any professional conduct involving dishonesty, fraud, deceit, or misrepresentation or commit any act that reflects adversely on the actuarial profession. (Precept 1) Rule 3: Perform services with courtesy and respect (Precept 10) Rule 3: Perform services with courtesy and respect (Precept 10)

34. 34 Code of Professional Ethics for Candidates Similarities to Code of Conduct (cont.) Similarities to Code of Conduct (cont.) Rule 5: Prohibits use of ACAS or FCAS designations until admitted to membership by CAS Executive Council (Precept 12) Rule 5: Prohibits use of ACAS or FCAS designations until admitted to membership by CAS Executive Council (Precept 12) Rule 6: Prohibits disclosure of confidential information unless authorized by Principal or required by law (Precept 9) Rule 6: Prohibits disclosure of confidential information unless authorized by Principal or required by law (Precept 9) Rule 7: Respond promptly/truthfully and cooperate with investigations (Precept 14) Rule 7: Respond promptly/truthfully and cooperate with investigations (Precept 14)

35. 35 Code of Professional Ethics for Candidates Differences from Code of Conduct Differences from Code of Conduct Areas where candidates cannot be held to the same standard as members, or areas related to exams Areas where candidates cannot be held to the same standard as members, or areas related to exams Rule 4: Adherence to the CAS Policy on Examination Discipline Rule 4: Adherence to the CAS Policy on Examination Discipline

36. 36 Code of Professional Ethics for Candidates Differences from Code of Conduct Differences from Code of Conduct Precepts not addressed by Candidate Code Precepts not addressed by Candidate Code  Precept 2: Qualification Standards  Precept 3: Standards of Practice  Precepts 4-6: Actuarial Communications  Precept 7: Conflict of Interest  Precept 8: Control of Work Product  Precept 11: Advertising  Precept 13: Discussing/Disclosing Violations