As members of any of the five U.S.-based actuarial organizations that has adopted the Code of Professional Conduct must know, Precept 3 of the Code states that: “An Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy applicable standards of practice.” For actuaries practicing in the United States, that means following the applicable actuarial standards of practice (ASOPs) promulgated by the Actuarial Standards Board (ASB).
By design, the ASB continually reviews, revises, and deletes as well as proposes new standards to reflect what the ASB finds to be appropriate actuarial practice. Consequently, as part of knowing and following the standards applicable to one’s work, it is important to be aware of changes to existing ASOPs, as well as new ASOPs, as the scope of actuarial services expands and evolves. As Annotation 3.1 of the Code states, “It is the professional responsibility of an Actuary to observe applicable standards of practice … and to keep current regarding changes in these standards.” Developing this awareness includes knowing about the exposure stage, where actuaries and other interested parties have the chance to comment on all proposed changes to existing ASOPs and new ASOPs.
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Up to Code - May/June 2018, Allan W. Ryan