Rule 3 – Standards of Practice
A member shall ensure that professional services performed by or under the direction of the member meet applicable standards of practice.
Making sure actuaries are able to deliver good work
Rule 3 expects members to keep current regarding accepted actuarial principles. This means complying with the applicable standards of practice of a recognized actuarial organization overseeing the jurisdiction for which their professional services are performed.
Why Rule 3 is important
Clearly outlines responsibilities
Establishes the framework and parameters for actuarial work and makes it easier for members to understand their responsibilities and act accordingly.
Ensures a minimum
standard of quality
Standards of practice introduce best practices and technical rigor to reduce errors, narrow the range of practice and improve the credibility of the resulting work.
Builds trust
Reassures clients, employers and stakeholders that they can confidently rely on information and advice from members to inform responsible decision-making.
Makes it easier to evaluate and compare
Consistently applied standards of practice ensure the use of best practices and uniform methods which makes it easier to evaluate and compare reports and analyses across the profession.
Facilitates transparency
Standards of practice promote openness in professional processes and how information and recommendations are documented.
Keeps the profession current
Standards that evolve with new research and technology help drive innovation while maintaining a consistent foundation for performance.
What Rule 3 means for members
It is your responsibility to ensure compliance
You are responsible for ensuring that you and all those who work under you meet the applicable standards of practice.
Know which standards are applicable
CIA Bylaws (bylaw 5.9.5) and Standards of Practice (paragraph 1160.03) set out how to determine which standards apply to professional services being performed.
Be aware of standards by jurisdiction
You are responsible for meeting and staying up to date on standards of practice set out by a recognized actuarial organization where you provide professional services.
Know how to determine
applicable jurisdiction
Your physical location is irrelevant. The jurisdiction is determined by the ultimate purpose of the services being performed and where they are intended for use.
Take steps to avoid non-compliance
You are expected to take all reasonable steps to avoid being placed in a position where you are unable to comply with the applicable standards of practice.
