Defending Actuaries FAQs

Actuaries’ duties to report conduct and speak up - FAQs
 

Deciding how and when to report conduct to your employer or a regulator can be challenging. Actuaries have obligations under the Actuaries’ Code to report their own conduct and conduct of other actuaries to the Institute and Faculty of Actuaries (IFoA). Actuaries are also required to speak up about unethical and unlawful actions. Often a failure to disclose or a delayed disclosure can make matters worse. It is therefore important to consider your options early and take advice when needed.

If you need help with reporting conduct to the IFoA, speaking up or are involved in an IFoA or FRC disciplinary investigation, please contact our specialist actuary lawyers who can discuss the issue with you in confidence.

What conduct must I report to the IFoA?

There are some specific matters that an actuary must report promptly to the IFoA:

A conviction of a criminal offence

All criminal convictions must be reported to the IFoA, regardless of the seriousness of the conviction and the jurisdiction. However more minor offences that are dealt with by a fixed penalty notice or an administrative fine do not need to be reported to the IFoA. This means that less serious conduct, such as minor speeding offences and rail fare evasion, may not need to be reported. However, if there has been a public court hearing, it is likely that you will need to tell the IFoA about it.

IFoA members should be aware that the requirement to report a criminal matter is triggered by the conviction. Therefore, if you have been arrested or charged with a criminal offence, you do not need to tell the IFoA. However, if you are regulated by another regulator, such as the FCA, you may need to make an earlier disclosure.

Our specialist lawyers are experienced in advising professionals who are subject to criminal proceedings.

A court finding of fraud or dishonesty

IFoA members must disclose a determination by any court where they are found to have acted fraudulently or dishonestly. This includes a finding by a civil court and a lower-level Tribunal.

An adverse final determination, judgement or disqualification by a regulatory body acting in the exercise of its statutory or regulatory function

If a finding is made against you by another regulator, such as the FCA, FRC, TPR, or another actuarial body, such as the Actuaries Institute in Australia or the Actuarial Society of South Africa, you must tell the IFoA.

The duty to report does not specifically require employment disciplinaries or other employment issues to be reported to the IFoA, however there may be benefit in proactively engaging with the IFoA on these issues.

What are my speaking up obligations?

IFoA members are expected to speak up about unethical and unlawful conduct. This requirement has recently been expanded to include speaking up about the unfair treatment and unreasonable exclusion of others. The requirement to “speak up” is very wide, and can include whistleblowing, challenging the behaviour of others and reporting conduct to an employer or regulator. Where you have taken steps to speak up, it is often helpful to keep a record of this.

The speaking up obligations recognise that there may be situations where an IFoA member is not able to speak up. For example, there may be legal provisions which prevent the member disclosing certain information.  IFoA members should seek advice if they are not sure about whether they are required to speak up.

IFoA members are also required to report the conduct of other actuaries to the IFoA as soon as reasonably possible. This is a “must” requirement in the Actuaries’ Code, therefore there are no exceptions. “Misconduct” is defined as conduct which falls significantly short of the standards expected of an IFoA member and can include non-professional conduct where the member’s actions could reasonably be considered to reflect upon the profession.

What will happen if I report conduct to the IFoA?

Reporting conduct to the IFoA doesn’t necessarily mean that there will be a disciplinary outcome.

If you are reporting your own conduct, the IFoA will first consider whether any action needs to be taken. Further action could include a warning letter or a full disciplinary investigation, with the potential for a disciplinary sanction to be imposed. It is therefore important to carefully consider what information you provide in your initial self-disclosure. We can advise on how best to communicate a conviction, determination, finding or other conduct to the IFoA and, if a disciplinary investigation is initiated, we can guide you through that process.

If you are reporting the conduct of another IFoA member, the IFoA will first consider whether the complaint meets certain assessment criteria, before deciding whether to investigate the referral.  If the conduct is unlikely to amount to misconduct; there is no reasonable prospect of proving the conduct; or if the matter needs to be considered by another court or body first, then the IFoA may decide not to investigate the referral. However, this is a relatively low test and most complaints will be referred for a full investigation.

If I report someone else’s conduct, will I need to be involved in the disciplinary investigation?

If you report someone else’s conduct to the IFoA, you will not have a formal role in the investigation, however you may be asked to provide further information or documents. If you are a member of the IFoA, you have an obligation to comply with the investigation, however this obligation does not extend to non IFoA members and firms.

Your level of involvement in an investigation will depend upon the nature of the allegation. If the allegation proceeds to a Disciplinary Tribunal Panel hearing, you may be required to provide a witness statement and give evidence at a public hearing.

The member who is the subject of the complaint will be aware of your involvement and will see the information and documentation you provide.

Can I report issues anonymously?

If you make a formal complaint about an IFoA member, the IFoA member will be notified of the complaint and will be given your name as the referrer. The IFoA member will also see all documentation and correspondence relevant to the complaint, including your correspondence with the IFoA.

If you would prefer to make an anonymous complaint, you should make this clear. Anonymous complaints are not automatically referred for disciplinary investigation. The IFoA will consider whether the matter should be referred for a disciplinary investigation. This will depend on the nature of the alleged conduct and availability of evidence.