Member Code of Conduct of the Slovak Society of Actuaries
Note: Underlined terms are defined in Part 2 Definitions.
Part 1. General Principles
1.1 Purpose
1.1.1 This Member Code of Conduct of the Slovak Society of Actuaries (the "Code") provides guidelines on the professional conduct expected of Members in performing Professional Services, in order to give the Designated Users of such services confidence that the services are performed professionally and with due care.
1.1.2 The Code also provides guidance on Members’ expected conduct in a broader context, as described in more detail in Part 1.2 Scope.
1.2 Scope
1.2.1 With respect to the principles set out in Part 3:
(a) All Members are expected to adhere to Principle A (Integrity) in the course of their work as well as in other conditions where their conduct could reasonably be associated with the actuarial profession.
Actuarial services
(b) All Members are expected to adhere to Principles B to E: Professional Competence, Compliance, Impartiality and Communication when performing Professional Services, whether for remuneration or free of charge.
Other services
(c) When performing other than Professional Services, whether for remuneration or free of charge, Members shall determine by Professional Judgment whether, and if so to what extent, it is appropriate to comply with the substance and purpose of Principles B to E: Professional Competence, Compliance, Impartiality and Communication, taking into account the legitimate expectations of the Designated Users of the work performed, the nature of the work performed, all standards applicable to the work performed and all other relevant factors.
Supporting roles
(d) Members may act in a supporting position as a collaborator or subcontractor, where another person has ultimate responsibility for the work performed. For the avoidance of any doubt, Members in a supporting position are also expected to act in accordance with the Code within the meaning of par. 1.2.1 (a), (b) and (c), although it can reasonably be expected that the degree of responsibility for the relevant service, the extent of their work experience and circumstances will be taken into account when assessing their conduct under the Code.
Following the nature and purpose of the Code
(e) The Code does not serve as an exhaustive description of the conduct to be followed or avoided by a Member. Members are expected to follow the substance and purpose of the Code and not to interpret the Code in a literal sense.
1.2.2 For the purposes of this Code:
(a) A Member is normally expected to perform the above-stated activity unless the performance of such an activity would result in an inappropriate result or could be misleading. If the said activity is not performed, the Member shall notify the designated users of Professional Services of this fact and provide the reason why the activity was not performed,
(b) “Must” means that the above-stated activity is mandatory and failure to perform the obligation constitutes a violation of this Code.
1.2.3 Nothing in this Code requires a Member to act unlawfully or in contradiction to regulatory requirements. If there is any inconsistency between the Code and legal or regulatory requirements, then the legal or regulatory requirements take precedence over the Code. The term "legal or regulatory requirements" does not include contractual obligations.
Part 2. Definitions
The following are definitions of terms with the meaning relevant to the Member Code of Conduct of the Slovak Society of Actuaries ("SSA").
2.1. Member – any SSA member (all types of membership according to the SSA Statutes).
2.2 Designated User – a legal or natural person (usually the Contracting Authority) designated by the Member as the report user at the time when the member performs Professional Services.
2.3 Contracting Authority – the person who requires Professional Services. The Contracting Authority is usually the client or the employer of the Member.
2.4 Professional Judgment - the judgment of an actuary based on his/her actuarial (or other relevant) education and experience.
2.5 Professional Services - all services performed by a Member that relate to a pension scheme/fund, insurance/reinsurance undertaking/financial institution or financial transaction; and all other services performed by a Member on the basis of actuarial considerations and assessments.
Part 3 Principles
A. Integrity
A Member must act honestly and with integrity and according to the highest standards of integrity.
B. Competence and Care
A Member must perform Professional Services professionally, competently and with care.
C. Compliance
A Member must act in accordance with the relevant legal, regulatory and professional requirements.
D. Impartiality
Member must ensure that their Professional Judgment is not compromised, and cannot reasonably be seen to be compromised, by bias, conflict of interest, or the undue influence of others.
E. Communication
A Member must communicate appropriately and must meet all relevant reporting standards.
Part 4 Extension of Principles
The following information constitutes part of the Code and is provided to determine how, within the meaning of paragraph 1.2.1, Members are expected to interpret and apply the Principles in Part 3.
This information is not exhaustive. Members are expected to exercise Professional Judgment as to how and when it is necessary to ensure the application of the substance and purpose of the Code, instead of a literal interpretation of the text.
A. Integrity
A1 A Member must perform his/her work honestly and with integrity, responsibly, with appropriate knowledge, skills and care, while performing his/her obligations towards his/her Contracting Authority, always subject to the appropriate legal, regulatory and professional requirements.
A2 A Member must not act in a way that is likely to damage the reputation of the actuarial profession, whether on the basis of the work performed or in other situations in the context of which such conduct could reasonably be regarded as damaging the reputation of the actuarial profession.
A3 A Member may not
- Provide information,
- Be knowingly involved in providing information,
- Be involved in the promotion or award of the contract,
About which the Member knows or should know that
- Is materially incorrect or misleading,
- Contains statements or information/facts given as a result of negligence or omission,
- Does not provide or obscures the required information,
the resulting impression of which is materially misleading.
If a Member is aware that he or she is or has been associated with this information/fact, he/she shall take steps to ensure that he/she is not associated with such information/fact.
These provisions shall not apply to situations where a Member performs work on the basis of:
- Assumptions or methodologies that are predetermined by the Contracting Authority or another party, provided that, if the Member does not agree with such assumptions or methodologies, he/she shall state such a disagreement in a report to the Designated User, or
- Assumptions and methodology are prescribed by legal, regulatory or other professional requirements.
A4 A Member shows respect for and cooperates with other persons working for the same Contracting Authority.
A5 A Member being subject to legal, regulatory and professional obligations must respect the confidentiality and secrecy of the information obtained.
A6 If a Member is required to perform work previously performed by another person, the Member shall consider whether it is appropriate to consult the previous Professional Service provider to determine whether there are professional grounds for denying new liability.
B. Competence and Care
B1 A Member shall perform Professional Services carefully, thoroughly and on time.
B2 A Member must perform individual Professional Services only if:
- The Member is competent and has an appropriate level of relevant knowledge and experience,
- The Member shall act on the basis of advice and instructions from a person who has an appropriate level of relevant knowledge and experience and the Contracting Authority is aware of this fact, or
- The Member shall act under the direct control of another person who assumes professional responsibility for his/her work.
B3 A Member shall ensure, prior to the communication of the results of the work of Professional Services, that the results do not contain material errors, to the best of his/her knowledge and belief as well as the reasonable belief of the Member.
B4 A Member shall agree in advance with the Contracting Authority on the nature and content of the Member's responsibility, before commencing the provision of Professional Services.
C. Compliance
C1 A Member must perform his/her activities in a manner that fulfils the Member's responsibilities to the public by complying with applicable technical and professional standards and in compliance with applicable legislation. A Member must take into account all relevant codes, standards, guidelines and similar documents formally issued or approved by the actuarial companies of which he/she is a Member, taking into account their scope and binding nature (e.g., mandatory, recommended practice, etc.).
C2 The SSA Actuary may perform Professional Services abroad only if he/she is familiar with the financial market of the country for which he/she works. A Member shall inform the SSA Board about his/her activities abroad (if it represents more than 10% of the working time) and apply for membership in the actuarial association of that country.
C3 The action or inaction of a Member may be subject to disciplinary action under the SSA Disciplinary Procedures, and he/she has the right to appeal within such disciplinary action. However, he/she is obliged to accept a decision of proceedings at first instance or a decision at second instance - appeal proceedings.
D. Impartiality
D1 A Member may not engage in Professional Services that involve an actual or potential conflict of interest or involve a bias or appearance of a Member's bias that would call into question his/her capacity to act impartially and objectively. The Member shall clearly disclose information on actual or potential conflicts of interest or bias to the Professional Service Contracting Authority.
D2 A Member shall document to the Contracting Authority all sources of income which could affect his/her services for that Contracting Authority. A Member shall do so in writing in the form of a declaration and without undue delay (except in cases where the Contracting Authority is the employer of the Member, in which case there is no obligation to disclose the remuneration paid by the employer).
E. Communication
E1 A Member shall, in a timely manner and in a form and format that is proportional to the particular circumstances, communicate the results of his/her Professional Services and, where appropriate, the implications of the analyses and advice contained in the report in a way that is comprehensible to Designated Users, without concealing facts that would have adverse impacts on Designated Users and relate to the subject of cooperation with the Professional Service Contracting Authority.
E2 A Member shall provide the following when communicating the results of his/her Professional Services:
- That the Member is the author of the communication, e.g. a report,
- That the Member assumes responsibility for the results, indicating reservations marked, if any,
- Indicate the position in which the Member is acting,
- Indicate the Designated User (s) of all analyses and recommendations included in the communication, e.g. a report; state the scope and purpose of the task, and
- Indicate to what extent and how additional information and explanations can be obtained from the Member or another person. The above-stated requirements do not have to be met by the Member if he/she considers them inappropriate. In such a case, the derogation from the requirements does not create a disclosure requirement under paragraph 1.2.2 a).
This Code was approved at the General Assembly of the Slovak Society of Actuaries held on 11 December 2017 and enters into force on 1 January 2018. With the entry into force of this Code, the previous Code approved on 13 September 2005 shall be repealed.
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Code of conduct for members of the SSA (2005-2017)
The Slovak Society of Actuaries (henceforth referred to as the Society) in accordance with 2 paragraph 2 of the Statutes of the Society issues this Code of Conduct for Members of the Society (henceforth referred to as the Code of Conduct). The Code of Conduct applies to each Member of the Society, irrespective of their category of membership as defined in 5 of the Statutes of the Society, (henceforth referred to as a Member).
1. Responsibility for acting in the public interest
A Member will carry out his or her activities
- with skill
- with responsible care
- with integrity.
From a professional point of view he or she is responsible to his or her client or employer. At the same time he or she will always act in accordance with the legislation in force, bearing in mind the public interest. He or she will avoid situations which might damage the interests of the public or the profession.
2. Reputation of and respect for the actuarial profession
A Member will act to promote the reputation of and respect for the actuarial profession. He or she will avoid publicity, that might lead to unwarranted or unfair professional advantage, based on facts which cannot be substantiated or which are of a misleading nature. He or she will always avoid criticising before checking his or her facts.
3. Co-operation with others and confidentiality of information
A Member shall perform his or her professional duties with courtesy and will co-operate with others who are working for his or her client or employer. He or she must treat client information as confidential and in no case abuse it.
4. Professional competence
A Member will only perform such professional activities for which he or she has the professional competence and the appropriate experience. Every proffered advice, recommendation or decision must be capable of being justified professionally.
5. Communication of professional findings
A Member, on the basis of his or her professional findings, is capable of showing clearly that he or she is the source of those findings, convincing others of the correctness of his or her reasoning and is capable of providing his or her client or employer with information about the methods or data used and of explaining the extent of his or her work. A member shall, in communicating his professional findings, identify the client for whom these findings are made and in what capacity he or she serves.
6. Elimination of conflicts of interest
A Member will not perform such duties which contain within themselves an actual or potential conflict of interest, which could lead to his or her ability to act fairly being called into doubt. He or she will not perform such duties until such time as the conflict of interest has been eliminated.
7. Transparency of activities and remuneration
A Member will disclose all sources of income, which might influence his services on behalf of that client, and will do so in writing as a declaration and without undue delay.
8. Personal responsibility
A Member is responsible for the standard of the work he or she carries out. He or she must act in accordance with this Code of Conduct as well as any relevant guiding rules (the Constitution and any relevant Standards of Practice of the SSA) and the status of its individual clauses (mandatory, recommended practice, etc.).
9. Co-operation with and protection of the client
A Member will consider to what extent he or she will provide his or her client with information. In doing so, he or she will not withhold facts that could have a detrimental effect on the client and which relate to the matter on which he or she is working with the client.
10. Taking over of professional duties from another Member
If a Member is asked to take over the professional duties of another Member, or to continue with them, he or she must consider whether it is appropriate to consult with the previous Member, in order to convince himself or herself that it is suitable for him or her to take over this responsibility under the given circumstances.
11. Actuary SSA working outside of Slovakia
A Member with the status of Actuary SSA may carry out duties in a foreign country only if he or she is familiar with the nature of the financial market in that country. He or she is advised to inform the Board of the SSA of his or her work abroad, insofar as it represents more than 10% of their total work, and to apply to become a member of the actuarial association in the country concerned.
12. Disciplinary Procedure
Members are subject to the disciplinary arrangements set out in the Disciplinary Procedure of the Society and within the scope of that Procedure have the right of appeal. He or she must, however, accept the judgement passed or the decision of the appeal proceedings.
This Code of Conduct was agreed by a General Meeting of the Slovak Society of Actuaries held on 13 September 2005 and takes affect from that date.
