The Actuarial Board for Counseling and Discipline (ABCD) was established by the U.S. actuarial organizations to strengthen members’ adherence to the recognized standards of ethical and professional conduct. The ABCD’s history of public discipline indicates nine expulsions, three suspensions, and nine public reprimands since 1985. Three of the nine public reprimands occurred in 2010. The three reprimands included reference to the following problems:
- Issuing actuarial opinions for a client company’s financial statement filings that did not comply with the state’s asset adequacy analysis and other related requirements.
- Failing to perform actuarial work with integrity and competence, and in a manner upholding the reputation of the actuarial profession.
- Producing actuarial work product that did not satisfy applicable standards of practice relating to asset adequacy analysis and actuarial communications.
- Producing actuarial opinions that were not clear and appropriate to the circumstances and intended audience.
- Preparing documents that failed to identify the data, assumptions and other valuation elements upon which the documents were based, and also lacking sufficient information that would allow another pension actuary to opine on the reasonableness of the documents.
- Reaching an erroneous conclusion concerning the anticipated financial impact of a proposed bill and, after realizing the mistake, took no steps to correct the error.
- Making public statements that brought discredit upon the actuarial profession and violated the obligation to fulfill the actuarial profession’s responsibility to the public and uphold the reputation of the profession.
- Failing to act honestly, with integrity and in a manner to fulfill the profession’s responsibility to the public and to uphold the reputation of the actuarial profession.