- Froogled By:
- Elias Makere, FSA, MAAA
- Last Froogled:
ASOP 1 | §1.0 | OVERVIEW
This Introductory ASOP sets forth principles that have been broadly applicable to the work of the ASB since its inception, and carries the same weight and authority as other ASOPs. Any Actuarial Compliance Guidelines promulgated or republished by the ASB that have not been repealed or superseded carry the same weight as ASOPs.
The ASB establishes and improves standards of actuarial practice. These ASOPs identify what the actuary should consider, document, and disclose when performing an actuarial assignment. The ASB’s goal is to set standards for appropriate practice for the U.S. The ASB promulgates ASOPs through a notice and comment process described in the ASB Procedures Manual. The ASB has exclusive authority in the United States to determine whether an ASOP is needed in a particular actuarial practice area, to promulgate ASOPs, and to amend or repeal ASOPs. The ASB is the final authority for determining the content of ASOPs.
ASOPs are binding on members of the U.S.-based actuarial organizations when rendering actuarial services in the U.S. While these ASOPs are binding, they are not the only considerations that affect an actuary’s work. Other considerations may include legal and regulatory requirements, professional requirements promulgated by employers or actuarial organizations, evolving actuarial practice, and the actuary’s own professional judgment informed by the nature of the engagement. The ASOPs provide a basic framework that is intended to accommodate these additional considerations.
This introductory standard is effective for all actuarial services performed on or after June 1, 2013.
Notes
2 These organizations adopted the Code of Professional Conduct effective January 1, 2001.
ASOP 1 | Commentary Section | COMMENT ON SECTION 1.0
| Comment | Response |
|---|---|
Some commentators believed that the sentence
“Each of these organizations requires its members, through its Code of Professional Conduct4 (Code), to observe ASOPs when rendering actuarial services in the United States,”contradicts the Code because it is incomplete (i.e. the sentence doesn’t mention that actuaries must also under the Code satisfy standards of practice in a non-U.S. jurisdiction where they render services). |
The reviewers disagree and made no change. The reviewers believe the statement is accurate as written, and is not inaccurate merely because it does not also describe Code requirements that relate to actuarial standards of practice that exist in other jurisdictions in which the actuary may render actuarial services. |
One commentator suggested revising the sentence
“Each of these organizations requires its members, through its Code5, to observe ASOPs when rendering actuarial services in the United States,”to match the wording in the Code by replacing “observe” with “satisfy applicable.” |
The reviewers made the suggested change but note that the Code uses both terms in the discussion of this topic. |
One commentator indicated that the sentence
“The ASOPs provide a basic framework that will typically accommodate these additional considerations.”should be revised to read “The ASOPs provide a basic framework that should accommodate these additional considerations.” |
The reviewers agree and made the following change:
“The ASOPs provide a basic framework that is intended to accommodate these additional considerations.” |
Notes
5 These organizations adopted the Code of Professional Conduct effective January 1, 2001.
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