1. Actuarial Enterprises, Ltd.
MAY 14, 2019 HARTFORD-SPRINGFIELD ACTUARIAL CLUB MEETING HARTFORD, CT PROFESSIONALISM MAINLY BASICS
Jay Jaffe, President
Actuarial Enterprises, Ltd.
Chicago, IL 60610
Welcome.
Good morning.
Please take a seat at one of the tables with a Table #.
The next two slides are housekeeping --- don’t bother to take notes!
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2. SOCIETY OF ACTUARIES Antitrust Compliance Guidelines
Active participation in the Society of Actuaries is an important aspect of membership. While the positive contributions of professional societies and associations are well-recognized and encouraged, association activities are vulnerable to close antitrust scrutiny. By their very nature, associations bring together industry competitors and other market participants.
The United States antitrust laws aim to protect consumers by preserving the free economy and prohibiting anti-competitive business practices; they promote competition. There are both state and federal antitrust laws, although state antitrust laws closely follow federal law. The Sherman Act, is the primary U.S. antitrust law pertaining to association activities. The Sherman Act prohibits every contract, combination or conspiracy that places an unreasonable restraint on trade. There are, however, some activities that are illegal under all circumstances, such as price fixing, market allocation and collusive bidding.
There is no safe harbor under the antitrust law for professional association activities. Therefore, association meeting participants should refrain from discussing any activity that could potentially be construed as having an anti-competitive effect. Discussions relating to product or service pricing, market allocations, membership restrictions, product standardization or other conditions on trade could arguably be perceived as a restraint on trade and may expose the SOA and its members to antitrust enforcement procedures.
While participating in all SOA in person meetings, webinars, teleconferences or side discussions, you should avoid discussing competitively sensitive information with competitors and follow these guidelines:
Do not discuss prices for services or products or anything else that might affect prices
Do not discuss what you or other entities plan to do in a particular geographic or product markets or with particular customers.
Do not speak on behalf of the SOA or any of its committees unless specifically authorized to do so.
Do leave a meeting where any anticompetitive pricing or market allocation discussion occurs.
Do alert SOA staff and/or legal counsel to any concerning discussions
Do consult with legal counsel before raising any matter or making a statement that may involve competitively sensitive information.
Adherence to these guidelines involves not only avoidance of antitrust violations, but avoidance of behavior which might be so construed. These guidelines only provide an overview of prohibited activities. SOA legal counsel reviews meeting agenda and materials as deemed appropriate and any discussion that departs from the formal agenda should be scrutinized carefully. Antitrust compliance is everyone’s responsibility; however, please seek legal counsel if you have any questions or concerns.
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3. Presentation Disclaimer
Presentations are intended for educational purposes only and do not replace independent professional judgment.  Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of the Society of Actuaries, its cosponsors or its committees.  The Society of Actuaries does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.  Attendees should note that the sessions are audio-recorded and may be published in various media, including print, audio and video formats without further notice.
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4. HOW I PREPARED FOR TODAY
Personal experiences
Open source research (Googling)
Recollections from books I have read
Feedback from other presentations
Etc.
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6. SESSION GENERAL GOALS
PARTICIPATE in important professional discussions
Expand your concept of professionalism
Gain insight into how non-actuary professionals deal with certain professionalism issues
Potential feedback to SOA about professionalism
Help meet professionalism CE requirement
Make professionalism a fun experience rather than a dreadful requirement
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7. THIS SESSION’S AGENDA The meaning of: Ethics Email professionalism
Inflection points
Q&A
This session has been designed to be participatory. If I’m the only one to talk, it will not be as valuable to you as if we hear your thoughts and opinions.
I will introduce each topic for about an average of 5 minutes. You will then have about 4-5 minutes for discussion at your table. This will be followed by reports from a couple of tables describing their key observations. Time permitting, other tables can present any comments for a topic that weren’t covered. Be sure to use the mic so everyone can hear.
In the interests of time I will try NOT to cover too much detail shown on a slide because you can read the key points faster than I can speak and we have limited time to cover the agenda.
TOPIC #1: Professionalism.
Actuaries consider themselves professionals
Expand your knowledge of the area
c. Increase your sensitivity to professionalism
TOPIC #2: Ethics
TOPIC #3: ing / communications
professionalism really is a subset of communications --- something we all do as part of our jobs
It is particularly important because it has a lot to do with how well we do our jobs.
TOPIC #4: Professional standards --- Going to look at professional standards from the point of view of what another and related profession has done may be helpful when thinking about actuarial professional standards
TOPIC #%: Conflicts of interest:
A fundamental aspect of professionalism
A problem all professions must address
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8. WHY START WITH THIS SESSION WITH A DISCUSSION OF THE 3 P’S
WHY START WITH THIS SESSION WITH A DISCUSSION OF THE 3 P’S? PROFESSIONAL, PROFESSION AND PROFESSIONALISM? Answer: to establish a common knowledge base
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9. PROFESSIONAL
An adjective: a PROFESSIONAL athlete (as opposed to an amateur)
A noun:
A person engaged or qualified in a profession (such a lawyer, doctor, etc.)
A person competent or skilled in a particular activity (such as an actor)
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10. Someone who follows the principles of his or her profession
PROFESSIONAL
Someone who follows the principles of
his or her profession
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11. ATTRIBUTES OF A PROFESSIONAL
Objectivity
Respect
Honesty
Competence
Honor commitments
Project positive image
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12. THE POINT IS THAT BEING A PROFESSIONAL (E. G
THE POINT IS THAT BEING A PROFESSIONAL (E.G., AN ACTUARY) IS MORE THAN JUST KNOWING THE RULES AND TOOLS (E.G., ASOP’S OR HOW TO DO A CALCULATION)
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13. THE MEANING OF A PROFESSION
Chris Daykin
“Professionalism and Trust”
Chris was the UK government actuary for nearly 20 years.
Widely respected.
He has been a deep thinker about actuarial practice topics.
I’d describe Chris as a “good guy” and definitely someone with whom you’d enjoy having drinks and dinner.
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14. ELEMENTS OF A PROFESSION
A skilled intellectual technique
A voluntary association bound by a code of conduct
A formalized mode of enforcing the code of conduct upon the membership
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15. 10 DISTINGUISHING FEATURES OF A PROFESSION
Advanced educational requirements
Accreditation of the educational standard by a professional body
Requiring work experience in a professional context
Professional code of conduct
Written standards of practice
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16. 10 DISTINGUISHING FEATURES OF A PROFESSION
6. Collective responsibility for maintenance of competence and standards 7. Requirement to remain in good standing 8. Continuing professional development requirements 9. A comprehensive discipline process 10. The possibility of a common voice to participate in public debate
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17. THE BENEFITS TO THE PUBLIC OF PROFESSIONS
Quality assurance:
Education
CE and professional development
Professional norms and standards of practice
Degree of consistency in professional advice
Availability of the professional service
Fiduciary responsibility between professionals and their clients
3rd parties being able to lay a complaint and seek redress
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18. THE 2 KEY QUESTIONS Are SOA, CAS, and AAA members:
1. Professionals? and/or
2. Members of a profession?
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19. YES ARE SOA, CAS, AAA MEMBERS Professionals? Members of a profession?
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20. WHAT IS PROFESSIONALISM?
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21. WHAT IS PROFESSIONALISM?
The competence or skill expected of a professional.
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22. YOUR 2 AUDIENCES
Outsiders
Peers
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23. YOUR 2 AUDIENCES
Outsiders
Peers
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24. 2 QUESTIONS REGARDING PROFESSIONALISM
What do outsiders (i.e., non-peers) expect from a professional?
What do peers expect from a professional?
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25. WHAT DO OUTSIDERS EXPECT FROM A PROFESSIONAL?
Appearance
Demeanor
Reliability
Competence
Ethics
Poise
Communication etiquette
Accountability
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26. WHAT DO PEERS EXPECT FROM A PROFESSIONAL?
Professional integrity
Qualifications
Standards of Practice
Communication and Disclosure
Conflict of Interest rules
Control of Work Product
Confidentiality
Courtesy and Cooperation
Follow Advertising rules
Deal with Violations of Code of Professional Conduct
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27. A PROFESSIONAL’S FIDUCIARY RELATIONSHIP
Mutual trust between client and professional
No material info withheld by client
Client trusts professional because of education and membership in a professional body
Tailoring advice to client’s needs and in accordance with professional standards
Remuneration is fee based and all other relevant interests are disclosed
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28. PROFESSIONALISM AND CE: UNDERLYING REASONS
A necessity regardless of whether it is required
Prepares a professional for change and staying current
Includes reviewing materials --- has there been a change since the last time you read a document?
Stimulates innovation
A mechanism to establish personal contacts outside of your environment (international, other specialists, volunteer, etc.) and generate professional cross-fertilization
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29. PROFESSIONALISM AND CE: 3 PERSPECTIVES
Stick to narrow professional/actuarial topics
Take a broader perspective beyond the technical and actuarial specific topics:
Issues raised by other professions
Best practice concepts
General business concerns
The bare minimum CE standard is enough
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30. DISCUSSION TOPIC #1: CE
Should the actuarial profession require CE and, specifically, professionalism CE?
If CE were NO longer required, how would you maintain your actuarial and professionalism skills?
If CE continues to be required, what improvements to the present SOA system would you recommend?
It may turn out that you get more from this session during the table discussions than from my remarks. If so, my feelings won’t be hurt. In fact, as noted earlier, this is the goal of the session.
You won’t have time for all of the discussion topics. I’ve usually highlighted one of the topics but if your table would prefer to concentrate on any of the non-highlighted topics, definitely do so.
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32. ETHICS (Moral Philosophy)
Ethics --- the branch of philosophy that involves systematizing, defending and recommending concepts of right and wrong conduct
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33. BUSINESS ETHICS
A form of professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment
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34. There is an Actuarial Code of Conduct
REMINDER
There is an
Actuarial Code of Conduct
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35. ACTUARIAL CODE OF CONDUCT ETHICS RELATED TOPICS
Fulfilling responsibility to “the public”* (intro)
Laws take precedence over Code of Conduct (intro)
Acting with integrity and competence (P#1)
Uphold reputation of the actuarial profession* (P#1)
Disclosure of compensation (P#6)
No false or misleading advertising (P#11)
* Responsibility and reputation not defined
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36. MAIN ETHICAL CONCERNS FACING ACTUARIAL PROFESSION*
Being pressured to select inappropriate assumptions used in pricing and reserving
Allowing false or misleading representation of products or service in marketing, advertising or sales efforts
Failure to take appropriate action when another actuary misrepresents information or you otherwise see that something has not been done correctly (aka “the snitch rule”)
* “New Ethical Concerns Facing the Actuarial Profession,” AAA Council on Professionalism, 4/15
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37. QUALIFYING PROFESSIONALISM ACTIVITIES: ETHICS*
Business ethics:
fiduciary responsibilities,
corporate governance,
discrimination,
intellectual property rights,
ethical standards around the world,
etc.
*SOA Panel Discussion, June, 2010 (Session #22)
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38. AICPA ETHICS COURSE TOPICS
Recognizing ethical issues;
Exercising professional judgment;
Addressing differences with your employer;
Objectivity and independence standards;
Identifying conflicts of interests;
Gifts/entertainment from company vendors or customers;
Competence;
Due care; and
The ethical decision-making model.
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39. ETHICS: AICPA & SOA Area AICPA SOA Judgment Yes Implied
Objectivity / Independence
Conflicts of Interest
Competence
Ethical Decision Making Model
Maybe
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40. ETHICS IS AN OPEN ENDED TOPIC
Often tough to get a “black or white” answer
Other professions wrestle with ethics --- what can we learn from their efforts?
Probably an area that is faced by actuaries with more experience --- but less experienced actuaries must be conscious of the area!
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41. ETHICAL TOPICS YOU MAY ENCOUNTER
WHAT SHOULD I DO IF ….?
I work for a company and am confronted by:
A professional ethical problem?
A non-professional ethical problem?
I am a consulting actuary and am concerned about an ethical matter with a client?
I observe another actuary doing something ethically inappropriate?
I do something stupid?
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42. SUGGESTIONS FOR DEALING WITH ETHICAL PROBLEMS
Recognize that ethical problems are “part of the job”
Understand the consequences of unethical behavior
Consider the ethical standards of your employer, partners, etc. + those of your profession
Consult ABCD or other actuaries
Is there ever a “safe harbor”?
Ethics is part of your CE:
Important topic
Qualifies as part of your CE Professionalism hours
Avoid the problem in the first place
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43. DISCUSSION TOPIC #2: ETHICS
Do we need to teach and discuss ethics?
Is there a difference between “professional ethics” and “ethics”? If so, what is it?
Does the threat of “loss of license” cause professionals to act more ethically?
At what point should an actuary take action?
Reporting another actuary?
Resigning from a job or an assignment?
Is a “no harm/no foul safe harbor” attitude OK?
ALSO SEE NEXT PAGE OF DISCUSSION TOPICS
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45. EMAIL (COMMUNICATION) PROFESSIONALISM
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46. EMAIL PROFESSIONALISM: 16 REMINDERS*
Use a clear, direct subject line
Use a professional address
Think twice before hitting “reply all”
Include a signature block
Use professional salutations
Use exclamation points sparingly
Be cautious with humor
*Inc.com, 2/2/16
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47. EMAIL PROFESSIONALISM: 16 REMINDERS
8. Know that people from different cultures speak and write differently 9. Reply on a timely basis to all s 10. Proofread/spellcheck every message 11. Add the recipient(s) address last 12. Double-check the recipients 13. Use classic fonts 14. Monitor your language
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48. EMAIL PROFESSIONALISM: 16 REMINDERS
15. NO S, TWEETS, OR OTHER ELECTRONIC COMMUNICATIONS ARE CONFIDENTIAL!
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49. EMAIL PROFESSIONALSIM: 16 REMINDERS
16. S ARE PERMANENT!
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50. OTHER WARNINGS
Become familiar with and follow your employer’s protocols
Keep your business and private communications on separate devices
Immediately notify unintended recipients
Respond to s
Review ASOP #41 (Communications) which covers all communications such as s but also verbal interchanges
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51. MORE ABOUT S
s are probably always discoverable communications.
If an is to be confidential, see your lawyer before sending.
Carefully use “bcc” and “reply to all.”
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52. WHAT’S DISCOVERABLE?
The short answer is everything --- even phone messages!
Time may dampen memories but NOT obscure electronic communications
Electronic communications provide an accurate picture of “what you were thinking”
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53. and your s!
(George Orwell 1984)
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54. BIG BROTHER AND YOUR OPPONENT’S ATTORNEY ARE WATCHING YOUR EMAILS
Assume all are discoverable
Be careful what you put in an ; the things that you think are funny today may not seem funny to a jury five years from now.
If you would be embarrassed to see your published in the New York Times, don’t press “send.”
Employees have no privacy rights in s sent on corporate computers.
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55. QUESTION: TO TWEET OR NOT TO TWEET?
Tweeting is NOT professional
Tweeting is ok to say “I’m running late”
Tweeting is a social r/t a business communication tool
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56. SOCIAL MEDIA
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57. DISCUSSION TOPIC #3: EMAIL
Any tips to pass along to the group?
Alternatives to , texts, etc.?
preservation/discovery?
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58. ACTUARIES’ EMAIL THOUGHTS*
Provide context and caveats even when they are not required. For example: “This is an of my full opinion. Please contact me for more information.”
Consider the appropriate level of formality or informality that is appropriate for a particular .
Don’t become someone who opens SPAM!
Avoid multiple topics in a single and chains.
Color coding (such as yellow for a question) may help to increase readability and clarity of an .
Use personal conversations, phone calls, etc. for sensitive matters r/t .
Avoid negativity in s.
*Discussion at SOA 2017 Annual Meeting
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60. INFLECTION POINTS
The point at which a convex (upward) curve turns concave (downward) or vice versa.
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61. PROFESSIONAL INFLECTION POINTS
The point at which you have to make personal decisions relating to your career.
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62. INFLECTION POINT PERSPECTIVES
Younger actuaries:
Your future may depend on how you handle yourself at an inflection point
Your reputation is at stake
Older actuaries:
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63. THE ULTIMATE INFLECTION POINT: WHEN TO WALK AWAY
Always be prepared to walk away
Discuss your predicament with you family --- they will usually steer you in the right direction
Maintain your ethics and standards --- if you don’t, the next time it is easier to justify make a bad decision --- doubling down is NOT an option
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64. DISCUSSION TOPIC #4: PROFESSIONAL INFLECTION POINTS
Ideas for checking your work for flaws
Who do you turn to when you have a critical professional question?
How to recognize you are at a professional inflection point?
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65. Please send me any comments: jay@actentltd.com 312-397-0099
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66. THE PM SESSION’S AGENDA
Professional standards (Accountants v. Actuaries)
Conflicts of interest
Mentoring
Checklists and professionalism
This session has been designed to be participatory. If I’m the only one to talk, it will not be as valuable to you as if we hear your thoughts and opinions.
I will introduce each topic for about an average of 5 minutes. You will then have about 4-5 minutes for discussion at your table. This will be followed by reports from a couple of tables describing their key observations. Time permitting, other tables can present any comments for a topic that weren’t covered. Be sure to use the mic so everyone can hear.
In the interests of time I will try NOT to cover too much detail shown on a slide because you can read the key points faster than I can speak and we have limited time to cover the agenda.
TOPIC #1: Professionalism.
Actuaries consider themselves professionals
Expand your knowledge of the area
c. Increase your sensitivity to professionalism
TOPIC #2: Ethics
TOPIC #3: ing / communications
professionalism really is a subset of communications --- something we all do as part of our jobs
It is particularly important because it has a lot to do with how well we do our jobs.
TOPIC #4: Professional standards --- Going to look at professional standards from the point of view of what another and related profession has done may be helpful when thinking about actuarial professional standards
TOPIC #%: Conflicts of interest:
A fundamental aspect of professionalism
A problem all professions must address
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67. AND / OR
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