CIA Annual Meeting

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CIA Annual Meeting

• LOOKING BACKfocused on the future

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• Current Proposal
• Feedback
• The way forward
• D. Allen Loney

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Current Proposal

• Report from AA Committee
• Circulated to profession on February 23 with
  letter from President
• Feedback sought by March 25 but extra time was
  allowed

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• President Requested Feedback
• Feedback sought on all aspects of proposal
• Specifically sought on
• alternative ways of strengthening standards
• should practice certificates be required for
  other types of work
• are the appropriate practical experience
  proposals too easy, too onerous, about right.

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• Feedback Received
• 36 Responses from a wide range of practitioners.
  Some were joint responses.
• All responses were acknowledged
• Some in principle pro, some in principle opposed
• Many suggested changes and improvements

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• Feedback - Alternative ways of Strengthening
  Standards
• A moderate amount of feedback on this
• Mostly suggested strengthening Continuing
  Professional Development requirements
• But there was little specific feedback on how
  that might be achieved.

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• Feedback - Practice Certificates required for
  other types of Work
• Feedback mixed - a number thought should apply to
  all types of work, or all work requiring FCIA
  signature
• Others thought that it should not be expanded
  beyond AA work.
• To be clear current proposal to Board from the AA
  Committee deals with AA work only and in no way
  suggests or anticipates the extension of Practice
  Certificates to other types of work

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• Feedback - Appropriate Practical Experience
• Reasonable amount of feedback.
• In general biased toward proposal being not
  strong enough, particularly re the timing of
  appropriate experience (3 years in last 10).
  Some feedback suggested 10 years was too long.
  We are considering changes to the recommendation
  in this regard.
• Clarification needed that Appendix A requirements
  apply to both Life PC
• Some suggestions that pricing experience is not
  appropriate experience.
• Some confusion re phrase most of the following
  types of work in Appendix.

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• Other Feedback - Life/PC
• Why is Workers Compensation not covered? Because
  it does not require AA certification.
• Some P C reserves use Life techniques (CALM)
  e.g. P C companies that primarily write long
  term guaranteed products. Clarification needed
  as to whether Life or PC certificate required.
• It needs to be made clearer that appropriate P
  C experience is required for a PC certificate
  and appropriate Life experience for a Life
  certificate.

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• Other Feedback
• There was some feedback that Practice
  Certificates would not ensure that every AA was
  fully equipped to handle the job, or would
  execute the job in a fully competent way.
• No measure can guarantee that, but this is a step
  in the right direction.
• It sets threshold requirements. It should ensure
  that no one who is clearly unequipped to carry
  out AA duties takes on an AA job.
• Rule 2 will still apply, but self assessment
  alone does not meet modern governance
  expectations.
• is up to date with respect to CPD
• has not been the subject of an adverse finding of
  a CIA disciplinary tribunal

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• Other Feedback - Disciplinary Record
• Several respondents felt the sections relating to
  an Actuarys past disciplinary record did not sit
  well with the duties of the Committee on
  Professional Conduct.
• There will likely be some changes to the
  recommendation in this regard.

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• Other Feedback - Different Classes of Actuaries
• Some respondents suggested that Practice
  Certificates for AAs created different classes of
  actuaries.
• While we are all members of a single Canadian
  profession we perform many very different types
  of work.
• It hardly seems surprising that different
  requirements may be needed before embarking on
  certain types of work.
• This is common in other professions e.g.
  auditing, healthcare, etc.

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• Feedback - Peer Review/Audit
• Some feedback suggested that there should be
  higher requirements for actuaries performing peer
  review.
• On reflection we did not feel this was practical
• We are planning to extend the scope to cover
  reviewing actuaries who do work for audit firms
  under the expanded audit of actuarial liabilities
  which is anticipated soon.

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• The Way Forward
• The recommendation is being redrafted to
  reflect
• feedback received so far.
• We are open to feedback at this meeting today
• and over the course of the next month as
  the
• redraft is prepared.
• AA Committee will be asked to send a
  redrafted
• recommendation to the Board for its
  September
• meeting

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• The Way Forward - Contd.
• Subject to Board approval and members
• confirmation at the General Meeting in
• November, it is planned that Practice
• Certificates would be in effect for 2005
  year-
• end.
• I expect there will be a session on Practice
  
• Certificates at the September AA Seminar
  in
• Montreal.

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