The Profession
The word ‘actuary’ occupationally has two meanings.
The first meaning is that of government regulation. Namely, the profession ‘actuary’ is included in the catalogue of professions in the Republic of Latvia. It means that an institution, company or organization engaged in certain activities, as described in the respective section of the catalogue of professions, may establish a position called ‘actuary’ and employ an individual who in their opinion is capable of performing the role.
The other meaning concerns professional capability. This meaning is rather more important than the previous one as it does not just describe a position occupied by an employee but a specific professional capability. In this case, the employee may have a position with a different title, yet be a professional actuary. The right to use a professional title like this one can obtain by becoming a Fellow of Actuarial Association (FAA). The professional FAA standard is an international standard formulated by the International Actuarial Association, an organization which unites national Associations of Actuaries.
The role of the actuary in insurance companies is starting to change dramatically, driven by the coming needs of Solvency II.
For more information: http://www.insuranceriskandcapital.com/analysis/ca...
Requirement
Educational requirements
The first degree of the professional standard includes requirements for the actuarial education.
Globally, the key requirements regarding the actuarial education are formulated (and updated) by the International Actuarial Association (IAA). In order for a national Association of Actuaries to become a member of IAA it should comply with the educational requirements of IAA. Groupe Consultatif, the actuarial association forum of the EU member states, has also defined its educational requirements which are conceptually the same as those of IAA.
Since the Latvian Actuarial Association is small in numbers it is impossible to establish and maintain own system of educational requirements, therefore, the Latvian Actuarial Association uses the educational requirements of the British Institute of Actuaries.
There are two primary educational requirements for an actuary – training courses and the examination of professional qualification (professionalism). Training courses and examinations may be taken both at universities and other venues such as European Actuarial Academy. After training courses the candidate may be accepted an Associated Member of the Actuarial Association.
The status of Fellow Actuarial Association (FAA) may be obtained after passing the examination of professionalism organized by the Latvian Actuarial Association.
Education requirements of the British Association of Actuaries:
Must be sorted by:
- all CT and CA series exams;
- two of the ST series of examinations and one of the SA series of examinations (optional).
Professional Development (CPD)
What is CPD?
Continuing Professional Development (CPD) may be defined as the development of knowledge and of technical, professional, personal, business and management skills and competencies throughout an actuary’s working life.
CPD refers to the development of the whole person with attention to technical actuarial skills, related professional skills, business and management skills, professionalism skills and personal skills such as independence of thought and time management.
All actuaries are encouraged to undertake CPD for the following reasons:
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An actuary needs to maintain his/her familiarity with the complex environment in which he/she works;
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An actuary needs to keep up with new actuarial standards of practice and modifications to existing standards;
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An actuary needs to be aware of developments in national and international legislation and accounting standards;
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Actuaries may take on a number of different roles over their careers, including managerial roles, and personal development will be necessary to equip them for these new roles;
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Actuaries who move between countries or work in an international environment need to understand the different regulatory and legislative framework in each country and the applicable accounting standards and actuarial standards and practices;
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Continuing Professional Development (approved in General meeting on March 27, 2024) (available in Latvian);
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Continuing Professional Development (CPD) report example (approved in General meeting on March 24, 2010 (available in Latvian).
Code of Conduct
The Code of Conduct determines the professional and ethical standards and basic principles that should be observed by actuaries. The actuary should comply with the regulations of the Code of Ethics and should follow all the recessions to these regulations when rendering the professional services. The regulations of the Code of Ethics are equally applied to all professional actuaries in the Republic of Latvia.
The Code of Conduct is based on an assumption that the aim of the actuarial profession is to work in accordance with the best professional standards, in order to attain higher level of rendering of the services and generally satisfy interests of the society.
Contents of The Code of Conduct
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Professional Integrity;
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Qualification Standards;
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Standards of Practice;
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Payment;
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Conflict of Interests;
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Use of Work Product;
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Confidentiality;
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Rendering of Services and Co-operation;
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Advertisement and Announcements;
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Titles and Designations;
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Disciplinary Procedures;
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Elaboration of Reports;
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Foreign Practice;
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Objectivity;
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Code of Conduct..