The Accountancy and Actuarial Discipline Board’s professional disciplinary scheme for actuaries became effective as of 13 September 2007. The adoption of an independent disciplinary scheme follows the Morris Review of the Actuarial Profession, consultation, and the approval of participation by the membership of the Institute of Actuaries and the Faculty of Actuaries in Scotland.

The Actuarial Scheme will apply to cases which raise important issues affecting the public interest in the UK. The AADB has issued guidelines which it will use to decide whether a case meets the public interest test. The Scheme and Regulations are today published on the AADB website together with the guidelines for identifying public interest cases at http://www.frc.org.uk/aadb/publications.

The AADB is in the process of appointing two actuaries to its Board, which currently has 5 lay members and 3 accountant members. The AADB will also appoint a further lay member in order to maintain the lay majority which is a guiding principle for the independence of the AADB.

Mike Fogden, Chairman of the AADB, said:

“I am pleased to announce that the independent disciplinary scheme for actuaries is now effective. I believe it will play an important role in maintaining the public’s confidence in the actuarial profession in the UK."

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance. Its functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy & Actuarial Discipline Board) and by the Council. The Committee on Corporate Governance, whose members are drawn from the Council, assists it in its work on corporate governance. 
2. The Accountancy and Actuarial Discipline Board ("AADB") is the independent, investigative and disciplinary body for accountants and actuaries in the UK. The AADB is responsible for operating and administering independent disciplinary schemes. The Accountancy Scheme covers Members of the following accountants' professional bodies:- the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, the Institute of Chartered Accountants in Ireland, the Institute of Chartered Accountants of Scotland and the Institute of Chartered Accountants in England and Wales. The Actuarial Scheme covers Members of the Institute of Actuaries and the Faculty of Actuaries in Scotland. 
3. The focus of the AADB is on cases which raise important issues affecting the public interest; other disciplinary cases will continue to be dealt with by the relevant professional body. The purpose of an investigation is to determine whether there is evidence of misconduct on the part of Members or Member Firms of the professional bodies. An investigation does not always mean that an allegation has been made or that there is evidence of misconduct on the part of the Member or Member Firm involved. 
4. Disciplinary Complaints filed following an AADB investigation are heard by an independent Tribunal which will normally sit in public. If the Tribunal upholds a Complaint, there is a wide range of sanctions which it can impose including an unlimited fine, exclusion from membership of a professional body and withdrawal of practising certificates or licenses. 
5. All Press enquires should be directed to: Anna Colban, Secretary to the Board, on telephone: 020 7492 2451 or email: a.colban@frc.org.uk.