ASPPA Disciplinary Procedures

> Receipt of Complaints
> Formation of a Discipline Panel from the ASPPA Professional Conduct Committee
> Consideration of Disciplinary Action
> Appeals
> Confidentiality of Process
> Disposition
> Report on Activities

A. Receipt of Complaints

1. The ASPPA Executive Director shall receive formal complaints alleging violations of either the Code of Professional Conduct for Actuaries (hereinafter the “Actuarial Code”), applicable to ASPPA members who are actuaries, or the ASPPA Code of Professional Conduct (hereinafter the “ASPPA Code”), applicable to all ASPPA members. A complaint shall not be considered formally made unless received by the ASPPA Executive Director in writing. Complaints may be submitted confidentially through electronic means at complaint@asppa.org.  A complaint shall not be considered formally made if it is submitted anonymously.

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2. The Chair of the ASPPA Professional Conduct Committee, in consultation with the ASPPA Executive Director shall determine if complaints allege violations that fall within the purview of the Actuarial Code. Complaints within such purview shall be referred to the national organization responsible for actuarial counseling and discipline in the nation where the alleged violation occurred. If the ASPPA Executive Director subsequently or otherwise receives a recommendation for disciplinary action against an ASPPA member who is an actuary, such recommendation shall be referred to the ASPPA Professional Conduct Committee.

3. If a complaint does not allege violations that fall within the purview of the Actuarial Code, the Chair of the ASPPA Professional Conduct Committee, in consultation with the ASPPA Executive Director, shall determine if the complaint alleges violations that fall within the purview of the ASPPA Code. Complaints within such purview shall be referred to the ASPPA Professional Conduct Committee.

B. Formation of a Discipline Panel from the ASPPA Professional Conduct Committee

1. The ASPPA Professional Conduct Committee shall consist of at least 10 credentialed members. The President of ASPPA shall annually appoint a credentialed member as Chair of the ASPPA Professional Conduct Committee. The Chair of the ASPPA Professional Conduct Committee, in consultation with the President of ASPPA, shall appoint the other credentialed members of the ASPPA Professional Conduct Committee. At all times, at least 5 members of the ASPPA Professional Conduct Committee must also be actuaries. At no time shall there be more than one member of the ASPPA Professional Conduct Committee who is also a voting member of the Board of Directors.

2. If the ASPPA Professional Conduct Committee receives a recommendation for disciplinary action from the appropriate actuarial investigatory body against an ASPPA member who is an actuary, the Chair of the ASPPA Professional Conduct Committee shall form a Discipline Panel that consists of five actuary members from the Committee. If five actuary members of the Committee without a conflict of interest cannot be found, the Chair shall appoint (a) special actuary member(s) to the Discipline Panel who is not also a voting member of the Board of Directors to complete the formation of the Panel. Such Discipline Panel shall be responsible for considering recommendations for disciplinary actions against an ASPPA member who is an actuary presented by the appropriate actuarial investigatory body and for taking actions on those recommendations as it deems appropriate.

3. If the ASPPA Professional Conduct Committee receives a complaint against an ASPPA member alleging violations of the ASPPA Code, the Chair shall form a Discipline Panel consisting of five members from the Committee. If five members of the Committee without a conflict of interest cannot be found, the Chair shall appoint (a) special member(s) to the Discipline Panel who is not also a voting member of the Board of Directors to complete formation of the Panel. Such Discipline Panel shall be responsible for investigating complaints against an ASPPA member alleging violations of the ASPPA Code and for determining whether and to what extent disciplinary action is appropriate.

4. If the Chair of the ASPPA Professional Conduct Committee is serving on the Discipline Panel, he or she shall serve as Chair of the Panel. Otherwise the Chair of the ASPPA Professional Conduct Committee shall designate a member of the Discipline Panel to serve as Chair.

5. For all purposes, disciplinary action by a Discipline Panel shall require 3 affirmative votes.

6. The Chair of the Discipline Panel, in consultation with ASPPA’s Executive Director, may engage legal counsel to advise the Panel and ASPPA.

7. The member whose activities are the subject of review by a Discipline Panel is hereinafter referred to as the subject member.

8. All written communications with the subject member shall be made by certified mail. For purpose of these disciplinary procedures, a written notice to the subject member is deemed made on the date received by the subject member, and a written notice from the subject member is deemed made on the date postmarked.

C. Consideration of Disciplinary Action

1. In the case of a recommendation for disciplinary action by the appropriate actuarial investigatory body against an ASPPA member who is an actuary, the Discipline Panel shall review the recommendation and record provided by the appropriate actuarial investigatory body and may seek further information from them or delegate if necessary, and in consultation with ASPPA’s Executive Director, further fact-finding or investigation to an actuary member not on the Committee.

2. In the case of a complaint against an ASPPA member alleging violations of the ASPPA Code, the Discipline Panel shall review the complaint and shall conduct an investigation, which, in the panel’s discretion, may include, in consultation with ASPPA’s Executive Director, fact-finding as deemed necessary. The Discipline Panel, in consultation with ASPPA’s Executive Director, may delegate any fact-finding or investigation to an ASPPA member not on the Committee.

3. The Executive Director of ASPPA shall provide written notice to the subject member in the case of either a recommendation for disciplinary action against an actuary member by the appropriate actuarial investigatory body or in the case of a complaint against a member alleging violations of the ASPPA Code. This notice shall:

a. advise the subject member of the charge(s) made, cite the specific Code of Professional Conduct violations that are alleged, provide a copy of these Rules of Procedure, and, if relevant, that disciplinary action has been recommended by the appropriate actuarial investigatory body along with a copy of any accompanying investigatory report;

b. list the members who will serve on the Discipline Panel and any member to whom fact-finding or investigation has been delegated by the Discipline Panel, and advise the subject member of the right to object to any Panel member or any investigator he or she believes might have an actual or potential conflict of interest, provided that he or she must state the basis for that conflict in writing within 30 days of receipt of this notice (in the event that the subject member objects to a Panel member or any investigator, the Chair (or, in the event that the person alleged to have the conflict is the Chair, the President of ASPPA) shall determine, in consultation with the ASPPA Executive Director, if an actual conflict exists and if so determined, shall appoint a special replacement Panel member or investigator without a conflict of interest to consider the matter); and

c. advise the subject member of the right to submit any relevant evidence in writing which should be considered by the Discipline Panel or any investigator within 30 days of receipt of this notice;

4. Following the completion of any fact-finding or investigation deemed necessary by the Discipline Panel, the Chair of the Discipline Panel shall schedule a hearing at which the subject member shall have the right to appear personally, with or without counsel, at the expense of the subject member, to explain why any disciplinary action is not warranted in the matter or to present any mitigating factors for the Discipline Panel to consider.

5. The ASPPA Executive Director shall provide written notice of this hearing to the subject member, including the time, date, and place where the Discipline Panel will consider the matter not less than 60 days in advance of the hearing. The notice shall include a copy of any written report submitted to the Discipline Panel by an investigator. The 60-day time limit may be waived, or extended, by mutual written consent of both the Discipline Panel and the subject member. The notice shall also advise the subject member of the right to appear at the Discipline Panel hearing, with or without counsel, at the expense of the subject member, and that any factual materials or evidence which he or she wishes to be considered by the Panel must be submitted in writing at least 15 days in advance of the hearing. The notice shall provide that the subject member must notify the ASPPA Executive Director in writing within 30 days of receipt of the notice regarding the scheduled hearing whether the subject member intends on attending the hearing. In the absence of any response to the notice of hearing by the subject member it shall be presumed that the subject member waives his or her right to attend the hearing.

6. Copies of any written notices sent to the subject member shall be provided to the members of the Discipline Panel and the ASPPA President.

7. A hearing of the Discipline Panel shall require a quorum to be present, which shall be 3 members of the Panel. If there is no quorum present because of circumstances reasonably beyond the control of the panel members, or the subject member is not present because of circumstances reasonably beyond his or her control, the hearing shall be rescheduled to a date mutually agreeable between the parties, but in no event more than 60 days following the date of the initially scheduled hearing. If the subject member waives his or her right to a hearing, the ASPPA Executive Director shall so advise the Discipline Panel members and the Panel may, in its discretion, hold the hearing by teleconference. Members of the Committee Panel who are not in attendance at the hearing in person or by teleconference may not vote on the outcome.

8. A Discipline Panel decision to counsel, reprimand, suspend or expel, either publicly or privately, the subject member requires the affirmative vote of at least three members of the Discipline Panel.

9. A transcript shall be made of the hearing of the Discipline Panel, except in the case of a hearing by teleconference, by a court reporter selected by ASPPA. No other recording of the hearing will be permitted. In the case of a hearing by teleconference, a written report of the hearing will be prepared by the Chair of the Discipline Panel. Since the hearing is intended to address the professional conduct of the subject member, dialogue between the subject member and Panel members, and any investigator, if present, should not be impeded by formal legal rules of evidence or procedure. There shall be no evidence presented by the subject member or considered by the Discipline Panel that was not provided in writing at least 15 days prior to the date of the hearing.

10. At a hearing attended by the subject member, the subject member may make an oral presentation of reasonable length and respond to any questions posed by the Discipline Panel members. The subject member may be accompanied by legal counsel and may consult with such counsel. However, the role of such counsel shall be limited to providing advice to the subject member and explaining relevant legal principles. Any investigator who conducted fact-finding or investigation as delegated by the Discipline Panel may be asked to attend the hearing. The Discipline Panel and the subject member may submit questions to any investigator present at the hearing.

11. The deliberations of the Discipline Panel shall be limited to Panel members, the ASPPA Executive Director, and any outside counsel to ASPPA. To the extent a recommendation for disciplinary action has been made by the appropriate actuarial investigatory body, the Discipline Panel has discretion to accept, reject, or modify the recommendation received.

12. The Discipline Panel decision shall be based on the written report of the appropriate actuarial investigatory body, if relevant, the fact-finding or investigation by the Discipline Panel, whether or not delegated to another member, and any evidence submitted in writing by the subject member at least 15 days in advance of the hearing. In reaching its decision the Panel shall consider without limitation the intent of the subject member, whether the violation was willful, the economic loss or other harm caused by the conduct alleged, the seriousness of the violation, the experience of the subject member, any alleged prejudicial material errors in the process of the investigatory body, if relevant, and any other factors the Panel deems appropriate including matters presented at the hearing. The Panel may also take into consideration whether the subject member has been disciplined before and the Chair of the Panel is authorized to inquire with the ASPPA Executive Director or any other body in this regard. In its discretion, the Discipline Panel may conclude that a further hearing, and, if necessary, further fact finding or investigation, is required.

13. The decision of the Discipline Panel shall include a written report of its findings and the rationale for the conclusion. If the matter involves an alleged violation of the Actuarial Code and if the Panel determines that a violation of the Actuarial Code has not occurred, the decision should explain why the Panel’s conclusion differs from that of the appropriate actuarial investigatory body. If the Panel determines that a violation of the Actuarial Code or the ASPPA Code, whichever is in question, has occurred, the decision should cite the specific Code provisions violated and explain how the subject member’s conduct constituted a Code violation. The Panel decision should also contain the rationale for the disciplinary action chosen.

14. The decision of the Discipline Panel shall be provided to the subject member by the ASPPA Executive Director within 30 days after the decision is reached. Copies of the Panel decision shall be provided to the ASPPA President, the ASPPA Executive Director, and the ASPPA Professional Conduct Committee. The decision of the Panel shall be considered final and binding unless written notice of appeal is submitted by the subject member to the ASPPA Executive Director within 45 days of receipt of the decision of the Panel. If the subject member fails to request an appeal, a copy of the Panel decision shall be provided to the authorized representative of the appropriate actuarial investigatory body, if any.

D. Appeals

1. The subject member shall be entitled to appeal the decision of the Discipline Panel by submitting a written request for an appeal to the ASPPA Executive Director within 45 days from receipt of the Discipline Panel decision. The 45-day time limit may be extended by mutual written consent of the parties.

2. Upon the receipt of the written request for appeal, the ASPPA President shall designate five members of the Board of Directors, who do not have a conflict of interest, as eligible to serve on an Appeals Panel to be provided to the subject member by the ASPPA Executive Director. The Appeals Panel may not include any member of the ASPPA Professional Conduct Committee. In the case of a decision by the Disciplinary Committee Panel to impose discipline against a member for violations of the Actuarial Code, all those designated to serve on the Appeals Panel must also be actuaries.

3. The ASPPA Executive Director shall notify the subject member in writing of the names of the five members of the Board of Directors selected. Within 30 days of receipt of this written notice, the subject member shall advise the ASPPA Executive Director of any Appeals Panel member he or she believes might have an actual or potential conflict of interest, provided that he or she must state the basis for that conflict in writing. In the event that the subject member objects to an Appeals Panel member, the ASPPA President (or, in the event that the person alleged to have the conflict is the ASPPA President, the President-Elect of ASPPA) shall determine, in consultation with the ASPPA Executive Director, if an actual conflict exists and if so determined, shall appoint another member to the Appeals Panel. The subject member shall select three of those designated Board members to serve on the Appeals Panel and provide those choices to the ASPPA Executive Director. The ASPPA President shall select one of those three to serve as the Chair of the Appeals Panel and shall so notify the three panel members, the subject member and the ASPPA Executive Director. The Appeals Panel shall act on behalf of the ASPPA Board of Directors.

4. In the event of a request for appeal by the subject member, the full written record, decision, and findings of the Discipline Panel shall be made available to the Appeals Panel by the ASPPA Executive Director. The appeal shall be based entirely upon the written record and shall not include any appearance by the subject member but may include a written submission by the subject member, and any reply submission by the Chair of the Discipline Panel. Any written submission by the subject member must be submitted within 60 days following the date of the written request for appeal.

5. The Appeals Panel shall conduct and complete the appeal within 90 days after receipt of the request for appeal. The Appeals Panel may affirm, modify or reverse the decision of the Discipline Panel. A decision to do other than affirm shall require a determination by the Appeals Panel that: (1) the Discipline Panel’s determinations were clearly erroneous and, absent such errors, a different action is warranted; (2) the Discipline Panel failed to conform to the Rules of Procedure in a manner that was unduly prejudicial and which led to an unwarranted result; or (3) the disciplinary action imposed by the Discipline Panel was inconsistent with the seriousness of the Code violation(s) or the harm that was done. The decision of the Appeals Panel shall require the vote of at least two members of the Appeals Panel.

6. The Appeals Panel decision shall include a written statement of the Panel’s findings and conclusions and shall be provided to the subject member, the Chair of the Discipline Panel, the ASPPA President, the ASPPA Executive Director, and the authorized representative of the appropriate actuarial investigatory body, if any. The Appeals Panel decision shall be final.

E. Confidentiality of Process

1. All proceedings with respect to communications, investigations, and deliberations as provided in these Rules, shall be confidential.

2. Notwithstanding the above, should there be any unauthorized disclosure of information by the subject member with respect to these confidential proceedings, ASPPA shall have the right to respond to such disclosure by providing factual information about the deliberations and proceedings.

3. The ASPPA President shall notify the members via The ASPPA Journal  in all instances in which the Discipline Panel orders public disciplinary action. Notification shall not be given until the time to appeal has expired or, in the event of an appeal, until such appeal has been resolved. At the same time notification is given to the members, the ASPPA President shall also give notice of any disciplinary action to the appropriate actuarial investigatory body, if relevant, and to other persons or organizations, including governmental entities, which, in the opinion of the Discipline Panel, in consultation with the ASPPA Executive Director, should also receive notice of the action as being in the best interest of the public.

4. In the event of subsequent reinstatement of the subject member, at the request of such member, the ASPPA President shall give notice of such action to all members via The ASPPA Journal and to entities previously advised of the public disciplinary action.

5. For a listing of any ASPPA members that are currently subject to disciplinary action please send your request to discipline@asppa.org.

F. Disposition

Upon the completion of an appeal, or in the case of no appeal upon the expiration of the period for appeal, the President of ASPPA, in consultation with the ASPPA Executive Director, shall initiate the action necessary to comply with the final order. In the event of public disciplinary action, the President shall be responsible for notifying the membership, and any other organizations or entities, as provided above. Such disclosure shall not take place until at least two business days after the subject member has received notice of the final decision or otherwise reasonable efforts have been made to effect that notification. In the event that the Discipline Panel hearing or the appeal results in no public disciplinary action, the ASPPA President shall authorize the specified private disciplinary action, if any. In all cases, the matter shall otherwise continue to be treated in a confidential manner, with all records of the hearing and any appeal sealed and retained by the ASPPA Office under the control of the Executive Director. The members of the Discipline Panel or Appeals Panel, the ASPPA President, or the ASPPA Executive Director may, however, be required to divulge such records by court order or other legal process in some circumstances, or as necessary to fulfill their appointed functions.

G. Report on Activities

The Chair of the ASPPA Professional Conduct Committee shall issue an annual report to the Board of Directors and to the membership that shall include a description of its activities, including commentary on the types of cases pending, resolved, and dismissed. This annual report shall be subject to the confidentiality requirements and provisions set forth above.