Chapter 4
MISCONDUCT
26. Disciplinary Committee.
26. Disciplinary Committee.—(1) The Council shall constitute a Disciplinary Committee consisting of the President or the Vice-President of the Council as the Presiding Officer and two members of the Council elected by the Council and two members to be nominated by the Central Government from amongst the persons of eminence having experience in the field of law, education, economics, business, finance, accountancy or public administration:
Provided that the Council may constitute more regional Disciplinary Committee as and when it deems fit.
(2) The Disciplinary Committee in making the inquiry under the provisions of this Act shall follow such procedure and submit the report to the Council within such time as may be prescribed.
27. Appointment of Prosecution Director.
27. Appointment of Prosecution Director.—(1) The Council may, by notification, appoint a Prosecution Director and such other employees to assist the Disciplinary Committee in making inquiries in respect of any information or complaint received by the Council under the provisions of this Act.
(2) In order to make inquiries under the provisions of this Act, the Prosecution Director shall follow such procedure as may be prescribed.
28. Authority, Council, Disciplinary Committee and Prosecution Director to have powers of civil court.
28. Authority, Council, Disciplinary Committee and Prosecution Director to have powers of civil court.—For the purposes of an inquiry under the provisions of this Act, the Authority, the Disciplinary Committee and the Prosecution Director shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) the discovery and production of any document; and
(c) receiving evidence on affidavit.
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Other Contents of Actuaries Act, 2006 |
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Sections 1 to 10 |
29. Action by Council on Disciplinary Committee’s report.
29. Action by Council on Disciplinary Committee’s report.—(1) On receipt of a report from the Disciplinary Committee, if the Council is satisfied that the member of the Institute is guilty of any professional or other misconduct, it shall record its findings accordingly and shall proceed in accordance with the provisions of Section 30.
(2) In case the Council is not satisfied with the report of the Disciplinary Committee and is of the opinion that it requires further inquiry, it may refer the report again to the Disciplinary Committee for such further inquiry as may be directed through an order of the Council.
(3) If the Council disagrees with the findings of the Disciplinary Committee, it may direct the Prosecution Director or itself make an appeal to the Authority.
30. Member to be afforded opportunity of being heard.
30. Member to be afforded opportunity of being heard.—Where the Council is of the opinion that a member is guilty of a professional or other misconduct mentioned in the Schedule, it shall afford to the member a reasonable opportunity of being heard before making any order against him and may thereafter take any one or more of the following actions, namely:—
(a) reprimand the member; or
(b) remove the name of the member from the register permanently or for such period, as it thinks fit.
(c) impose such fine as it may think fit, which may extend to five lakh rupees.
Explanation.—For the purposes of this section, “member of the Institute” includes a person who was a member of the Institute on the date of the alleged misconduct although he has ceased to be a member of the Institute at the time of the inquiry.
31. Professional or other misconduct defined.
31. Professional or other misconduct defined.—For the purposes of this Act, the expression “professional or other misconduct” shall be deemed to include any act or omission provided in the Schedule, but nothing in this section shall be construed to limit or abridge in any way the power conferred or duty cast on the Disciplinary Committee or the Prosecution Director to inquire into the conduct of any member of the Institute under any other circumstances.
Chapter 5
APPEALS
32. Constitution of Appellate Authority.
32. Constitution of Appellate Authority.—The Appellate Authority constituted under sub-section (1) of Section 22-A of the Chartered Accountants Act, 1949 (38 of 1949), shall be deemed to be the Appellate Authority for the purposes of this Act subject to the modification that for clause (b) of said sub-section (1), the following clause had been substituted, namely:—
“(b) the Central Government shall, by notification, appoint two part-time Members from amongst the persons who have been members of the Council of the Institute of Actuaries for at least one full term and who are not sitting members of the Council;”.
33. Term of office of Members of Authority.
33. Term of office of Members of Authority.—A person appointed as a Member shall hold office for a term of three years from the date on which he enters upon his office or until he attains the age of sixty-seven years, whichever is earlier.
34. Allowances, conditions of service of Members and procedure, etc., of Authority.
34. Allowances, conditions of service of Members and procedure, etc., of Authority.—The provisions of Section 22-C, Section 22-D and Section 22-F of the Chartered Accountants Act, 1949 (38 of 1949) shall apply to the Authority in relation to allowances and terms and conditions of services of its Chairperson and members, and in discharge of its functions under this Act as they apply to it in the discharge of its functions under the Chartered Accountants Act, 1949.
35. Officers and other staff of Authority.
35. Officers and other staff of Authority.—(1) The Council shall make available to the Authority such officers and other staff members as may be necessary for the efficient performance of the functions of the Authority.
(2) The salaries and allowances and conditions of service of the officers and other staff members of the Authority shall be such as may be specified.
36. Appeal to Authority.
36. Appeal to Authority.—(1) Any member of the Institute aggrieved by any order of the Council imposing on him any of the penalties referred to in Section 30, may, within ninety days of the date on which the order is communicated to him, prefer an appeal to the Authority:
Provided that the Authority may entertain any such appeal after the expiry of the said period of ninety days, if it is satisfied that there was sufficient cause for not filing the appeal in time.
(2) The Authority may, after calling for the records of any case, revise any order made by the Council under Section 30 and may—
(a) confirm, modify or set aside the order;
(b) impose any penalty or set aside, reduce or enhance the penalty imposed by the order;
(c) remit the case to the Disciplinary Committee for such further inquiry as the Authority considers proper in the circumstances of the case; or
(d) pass such other order as the Authority thinks fit:
Provided that the Authority shall give an opportunity of being heard to the parties concerned before passing any order.
Chapter 6
PENALTIES
37. Penalty for falsely claiming to be a member, etc.
37. Penalty for falsely claiming to be a member, etc.—Subject to the provisions of Section 10, any person who,—
(a) not being a member of the Institute,—
(i) represents that he is a member of the Institute in any of the manners mentioned in Section 7; or
(ii) uses the designation “Actuary”; or
(iii) uses the letters “AIAI” or “FIAI” after his name; or
(iv) practises the profession of an Actuary; or
(b) being a member of the Institute, but not having a certificate of practice, represents that he is in practice, or practices as an Actuary,
shall be punishable on first conviction with fine which may extend to one lakh rupees, and on any subsequent conviction with imprisonment which may extend to one year, or with fine which may extend to two lakh rupees, or with both.
38. Penalty for using name of Institution, awarding degrees of actuarial science, etc.
38. Penalty for using name of Institution, awarding degrees of actuarial science, etc.—(1) Save as otherwise provided in this Act, no person shall—
(a) use a name or a common seal which is identical with the name or the common seal of the Institute or so nearly resembles it so as to deceive or as is likely to deceive the public; or
(b) award any degree, diploma or certificate or bestow any designation which indicates or purports to indicate the position or attainment of any qualification or competence in actuaryship similar to that of a member of the Institute; or
(c) seek to regulate in any manner whatsoever the profession of Actuaries.
(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings, which may be taken against him, be punishable with fine, which may extend on first conviction to fifty thousand rupees and on any subsequent conviction with imprisonment which may extend to one year, or, with fine which may extend to one lakh rupees, or with both.
(3) Nothing contained in this section shall apply to any University or other institution established by law or to any body affiliated to the Institute.
39. Companies not to engage in actuarial practice.
39. Companies not to engage in actuarial practice.—(1) No company, whether incorporated in India or elsewhere, shall practice as Actuaries.
(2) Any company contravening the provisions of sub-section (1) shall be punishable on first conviction with fine which may extend to ten thousand rupees, and on any subsequent conviction with fine which may extend to twenty-five thousand rupees.
40. Unqualified person not to sign documents.
40. Unqualified person not to sign documents.—(1) No person other than a fellow member of the Institute shall sign any document on behalf of an Actuary in practice or a firm of such Actuaries in his or its professional capacity.
(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable on first conviction with fine which may extend to fifty thousand rupees, and on any subsequent conviction with imprisonment which may extend to one year, or with fine which may extend to one lakh rupees, or with both.
41. Offences by companies.
41. Offences by companies.—(1) If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section—
(a) “company” means any body corporate and includes a firm or other association of individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.
42. Sanction to prosecute.
42. Sanction to prosecute.—No person shall be prosecuted under this Act except on a complaint made by or under the order of the Council or of the Central Government.
Chapter 7
QUALITY REVIEW BOARD
43. Establishment of Quality Review Board.
43. Establishment of Quality Review Board.—(1) The Central Government shall, by notification, constitute a Quality Review Board consisting of a Chairperson and not more than four Members:
Provided that in case the Board is constituted with two Members, one each shall be nominated by the Council and the Central Government, respectively.
(2) The Chairperson and Members of the Board shall be appointed from amongst the persons of eminence having experience in the field of law, education, economics, business, finance, accountancy or public administration.
(3) Two Members of the Board shall be nominated by the Council and other two Members shall be nominated by the Central Government.
44. Functions of Board.
44. Functions of Board.—The Board shall perform the following functions, namely:—
(a) to fix standards for the services provided by the members of the Institute;
(b) to review the quality of services provided by the members of the Institute including actuarial audit services; and
(c) to guide the members of the Institute to improve the quality of services and adherence to the various statutory and other regulatory requirements.
45. Procedure of Board.
45. Procedure of Board.—The Board shall follow in its meeting and in discharging its functions such procedure as may be prescribed.
46. Terms and conditions of Chairperson and Members of Board.
46. Terms and conditions of Chairperson and Members of Board.—The terms and conditions of service of the Chairperson and the Members of the Board, their place of meetings, remuneration and allowances shall be such as may be prescribed.
47. Expenditure of Board.
47. Expenditure of Board.—The expenditure of the Board shall be borne by the Council.
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