Statement from the CAS Board of Directors
On February 25, 2008, five senior insurance executives, including two members of the Casualty Actuarial Society (CAS), were convicted in United States federal court on multiple counts of securities fraud and conspiracy. The executives have indicated their intention to appeal the convictions. However, the CAS Board of Directors decided that it is appropriate at this time to communicate how the CAS leadership is addressing this matter.
By action taken at its March 2008 meeting, the CAS Board of Directors has asked the Actuarial Board for Counseling and Discipline (ABCD) to investigate whether CAS Fellows Ronald Ferguson and Christopher Garand violated the Code of Professional Conduct. Depending on the results of the ABCD investigation, the CAS will then consider appropriate action in consultation with legal counsel and in accordance with the CAS Bylaws and Rules of Procedure for Disciplinary Actions, being mindful of potential conflicts of interest that may arise in this matter, confidentiality requirements, and all applicable “due process” protections as set forth therein.
CAS members may be aware of the existence of a letter signed by a number of actuaries seeking leniency by the court in the sentencing of one of the convicted CAS members. The letter was not sanctioned by the CAS and is not an official statement of the CAS or the CAS Board. It represents the personal opinions of those who signed it.
The CAS is founded on high standards of professional conduct and practice. Every CAS member has the responsibility to practice in accordance with the Code of Professional Conduct, which is shared by all of the United States-based actuarial organizations. The CAS Board has taken its action solely to further and preserve the integrity of the Code of Professional Conduct.
CAS members who have questions regarding the appropriateness of their actuarial work are strongly encouraged to seek counsel from the appropriate body in the jurisdiction where they practice. For CAS members practicing in the U.S., the ABCD provides confidential guidance to actuaries who ask for assistance in interpreting and complying with the Code and/or actuarial standards of practice.
The Code of Professional Conduct and information about the ABCD can be found on the ABCD Web Site. The CAS Bylaws and Rules of Procedure for Disciplinary Actions can be accessed on the CAS Web Site.