ACTUARIES
ACT, 2006 THE ACTUARIES ACT, 2006 [Act No. 35 OF 2006] [27th August, 2006.] An
Act to provide for regulating and developing the profession of Actuaries and
for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh
Year of the Republic of India as follows:-- (1)
This
Act may be called the Actuaries Act, 2006. (2)
It
extends to the whole of India. (3)
It
shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint: Provided that different dates may be appointed for
different provisions of this Act and any reference in any such provision to the
commencement of this Act shall be construed as a reference to the commencement
of that provision.[1] (1) In this Act, unless the context otherwise
requires,-- (a)
"Actuary"
means a person skilled in determining the present effects of future contingent events
or in finance modelling and risk analysis in different areas of insurance, or
calculating the value of life interests and insurance risks, or designing and
pricing of policies, working out the benefits, recommending rates relating to
insurance business, annuities, insurance and pension rates on the basis of
empirically based tables and includes a statistician engaged in such
technology, taxation, employees' benefits and such other risk management and
investments and who is a fellow member of the Institute; and the expression
"actuarial science" shall be construed accordingly; (b)
"Actuarial
Society" means the Actuarial Society of India registered under the
Societies Registration Act, 1860(21 of 1860. Bombay Act No. XXXIX of 1950) and
the Bombay Public Trusts Act, 1950; (c)
"appointed
day" means the date on which the Institute is constituted under
sub-section (1) of section 3; (d)
"Authority"
means the Appellate Authority referred to in section 32; (e)
"Board"
means the Quality Review Board constituted under sub-section (1) of section 43; (f)
"Council"
means the Council of the Institute as referred to in section 12; (g)
"fellow"
means a fellow member of the Institute; (h)
"Institute"
means the Institute of Actuaries of India constituted under section 3; (i)
"member"
means an individual whose name appears in the register of members maintained by
the Institute; (j)
"prescribed"
means prescribed by rules made under this Act; (k)
"President"
means the President of the Council; (l)
"register"
means the register of members maintained by the Institute under this Act; (m)
"specified"
means specified by regulations made under this Act; (n)
"Tribunal"
means a Tribunal established under sub-section (1) of section 16; (o)
"Vice-President"
means the Vice-President of the Council; (p)
"year"
means the period commencing on the 1st day of April of any year and ending on
the 31st day of March of the succeeding year. (2) Save as otherwise provided in this Act, a member of
the Institute shall be deemed "to be in practice" when individually
or in partnership with Actuaries in practice as a member or an employee of a
company, he, whether or not in consideration of remuneration received or to be
received,-- (i)
engages
himself in actuarial profession; or (ii)
offers
to perform or performs services involving the application of actuarial techniques
in the fields of insurance, pension, investment, finance and management; or (iii)
renders
such other services as, in the opinion of the Council, are or may be rendered
by an actuary in practice; or (iv)
is
in employment of a person engaged in one or more of the activities mentioned in
clauses (i), (ii) and (iii) above, and the words "to be in practice" with
their grammatical variations and cognate expressions shall be construed
accordingly. Explanation.--For
the purposes of this sub-section, the expression "company" includes a
public financial institution as defined in section
4A
Preamble 1 - ACTUARIES ACT, 2006PREAMBLE
Section 3 - Incorporation of Institute
(1) With effect from such date as the Central Government
may, by notification in the Official Gazette, appoint, all persons whose names
are entered in the register of the Actuarial Society at the commencement of
this Act and all persons who may thereafter have their names entered in the
register to be maintained under this Act, so long as they continue to have
their names borne on the register, are hereby constituted a body corporate by
the name of the Institute of Actuaries of India and all such persons shall be
known as members of the Institute.
(2)
The
Institute shall have perpetual succession and a common seal and shall have
power to acquire, hold and dispose of property, both movable and immovable, and
shall by its name sue or be sued.
(3)
The
head office of the Institute shall be situated at such place as may be decided
by the Central Government.
Section 4 - Transfer of assets, liabilities, etc., of Actuarial Society
On the appointed day,--
(a) all the assets and liabilities of the Actuarial
Society shall stand transferred to, and vested in, the Institute.
Explanation.--The assets of the Actuarial Society
shall be deemed to include all rights and powers and all properties, whether
movable or immovable, including, in particular, cash balances, deposits and all
other interests and rights in, or arising out of, such properties as may be in
the possession of the said Society and all books of account and other documents
relating to the same; and liabilities shall be deemed to include all debts,
liabilities and obligations of whatever kind;
(b) without prejudice to the provisions of clause (a),
all debts, obligations and liabilities incurred, all contracts entered into and
all matters and things engaged to be done by, with or for the Actuarial Society
immediately before that day, for or in connection with the purpose of the said
Society, shall be deemed to have been incurred, entered into or engaged to be
done by, with or for, the Institute;
(c) all sums of money due to the Actuarial Society
immediately before that day shall be deemed to be due to the Institute; and
(d) all suits and other legal proceedings instituted or
which could have been instituted by or against the Actuarial Society
immediately before that day may be continued or may be instituted by or against
the Institute.
Section 5 - Objects of Institute
The
objects of the Institute shall be--
(a)
to
promote, uphold and develop the standards of professional education, training,
knowledge, practice and conduct amongst Actuaries;
(b)
to
promote the status of the Actuarial profession;
(c)
to
regulate the practice by the members of the profession of Actuary;
(d)
to
promote, in the public interest, knowledge and research in all matters relevant
to Actuarial science and its application; and
(e)
to
do all such other things as may be incidental or conducive to the above objects
or any of them.
Section 6 - Entry of names in register
6. .--
(1) Any of the following persons shall be entitled to
have his name entered in the register, namely:--
(a)
any
person who immediately before the appointed day was an associate or a fellow
(including an honorary fellow) of the Actuarial Society;
(b)
any
person who has passed the examination conducted by the Actuarial Society and
has completed training either as specified by the said Society or as specified
by the Council, except any such person who is not a permanent resident of
India;
(c)
any
person who has passed such examination and completed such training, as may be
specified for membership of the Institute;
(d)
any
person who has passed such other examination and completed such other training
outside India as is specified as being equivalent to the examination and
training specified under this Act for membership of the Institute:
Provided that in the case of any person belonging
to any of the classes mentioned in this sub-section who is not permanently
residing in India, the Central Government or the Council may impose such
further conditions as it may deem necessary or expedient in the public
interest.
(2) Every person mentioned in clause (a) of sub-section
(1) may have his name entered in the register without the payment of any entrance
fee.
(3) Every person belonging to any of the classes
mentioned in clauses (b), (c) and (d) of sub-section (1) shall have his name
entered in the register on an application being made and granted in the
specified manner and on payment of such fees, as may be specified.
(4) The Council shall take such steps as may be
necessary for the purpose of having the names of all persons belonging to the
class mentioned in clause (a) of sub-section (1) entered in the register before
the appointed day.
(5) Notwithstanding anything contained in this section,
the Council may confer on any person honorary fellow membership, if the Council
is of the opinion that such person has made a significant contribution to the
profession of Actuary and thereupon the Council shall enter the name of such
person in the register but such person shall not have any voting rights in any
election or meetings of the Institute and shall not also be required to pay any
fee to the Institute.
Section 7 - Associates and fellows
(1) The members of the Institute shall be divided into
two classes designated respectively as associates and fellows.
(2)
Any
person other than a person to whom the provisions of sub-section (3) apply,
shall, on his name being entered in the register, be deemed to have become an
associate and as long as his name remains so entered, shall be entitled to use
the letters "AIAI" after his name to indicate that he is an
associate.
(3)
Any
person who was a fellow of the Actuarial Society and who is entitled to have
his name entered in the register under clause (a) of sub-section (1) of section
6 shall be entered in the register as a fellow.
(4)
Any
person whose name is entered in the register as fellow shall, so long as his
name remains so entered, be entitled to use the letters "FIAI" after
his name to indicate that he is a fellow.
Section 8 - Honorary, affiliate and student members
(1)
The
Council may choose, in such manner as may be specified, any person of eminence
in matters relating to and of interest to the profession of Actuary as an
honorary member of the Institute provided that he is not practicing as an
Actuary.
(2)
Any
person, who is a fellow member, or is a holder of membership considered
equivalent to the fellow membership of the Institute, of any other institution
similar to the Institute, whether within or outside India, may be admitted as
an affiliate member for such period, and on such terms and conditions as may be
specified.
(3)
Any
person who enrolls himself for examination of the Institute, and possesses such
academic qualifications as may be specified, may be admitted as a student
member of the Institute on such terms and conditions as may be specified.
(4)
An
honorary member or an affiliate member or a student member shall have no right
to vote on any matter or resolution in any meeting of the Institute.
Section 9 - Certificate of practice
(1)
No
member of the Institute shall be entitled to practice unless he fulfils the
qualifications as may be specified and obtains from the Council a certificate
of practice.
(2)
A
member who desires to be entitled to practice shall make an application in such
form and pay such annual fee for certificate of practice as may be specified
and such fee shall be payable on or before the first day of April in each year.
(3)
The
certificate of practice obtained under sub-section (1) may be cancelled by the
Council under such circumstances as may be specified.
Section 10 - Members to be known as Actuaries
Every member of the Institute in practice shall,
and any other member may, use the designation of an Actuary and no member using
such designation shall use any other description whether in addition thereto or
in substitution therefore:
Provided
that nothing contained in this section shall be deemed to prohibit any such
member from adding any other description or letters to his name, if entitled
thereto, to indicate membership of such other Institute, whether in India or
elsewhere, as may be recognised in this behalf by the Council, or any other
qualification that he may possess, or to prohibit a firm, all the partners of
which are members of the Institute and in practice, from being known by its
firm name as Actuaries.
Section 11 - Disqualifications
Notwithstanding
anything contained in section 6, a person shall not be entitled to have his
name entered in, or borne on, the register if he--
(a)
has
not attained the age of twenty-one years at the time of his application for the
entry of his name in the register; or
(b)
is
of unsound mind and stands so adjudged by a competent court; or
(c)
is
an undischarged insolvent; or
(d)
being
a discharged insolvent, has not obtained from the court a certificate stating
that his insolvency was caused by misfortune and without any misconduct on his
part; or
(e)
has
been convicted by a competent court whether within or outside India, of an
offence involving moral turpitude and punishable with imprisonment or of an
offence, not of a technical nature, committed by him in his professional
capacity unless in respect of the offence committed he has either been granted
a pardon or, on an application made by him in this behalf, the Central
Government has, by an order in writing, removed the disqualification; or
(f)
has
been removed from the membership of the Institute on being found on inquiry to
have been guilty of a professional or other misconduct:
Provided that a person who has been removed from
the membership for a specified period shall not be entitled to have his name
entered in the Register until the expiry of such period.
Section 12 - Composition of Council of Institute
(1) There shall be a Council of the Institute for the
management of the affairs of the Institute and for discharging the functions
assigned to it by or under this Act.
(2) The Council shall be composed of the following
persons, namely:--
(a) a minimum of nine and not more than twelve persons
from amongst fellow members to be elected by the fellow and the associate
members of the Institute in such manner as may be prescribed:
Provided that a fellow of the Institute, who has
been found guilty of any professional or other misconduct and whose name is
removed from the Register or has been awarded penalty of fine, shall not be
eligible to contest election,--
(i) in case of misconduct falling under the Schedule of
this Act [except Part IV(B)], for a period of three years; or
(ii) in case of misconduct falling under Part IV(B) of
the Schedule of this Act, for a period of six years,
after the completion of the period of removal of
name of the fellow from the Register or the payment of fine is made, as the
case may be; and
(b) (i) an officer not below the rank of Joint
Secretary to the Government of India, to be nominated by the Central Government
to represent the Ministry of Finance;
(ii) one person from the Insurance Regulatory and
Development Authority constituted under the Insurance Regulatory and
Development Authority Act, 1999(41 of 1999) nominated by the Central
Government; and
(iii) not more than two persons having knowledge in
the field of life insurance, general insurance, finance, economics, law,
accountancy or any other discipline which in the opinion of the Central Government,
would be useful to the Council, to be nominated in such manner as may be
prescribed:
Provided that till such time as the Council is
constituted under this Act, the Executive Committee of the Actuarial Society
shall discharge all the functions and shall have all the powers of the Council.
(3) No person holding a post under the Central
Government or a State Government, as the case may be, shall be eligible for
election to the Council under clause (a) of sub-section (2).
(4) One-third of the members of the Council referred to
in clause (a) of sub-section (2) shall retire as soon as may be on the
expiration of every second year by rotation but shall be eligible for
re-election.
(5) Any person nominated under clause (b) of
sub-section (2) shall hold office for a period of six years from the date of
his nomination unless he is removed earlier by the Central Government and shall
be eligible for re-nomination:
Provided that he shall be given an opportunity of
being heard before such removal.
Section 13 - Annual general meetings
The
Council shall every year hold an annual general meeting of the Institute to
elect its members under clause (a) of sub-section (2) of section 12, or to
discuss any matter which it deems fit, and not more than fifteen months shall
elapse between the date of one annual general meeting of the Institute and that
of the next :
Provided
that from the appointed day the Institute may hold its first annual general
meeting within a period of not more than eighteen months and if such general
meeting is held within that period, it shall not be necessary for the Institute
to hold any general meeting in that year :
Provided
further that the Central Government may, for sufficient reasons, extend the
time within which any general meeting shall be held.
Section 14 - Re-election to Council
(1)
Subject
to the provisions of sub-section (2), a member of the Council elected under
clause (a) of sub- section (2) of section 12 shall be eligible for re-election
but not for more than two consecutive terms.
(2)
A
member of the Council, who is or has been elected, as the President under
subsection (1) of section 17, shall not be eligible for election or nomination
as a member of the Council.
Section 15 - Settlement of disputes regarding election
In case of any dispute regarding any
election under clause (a) of sub-section (2) of section 12, the aggrieved
person may make an application within thirty days from the date of the
declaration of the result of the election to the Council which shall forward
the same forthwith to the Central Government.
Section 16 - Establishment of Tribunal
(1) On receipt of any application under section 15, the
Central Government shall, by notification, establish a Tribunal consisting of a
Presiding Officer and two other Members to decide such dispute and the decision
of such Tribunal shall be final.
(2) A person shall not be qualified for appointment,--
(a)
as
a Presiding Officer of the Tribunal unless he has been a member of the Indian
Legal Service and has held a post in Grade I of the service for at least three years;
(b)
as
a Member unless he has been a member of the Council for at least one full term
and who is not a sitting Member of the Council or who has not been a candidate
in the election under dispute; and
(c)
as
a Member unless he holds the post of a Joint Secretary to the Government of
India or any other post under the Central Government carrying a scale of pay
which is not less than that of a Joint Secretary to the Government of India.
(3) The terms and conditions of service of the
Presiding Officer and Members of the Tribunal, their place of meetings,
remuneration and allowances shall be such as may be prescribed.
(4) The expenses of the Tribunal shall be borne by the
Council.
Section 17 - President Vice-President and Honorary Secretary
(1) The Council shall, at its first meeting, elect
three of its members from amongst persons referred to in clause (a) of
sub-section (2) of section 12, to be respectively the President, Vice-President
and Honorary Secretary thereof, and as often as the office of the President,
Vice-President and Honorary Secretary falls vacant, the Council shall choose
one of the member in the same manner:
Provided that the Chairperson of the Council of the
Actuarial Society shall continue to hold such office as President after the
commencement of this Act, until such time as a President is elected under the
provisions of this sub-section.
(2)
The
President shall be the Chief Executive Officer of the Council.
(3)
The
President, the Vice-President or the Honorary Secretary shall hold office for a
period of two years from the date on which he is chosen provided that he
continues to be a member of the Council.
(4)
The
President and the Vice-President shall, notwithstanding the expiration of his
term, continue to hold office until his successor enters upon his office.
(5)
In
the event of occurrence of any vacancy in the office of the President, the
Vice-President shall act as the President until a new President is elected in
accordance with the provisions of this section to fill such vacancy and enters
upon his office.
(6)
When
the President is unable to discharge his functions owing to absence, illness or
any other cause, the Vice-President shall discharge his functions until the
President resumes his duties.
Section 18 - Resignation from membership and filling up of casual vacancies
(1)
Any
member of the Council may at any time resign his membership by writing under
his hand addressed to the President, and the seat of such member shall become
vacant when such resignation is accepted and notified by the Council.
(2)
A
member of the Council, other than a member nominated under clause (b) of
subsection (2) of section 12 shall be deemed to have vacated his seat if he is
declared by the Council to have been absent without sufficient reason from
three consecutive meetings of the Council, or of any of the Committees
constituted by the Council, and of which he is a member or he has been found
guilty of any professional or other misconduct and awarded penalty of fine or
if his name is, for any cause, removed from the register under the provisions
of sections 24 and 30.
(3)
A
casual vacancy in the office of a member of the Council shall be filled by
fresh election or by nomination by the Central Government, as the case may be,
and the person elected or nominated to fill the vacancy shall hold office only
for the remainder of the term for which the member in whose place he was
elected or nominated would have held that office:
Provided that no election shall be held to fill a
casual vacancy occurring within one year prior to the date of the expiration of
the term of such member.
(4)
No
act done by the Council shall be called in question on the ground merely of the
existence of any vacancy in, or defect in the constitution of the Council.
Section 19 - Functions of Council
(1)
The
duty of carrying out the functions under the provisions of this Act shall be
vested in the Council.
(2)
In
particular and without prejudice to the generality of the foregoing power, the
functions of the Council shall include--
(a)
the
holding of examination of the candidates for enrolment and specifying fees
therefore;
(b)
the
specifying of qualifications for entry in the register;
(c)
the
recognition of foreign qualifications and training for the purposes of
enrolment;
(d)
the
granting of or refusal to grant the certificate of practice under this Act;
(e)
the
maintenance and publication of a register of persons qualified to practice as
Actuaries;
(f)
the
levy and collection of fees from members, students, examinees and other
persons;
(g)
the
removal of names from the register and the restoration to the register of names
which have been removed;
(h)
the
regulation arid maintenance of the status and standard of professional
qualifications of members of the Institute;
(i)
to
issue guidelines for the observance of the members, including the student
members;
(j)
to
receive gifts, grants, donations or benefactions from the Central or State
Governments and to receive bequests, donations and transfer of movable or
immovable properties from testators, donors or transferors, as the case may be;
(k)
co-operating
with educational or other institutions in any part of the world having objects
wholly or partly similar to those of the Institute by exchange of members and
generally in such manner as may be conducive to achievement of their common
objects;
(l)
instituting
and awarding fellowships, scholarships, prizes and medals;
(m)
giving
gifts, grants, donations or benefactions to other institutions or bodies having
objects similar to those of the Institute;
(n)
the
carrying out, by granting financial assistance to persons other than members of
the Council, or in any other manner, of research in the actuarial science;
(o)
the
maintenance of a library and publication of books, journals and periodicals
relating to actuarial science;
(p)
the
exercise of disciplinary powers conferred by this Act;
(q)
establishing
such regional council or councils as may be decided from time to time and
fixing their headquarters; and
(r)
doing
all such things as may be necessary, incidental or conducive to the attainment
of all or any of the objects of the Institute.
Section 20 - Staff, remuneration and allowances
(1) For the efficient performance of its functions, the
Council may?
(a)
appoint
an Executive Director, a Treasurer and such other officers and employees as it
deems necessary and fix their salaries, fees, allowances and other conditions
of service; and
(b)
fix
the allowances of the President, the Vice-President, the Honorary Secretary and
other members of the Council and its Committees, in such manner as may be
specified.
(2) The Executive Director of the Council shall be
entitled to participate in the meetings of the Council but shall not be
entitled to vote thereat.
Section 21 - Committees of Council
(1) The Council may constitute such committees from
amongst its members, and co-opt therein persons who are not members of the
Institute, as it deems necessary for the purpose of carrying out the provisions
of this Act:
Provided that the number of co-opted members shall
not exceed one-third of the total membership of the committee.
(2) Every committee constituted under this section
shall elect its own Chairman:
Provided that--
(i)
where
the President is a member of such committee, he shall be the Chairman of such
committee, and in his absence, the Vice-President, if he is a member of such
committee, shall be its Chairman; and
(ii)
where
the President is not a number of such committee but the Vice-President is a
member, he shall be its Chairman.
(3) The committees shall exercise such functions and be
subject to such conditions as may be specified.
Section 22 - Finances of Council
(1) There shall be established a fund under the
management and control of the Council into which shall be paid all moneys
(including donations and grants) received by the Council and out of which shall
be met all expenses and liabilities incurred by the Council.
(2)
The
Council may invest any money for the time being standing to the credit of the
fund in any security as it may deem prudent consistent with the considerations
of security of such investments and maximum returns thereon.
Explanation.-- For the purposes of this
sub-section, the expression "securities" shall have the meaning
assigned to it in section
2 of the Securities Contracts
(Regulation) Act, 1956(42 of 1956), as amended from time to time.
(3)
The
Council shall keep proper accounts of the fund distinguishing capital account
from revenue account.
(4)
The
annual accounts of the Institute shall be subject to audit by a Chartered
Accountant in practice within the meaning of the Chartered Accountants Act,
1949(38 of 1949) to be appointed annually by the Council:
Provided that no member of the Council who is a
Chartered Accountant or a person who is in partnership with such member shall
be eligible for appointment as an auditor under this sub-section.
(5)
As
soon as may be practicable at the end of each year, but not later than the 30th
day of September of the year next following, the Council shall cause to be
published in the Gazette of India, a copy of the audited accounts and the
report of the Council for that year and copies of the said accounts and report shall
be forwarded to the Central Government and to all the members of the Institute.
(6)
The
Council may borrow from a scheduled bank, as defined in the Reserve Bank of
India Act, 1934(2 of 1934), or from any public financial institution--
(a)
any
money required for meeting its liabilities on capital account on the security
of the fund or on the security of any other asset, for the time being belonging
to it; or
(b)
for
the purpose of meeting current liabilities, pending the receipt of income, by
way of temporary loan or overdraft.
Explanation.--The expression "public financial
institution" means a financial institution specified in section 4A of
the Companies Act, 1956(1 of 1956).
Section 23 - Register
(1) The Council shall maintain in the specified manner
a register of the members of the Institute.
(2)
The
register shall include the following particulars about every member of the
Institute, namely:--
(a)
his
full name, date of birth, domicile, residential and professional addresses;
(b)
the
date on which his name is entered in the register;
(c)
his
qualifications;
(d)
whether
he holds a certificate of practice; and
(e)
any
other particulars which may be specified.
(3)
The
Council shall cause to be published in such manner as may be specified a list
of members as on the 1st day of April each year, and shall, if requested to do
so by any such member, send him a copy of such list, on payment of such amount
as may be specified.
(4)
Every
member of the Institute shall, on his name being entered in the register, pay
such annual membership fee as may be specified by the Council.
Section 24. - Removal of name from Register
The
Council may, by order, remove from the register the name of any member of the
Institute--
(a)
who
is dead; or
(b)
from
whom a request has been received to that effect; or
(c)
who
has not paid any specified fee required to be paid by him; or
(d)
who
is found to have been subject to, at the time when his name was entered in the
register, or who at any time thereafter has become subject to, any of the
disqualifications mentioned in section 11; or
(e)
who
for any other reason has ceased to be entitled to have his name borne on the
register.
Section 25 - Re-entry in register
The Council may re-enter the name of a
member whose name has been removed from the register for reasons mentioned in
clauses (b), (c), (d) and (e) of section 24, by an order, and on paying such
fees, and after satisfying such conditions and requirements as may be
specified.
Section 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 Committees 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 32 - Constitution of Appellate Authority
The
Appellate Authority constituted under sub-section (1) of section 22A 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;".
Section 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.
Section 34 - Allowances, conditions of service of Members and procedure, etc., of Authority
The provisions of section 22C, section 22D and section 22F of
the Chartered Accountants Act, 1949(38 of 1949) shall apply to the Authority in
relation to allowances and terms and conditions of service 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.
Section 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.
Section 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.
Section 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)
practices
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.
Section 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 actuary ship 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.
Section 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.
Section 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.
Section 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.
Section 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.
[1] Enforcement date for the Actuaries Act,
2006 as per notification no: SO1912(E) dated 08.11.2006, is 10.11.2006.