The Actuaries Act, 2006
Administered Ministry: Ministry of Finance / Department of Financial Services
Section
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 member 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.
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 member 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).
(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.
(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.
(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 docs
(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.
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 docs
(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.
(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.
(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.
(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.
(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. 1 docs
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;".
"(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.
(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.
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) 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 practises 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.
(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 practises 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 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.
(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.
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.
(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.
(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.