On 11 December 2020 the Adjudication Panel considered an allegation of misconduct against Mr Rohit Siqueira FIA (the respondent).
It was alleged that that while appointed as the scheme actuary to a retirement benefits plan (the scheme): in the triennial actuarial valuations as at April 2015 and at April 2018, the value he placed on the scheme’s shareholding in employer related investments (ERIs) was significantly over-valued, causing the contributions deemed payable to the scheme to fund its substantial deficit to be understated. His actions were alleged to be in breach of the principles of competence and care and compliance in the Actuaries’ Code (the Code) and constituted misconduct in terms of Rule 4.2 of the Disciplinary and Capacity for Membership Schemes of the IFoA (effective 1 February 2018).
It was also alleged that the actuarial valuation basis used in the actuarial valuation as at 6 April 2018 was too low and at the weaker end of a range of reasonability, and weaker than that used in the FRS102 assessment of the liabilities of the principal employer. This allegedly being in breach of principles 1, 3 and the reliability objective as set out in TAS 100: Principles for Technical Actuarial Work (eff ective 1 July 2017). This was not found to be capable of proof and therefore there was no associated prima facie case of misconduct.
However, the panel did find evidence to support the primary allegation relating to the scheme’s shareholding in ERIs and the alleged breaches of the Code. The panel determined that the facts in relation to the primary allegation disclosed a prima facie case of misconduct.
In considering sanction the panel took into account all relevant information, including the respondent’s insight, remorse and remedial action and that there was no evidence of harm. It was satisfied that the appropriate and proportionate sanction in this case was a reprimand.
A full copy of the published determination can be found at bit.ly/3adykm5
