On 26 November 2015, the appeal tribunal panel (ATP) considered an appeal against a finding of misconduct made by the disciplinary tribunal panel (DTP) of the Institute and Faculty of Actuaries on 11 November 2014 against Mr Pablo Luis Morales regarding his work in the capacity of an actuary and director at an insurance company.
The findings of the DTP were that Mr Morales should not have authorised the signing of accounts while they contained a reserving figure he thought was inappropriate, against the background of having done no further work to try to reconcile
the differences, and while they contained a statement that the directors, of whom he was one, were confident of the level of reserves when he was emphatically not. The ATP found that these were findings open to the DTP on the evidence - indeed, on Mr Morales' own evidence in large part - and that it would have made the same findings on the same evidence.
The ATP also found that the DTP clearly had regard to the fact that Mr Morales had secured an outside review, that he had taken and followed legal advice, that the accounts contained notes and that Mr Morales had communicated his concerns to fellow board members. The ATP considered that it appeared, from the DTP's reasons, that it regarded this as significant mitigation but not as a defence to the charge. Having considered the same evidence, the ATP was of that view that it would have made the same finding.
The ATP rejected Mr Morales' argument that, since his actions were exclusively those of a director, the IFoA did not have the power to discipline him, holding instead that his conduct fell within the definition of misconduct contained within paragraph 1.6 of the scheme. The appeal against the finding of misconduct was therefore dismissed and the finding and sanction remained as:
- Costs in the sum of £8,500, exclusive of VAT.