Notice of Disciplinary Determination

On April 29, 2018, the Society of Actuaries (“SOA”) convened a Discipline Committee to review a matter referred by the Actuarial Board for Counseling and Discipline ("ABCD"). The Discipline Committee determined that Scott Allen, ASA, should be expelled from the SOA for material violations of the Code of Professional Conduct (“Code”), specifically Precepts 1 and 9, effective May 24, 2018.

Mr. Allen pleaded guilty to multiple violations of federal securities law on March 19, 2012, and was sentenced to two years supervised release on March 15, 2016.  Per his plea, Mr. Allen knowingly misappropriated material confidential information from his employer on two separate occasions, and shared this information with a friend to obtain unlawful financial gains through insider trading.  Following the conclusion of the criminal and civil court proceedings, the matter was investigated by the ABCD then referred to the SOA.

Mr. Allen materially violated Precept 91 by disclosing confidential information learned in the course of his employment to a friend for purposes of insider trading.  His violations of federal securities law likewise materially violated Precept 12 of the Code, specifically Annotation 1-43, as they reflected adversely on the actuarial profession.  The Discipline Committee found Mr. Allen’s conduct egregious, as his material violations of the Code were directly related to his professional responsibilities. As a profession, actuaries hold positions of confidence and trust with their employers and clients, and the Discipline Committee believed his abuse of his position was a violation of the fundamental expectations of actuaries. As such, the Discipline Committee determined that Mr. Allen should be expelled from the SOA for his material violations of the Code’s professional and ethical standards.

All members of the SOA are reminded of their responsibility to follow the Code of Professional Conduct.   

1 Precept 9:  An Actuary shall not disclose to another party any Confidential Information unless authorized to do so by the Principal or required to do so by Law.

2 Precept 1: An Actuary shall act honestly, with integrity and competence, and in a manner to fulfill the profession’s responsibility to the public and to uphold the reputation of the actuarial profession.

3 Precept 1, Annotation 1-4: An Actuary shall not engage in any professional conduct involving dishonesty, fraud, deceit, or misrepresentation or commit any act that reflects adversely on the actuarial profession.