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I recall at a session last year that even non-credentialed 5500 preparers are somehow accountable to the IRS for their errors, even though they have no 'initials' to lose. Does anyone recall hearing this and what the penalty would be?

Another question - there is a small business owner in my city who verbally calls himself an actuary, and lists himself as an 'Actuarial Consultant'. Is this legal? He doesn't have a single credential to his name. My concern is a lot of bad advice he has been giving in the guise of being 'actuarial'.

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I don't know about the first question, but the 2nd is often discussed. The sad truth is that because the guy has no credentials, there is nothing that any organization can do because they don't have any jurisdiction. The Joint Board or the SOA, ASPPA, Academy, Conference, etc. can only discipline their members. They can't do anything to someone who isn't a member. I guess some actuary could sue him if he could prove damages, but I think that would be difficult.

I think the best you can do is just make sure all of the professionals in town know he is not an actuary. I don't really see anything wrong with calling yourself an "actuarial consultant" even if you aren't able to sign an Actuarial Certification.

There are lots of bookkeepers who aren't CPAs and lots of healers who aren't doctors. If he is doing bad work, eventually the marketplace will take care of him.

Plus, there are lots of TPA firms doing DB work without any actuaries on staff. I may not like it, but I recognize it at a business reality.

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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2. Might be an opportunity for a credentialed actuary to create a relationship?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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