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Title: SYSTEMS%20OF%20FINANCIAL%20ANALYSTS%20TRAINING


1
SYSTEMS OF FINANCIAL ANALYSTS TRAINING
2
Contents
  • Certificate in Finance and Investment of the
    Faculty of Actuaries and Institute of Actuaries
    (UK)
  • Chartered Financial Analyst (CFA) of the
    Chartered Financial Analyst Institute (USA)
  • Certified International Investment Analyst (CIIA)
    Association of Certified International Investment
    Analysts
  • The Association of Corporate Treasurers (UK)
  • The Training Center for Actuaries and Financial
    Analysts (Ukraine)

3
Job
  • An analyst will write reports on the companies
    they are supposed to cover, trying to describe
    the businesses and their opinion of the company's
    investment potential, usually from a fundamental
    analysis standpoint. They also summarize that
    report with a rating, such as "buy", "sell",
    "market perform", "overweight", "hold", etc.

4
  • Financial analysts, also called securities
    analysts and investment analysts, work for banks,
    insurance companies, mutual and pension funds,
    securities firms, and other businesses, helping
    these companies or their clients make investment
    decisions. Financial analysts employed in
    Commercial lending perform "balance sheet
    analysis," examining the audited financial
    statements and corollary data in order to assess
    lending risks. In a stock brokerage house or in
    an investment bank, they read company financial
    statements and analyze commodity prices, sales,
    costs, expenses, and tax rates in order to
    determine a company's value and project future
    earnings. In any of these various institutions,
    the analyst often meets with company officials to
    gain a better insight into a company's prospects
    and to determine the company's managerial
    effectiveness. Usually, financial analysts study
    an entire industry, assessing current trends in
    business practices, products, and industry
    competition. They must keep abreast of new
    regulations or policies that may affect the
    industry, as well as monitor the economy to
    determine its effect on earnings.

5
  • Financial analysts in investment banking
    departments of securities or banking firms often
    work in teams, analyzing the future prospects of
    companies that want to sell shares to the public
    for the first time. They also ensure that the
    forms and written materials necessary for
    compliance with Securities and Exchange
    Commission regulations are accurate and complete.
    They may make presentations to prospective
    investors about the merits of investing in the
    new company. Financial analysts also work in
    mergers and acquisitions departments, preparing
    analyses on the costs and benefits of a proposed
    merger or takeover. There are buy-side analysts
    and sell-side analysts.
  • Some financial analysts, called ratings analysts
    (who are often employees of ratings agencies),
    evaluate the ability of companies or governments
    that issue bonds to repay their debt. On the
    basis of their evaluation, a management team
    assigns a rating to a company's or government's
    bonds. Other financial analysts perform budget,
    cost, and credit analysis as part of their
    responsibilities.

6
Financial analysis
  • Financial analysis refers to an assessment of the
    viability, stability and profitability of a
    business, sub-business or project.
  • It is performed by professionals who prepare
    reports using ratios that make use of information
    taken from financial statements and other
    reports. These reports are usually presented to
    top management as one of their basis in making
    business decisions. Based on these reports,
    management may
  • Continue or discontinue its main operation or
    part of its business
  • Make or purchase certain materials in the
    manufacture of its product
  • Acquire or rent/lease certain machineries and
    equipments in the production of its goods
  • Issue stocks or negotiate for a bank loan to
    increase its working capital.
  • other decisions that allow management to make an
    informed selection on various alternatives in the
    conduct of its business.

7
Goals
  • Financial analysts often assess the firm's
  • 1. Profitability - its ability to earn income and
    sustain growth in both short-term and long-term.
    A company's degree of profitability is usually
    based on the income statement, which reports on
    the company's results of operations
  • 2. Solvency - its ability to pay its obligation
    to debtors and other third parties in the
    long-term

8
  • 3. Liquidity - its ability to maintain positive
    cash flow, while satisfying immediate
    obligations
  • Both 2 and 3 are based on the company's balance
    sheet, which indicates the financial condition of
    a business as of a given point in time.
  • 4. Stability - the firm's ability to remain in
    business in the long run, without having to
    sustain significant losses in the conduct of its
    business. Assessing a company's stability
    requires the use of both the income statement and
    the balance sheet, as well as other financial and
    non-financial indicators.

9
Education
  • It is often required for analysts to earn an MBA
    or a professional qualification such as Chartered
    Financial Analyst designation (CFA) in the United
    States of America, or Certified International
    Investment Analyst designation (CIIA) in Europe
    and Asia, to advance beyond a certain level
    within a firm. Alternatively, analysts may earn a
    Master of Science in Finance (MSF).

10
Faculty of Actuaries and Institute of
Actuaries(UK)
  • http//www.actuaries.org.uk

11
Introduction to the Education System
  • There are four stages
  • Core Technical stage
  • Core Applications stage
  • Specialist Technical stage
  • Specialist Applications stage

This is shown diagrammatically as
12
Core Technical Stage
  • In the Core Technical stage there are nine
    subjects
  • CT1 Financial Mathematics
  • CT2 Finance and Financial Reporting
  • CT3 Probability and Mathematical Statistics
  • CT4 Models
  • CT5 Contingencies
  • CT6 Statistical Methods
  • CT7 Economics
  • CT8 Financial Economics
  • CT9 Business Awareness Module

13
  • Each of CT1 - CT8 will be examined by one paper
    of three hours duration.
  • CT9 Business Awareness Module involves a 2-day
    residential course, with pre-course study and a
    post-course test, that has been designed to help
    people joining the Actuarial Profession
    understand
  • the business environment they will be working in,
    including the related challenges
  • how to tackle business related problems
  • their professional responsibilities
  • the need to equip themselves for lifelong
    learning
  • The module consists of internet-based study,
    attendance at a two day course and internet-based
    assessment.

14
Core Applications Stage
  • In the Core Applications stage we will be
    covering actuarial concepts.
  • The main Core Applications subject will be
    assessed by two papers each of three hours in
    length, one paper covering assets and one
    covering liabilities and asset-liability
    management. The two papers will be added together
    to give a single mark for
  • CA1 Core Applications Concepts
  • CA11 one paper - assets
  • CA12 one paper - liabilities and asset-liability
  • management

15
  • CA2 Modelling requires attendance at a two day
    course with a practical data handling assessment
    on the second day. The purpose of the first day
    is to ensure that all students understand the
    nature of the assessment and are familiar with
    the software provided and on the second day the
    assessment takes place.
  • The successful candidate will be able to
    demonstrate
  • Analysis and summary of data
  • Development of a model with audit trail
  • Ability to apply results
  • Interpretation of results within a general
    business context
  • Communication of results to a technical audience

16
  • CA3 Communications has two questions, each
    testing a different type of written
    communication. The paper is of three hours
    duration.

17
Specialist Technical stage
  • Students will in future be required to pass two
    subjects at the Specialist Technical stage. There
    are seven Specialist Technical subjects
  • ST0 Alternative Specialist Technical
  • ST1 Health and Care Specialist Technical
  • ST2 Life Insurance Specialist Technical
  • ST3 General Insurance Specialist Technical
  • ST4 Pensions and other Benefits Specialist
    Technical
  • ST5 Finance and Investment Specialist Technical A
  • ST6 Finance and Investment Specialist Technical B
  • Each of ST1 - ST6 will be tested by one
    examination paper of three hours in length.

18
Specialist Applications stage
  • There are seven Specialist Applications subjects.
    Students required to pass one subject chosen
    from
  • SA0 Research Dissertation Specialist
    Applications
  • SA1 Health and Care Specialist Applications
  • SA2 Life Insurance Specialist Applications
  • SA3 General Insurance Specialist Applications
  • SA4 Pensions and other Benefits Specialist
    Applications
  • SA5 Finance Specialist Applications
  • SA6 Investment Specialist Applications
  • Each of SA1SA6 are tested by an examination
    paper of three hours duration.

19
UK Practice Modules
  • A UK Practice Module has to be taken by students
    working in the UK. This is tested by multiple
    choice examinations each of one and a half hours
    duration.
  • The first part is common to all practice areas
    and tests the generic principles of UK Financial
    Services.
  • The second part tests UK business practice,
    regulation, legislation and professional guidance
    notes in specific areas.

20
Qualifications
  • 1. Class of Associate
  • Students who have completed all but the
    Specialist Technical and Specialist Applications
    subjects and who have completed the appropriate
    professionalism course and meet the work-based
    skills requirement, may apply to transfer to the
    class of Associate member.
  • Students do not automatically transfer to
    Associate prior to taking the Specialist
    Technical and Specialist Applications subjects,
    but can apply to transfer to the class of
    Associate if they no longer wish to continue
    taking examinations.

21
  • 2. Class of Fellow
  • Students will be admitted to the Fellowship on
    having successfully completed or passed the Core
    Technical subjects, Core Applications subjects,
    two of the Specialist Technical subjects, one of
    the Specialist Applications subjects and having
    met the work-based skills requirement.
  • An applicant for admission to the Institute
    Class of Fellow must have attained the age of 23
    years.

22
  • 3. Diploma in Actuarial Techniques
  • The joint Diploma in Actuarial Techniques was
    introduced in April 1996. The Diploma in
    Actuarial Techniques will be sent directly to
    students completing all of the Core Technical
    stage subjects CT1, CT2, CT3, CT4, CT5, CT6,
    CT7, CT8 and CT9.

23
  • 4. Certificate in Finance and Investment
  • The Certificate in Finance and Investment is a
    joint certificate and will be sent to all
    students of the Faculty and Institute of
    Actuaries who complete or are exempted from CT1,
    CT2, CT4, CT7, CT8, CT9 and CA1 .

24
Chartered Financial Analyst Institute (USA)
  • http//www.cfainstitute.org/

25
  • Chartered Financial Analyst (CFA) is a
    professional designation offered by the CFA
    Institute (formerly known as Association for
    Investment Management and Research (AIMR)) to
    financial analysts who complete a series of three
    examinations and work for at least four years in
    the investment decision making process. CFA
    charterholders are also obliged to adhere to a
    strict Code of Ethics and Standards (a commitment
    that, above all else, you put the interests of
    your clients first. ) governing their
    professional conduct.
  • The CFA designation is a qualification for people
    engaged in the financial and investment sector.

26
  • From 1963 (when the CFA designation was first
    used) to 2006, approximately 69,600 people from
    126 different countries have been awarded the
    right to use the CFA designation. As of 2006,
    more than 116,000 more people are currently
    enrolled to take one of the examinations.
  • The CFA program began in the United States, but
    has become increasingly international with many
    people becoming charterholders across Europe,
    Asia and Australasia. By 2003 fewer than half the
    candidates in the CFA program were based in the
    US and Canada, with most of the other candidates
    based in Asia or Europe. India and China have
    shown some of the highest growth from 2005-2006
    with increases of 25 and 53 respectively in the
    total number of charterholders.

27
  • The basic requirements for participation in the
    CFA program include holding or being in the final
    year of (a) four-year university degree (or
    international equivalent) or having four years of
    qualified, professional work experience in an
    investment decision-making process. The program
    focuses on portfolio management and financial
    analysis, and provides a generalist knowledge of
    other areas of finance.

28
The CFA exam
  • Candidates generally take one exam per year over
    three years and are written at a postgraduate
    level for financial professionals. Exams are
    challenging, with only 39 passing the Level I
    exam in December 2006. The June 2006 Level I Exam
    resulted in a worldwide pass rate of 40 Europe
    achieved the highest pass rate for that exam with
    57. The Level II and III passing rates for 2006
    were 48 and 76 respectively.

29
  • The Level I study program emphasizes tools and
    inputs and includes an introduction to asset
    valuation and portfolio management techniques.
  • The Level II study program emphasizes asset
    valuation and includes applications of the tools
    and inputs (including economics, financial
    statement analysis, and quantitative methods) in
    asset valuation.
  • The Level III study program emphasizes portfolio
    management and includes strategies for applying
    the tools, inputs, and asset valuation models in
    managing equity, fixed income, and derivative
    investments for individuals and institutions.

30
  • All three exams are administered on paper, on a
    single day the Level I exam is administered
    twice a year (usually the first weekend of June
    and December). The Level II and III exams are
    administered once a year, usually the first
    weekend of June. Each exam consists of two
    three-hour sessions. Both Level I and Level II
    are entirely multiple choice, while Level III
    consists of a session of short-answer questions
    and a session that is multiple choice. On the
    multiple-choice sections, there is no penalty for
    wrong answers.

31
  • Candidates who have taken the exam receive a
    score report that is intended to be fairly
    unspecific there is no overall score for the
    test, only a Pass/Fail result. For each category
    of questions, each test-taker is given a broad
    range within which his or her performance falls
    below 50, between 50 and 70, and above 70.
    There is no pre-set passing grade for the exams.
    The threshold for passing is 70 of the average
    of the top 10 of all scores. The wide variation
    in pass rates from year to year may partially
    stem from this calculation.

32
The CFA curriculum
  • The curriculum for the CFA program includes
  • Ethics and Professional Standards
  • Quantitative Methods (such as the time value of
    money, and statistical inference)
  • Economics
  • Financial Statement Analysis
  • Corporate Finance
  • Analysis of Investments (stocks, bonds,
    derivatives, venture capital, real estate, etc.)
  • Portfolio Management and Analysis (asset
    allocation, portfolio risk, performance
    measurement, etc.)

33
  • Analysis of Equity Investments
  • - Organization and Functioning of  Securities
    Markets- Security-Market Indexes and
    Benchmarks- Equity Risk Definition and
    Measurement- Fundamental Analysis - Special
    Applications of Fundamental Analysis- Technical
    Analysis

34
  • Financial Statement Analysis
  • - Financial Reporting System - Principal
    Financial Statements- Earnings Quality and
    Nonrecurring Items - Analysis of Inventories -
    Analysis of Long-Lived Assets- Analysis of
    Income Taxes- Analysis of Financing Liabilities
    - Analysis of Leases - Analysis of
    Off-Balance-Sheet Activities- Analysis of
    Pensions, Stock Compensation, and Other
    Employee Benefits - Analysis of Inter-Corporate
    Investments- Analysis of Business Combinations
    Analysis of Multinational Operations- Ratio
    and Financial Analysis

35
  • Corporate Finance
  • - Fundamental Issues- Capital Investment
    Decisions - Business and Financial Risk-
    Long-Term Financial Policy- Mergers and
    Acquisitions- Valuation Implications of
    Corporate Finance

36
  • Analysis of Fixed-Income Investments
  • - Fixed-Income Securities- Risks Associated
    with Investing in Bonds- Global Bond Sectors and
    Instruments- Yield Spreads- Introduction to the
    Valuation of Fixed-Income Securities- Yield
    Measures, Spot Rates, and Forward Rates-
    Measurement of Interest Rate Risk- The Term
    Structure and Volatility of Interest Rates-
    Valuing Bonds with Embedded Options-
    Mortgage-Backed Securities- Asset-Backed
    Securities- Valuing Mortgage-Backed and
    Asset-Backed Securities- Assessing Trading
    Strategies- Principles of Credit Analysis

37
  • Economics
  • - Market Forces of Supply and Demand-
    Elasticity- The Firm and Industry Organization-
    Supply and Demand for Productive Resources-
    Measuring National Income- Economic Fluctuations
    and Unemployment- The Monetary System-
    Inflation Causes and Consequences-
    International Trade- International Finance- The
    Macroeconomics of an Open Economy- Aggregate
    Demand and Aggregate Supply- Sources of Economic
    Growth- Government Regulation- Natural Resource
    Markets- Relationship of Economic Activity to
    the Investment Process

38
  • Derivatives
  • - Derivative Markets and Instruments- Forward
    Markets and Instruments- Futures Markets-
    Options Markets- Swaps Markets

39
  • Portfolio Management
  • - Capital Market Theory- Management of
    Individual Investor Portfolios- Management of
    Institutional Investor Portfolios- Pension Plan
    and Employee Benefit Funds- Endowment Funds and
    Foundations- Insurance Companies- Other
    Corporate Investors- Capital Market
    Expectations- Asset Allocation- Portfolio
    Construction and Revision- Equity Portfolio
    Management Strategies- Fixed-Income Portfolio
    Management Strategies - Real Estate and
    Alternative Investments in - Portfolio
    Management- Risk Management - Performance
    Measurement- Presentation of Performance Results

40
  • Analysis of Alternative Investments
  • - Real Estate - Investment Companies- Venture
    Capital - Hedge Funds - Closely-Held Companies
    - Distressed Securities/Bankruptcies- Commodity
    Markets and Commodity Derivatives

41
  • Ethical and Professional Standards
  • - Professional Standards of Practice- Topical
    Issues

42
Fee Schedule
  •   To enter the CFA Program, you must pay
  •  
  • An initial, one-time only registration fee
  • An enrollment fee for your first exam (Level I)
  •  
  • Fees for New Candidates
  • Payment deadlines
  • December 2007 15 Mar 07 15 Aug 07 17
    Sep 07
  • Registration Fee(one-time) US390
    US390 US465        
  • Exam Fee Level I(enrollment) US370
    US455 US690        
  • Total Cost to Enterthe CFA Program US760
    US845 US1155   

43
Association of Certified International Investment
Analysts
  • http//web.aciia.org/

44
  • Certified International Investment Analyst (CIIA)
    is a designation offered by the Association of
    Certified International Investment Analysts
    (ACIIA) to professional financial analysts
    candidates may be financial analysts, portfolio
    managers and / or investment advisors.
  • To be awarded the CIIA, candidates must pass two
    "Common Knowledge" Exams and a third
    National/Regional Exam (examining knowledge of
    specific markets), and have 3 years relevant
    experience. The exams are taken twice per year
    and are written at a postgraduate level.

45
  • The exams are implemented by 27 national
    Associations of Financial Analysts, or
    Federations of Financial Analysts Associations.
    Federations of Analysts Associations that are
    members of ACIIA, are inter alia the Asia-pacific
    Securities Analysts Federation (ASAF) European
    Federation of Financial Analysts Societies
    (EFFAS) and Brazil / Latin America Associação
    Brasileira dos Analistas do Mercado de Capitais
    (ABAMEC).

46
Curriculum
  • Equity valuation and analysis
  • - Equity Markets and Structures- Understanding
    the Industry Life Cycle- Analyzing the Industry
    Life Cycle- Valuation Model of Common Stock
    Exercises

47
  • Financial accounting and financial statement
    analysis
  • - Financial Reporting Environment- Framework
    for the Preparation and Presentation of
    Financial Statements- Statement of Cash Flows-
    Generally Accepted Accounting Principles Income
    Recognition- Generally Accepted Accounting
    Principles Assets, Liabilities and
    Shareholders Equity- Business Combinations-
    Foreign Currency Transactions- Financial
    Reporting and Financial Statement Analysis-
    Analytical Tools for Gaining Financial Statements
    Insights- Analytical Tools for Assessing
    Profitability and Risk Exercises

48
  • Corporate finance
  • - Fundamentals of Corporate Finance- Long-Term
    Finance Decision- Short-Term Finance Decision-
    Capital Structure and Dividend Policy- Mergers
    and Acquisitions- International Corporate
    Finance Exercises

49
  • Fixed income valuation and analysis
  • - Fundamentals- Time Value of Money- Bonds
    with Warrants- Convertible Bonds- Callable
    Bonds- Floating Rate Notes- Mortgage-Backed
    Securities- Fixed Income Portfolio Management
    Strategies Exercises

50
  • Economics
  • - Macroeconomics the Basics- Macroeconomic
    Dynamics- Open-Economy Macroeconomics the
    Balance of Payments and the Exchange - Rate -
    Monetary Policy Exercises

51
  • Derivative valuation and analysis
  • - Financial Markets and Instruments- Futures
    Valuation and Analysis- Option Valuation and
    Analysis- Asset-Based Securities Exercises

52
  • Portfolio management
  • - Modern Portfolio Theory- Investment Policy-
    Asset Allocation- Practical Portfolio
    Management- Performance Measurement- Management
    of Investment Institutions Exercises

53
  • National Exam
  • - Regulation - Ethics - Financial statements
    analysis - National Market structures and
    instruments

54
  • The Common Knowledge Exams are divided into two
    levels - the Foundation and Final Level. Examined
    are essential skills and knowledge required for
    professionals working in investment markets
    common in all countries.
  • Foundation Level
  • Exam Format multiple choice, calculation,
    discursive and short essay questions
  • Exam 1 3.10hrs Equity valuation and
    analysis

  • Financial accounting and statement analysis

  • Corporate Finance
  • Exam 2 2.40hrs Fixed income valuation
    and analysis
  • Economics
  • Exam 3 3.10hrs Derivative valuation
    and analysis

  • Portfolio management

55
  • Graduates who already have relevant
    qualifications may be exempt from the Foundation
    Level exams. Contact your local national/regional
    society for further details.
  • Final Level
  • Exam Format full and mini-case study questions
    and in-depth essay. Exam 1 3hrs Corporate
    finance
  • Economics
  • Financial accounting and statement analysis
  • Equity valuation and analysis
  • Exam 2 3hrs Fixed income valuation and analysis
  • Derivative valuation and analysis
  • Portfolio management

56
  • National/Regional ExamExam 1 3hrs Regulation
  • Ethics
  • Financial statements analysis
  • Market structures and instruments

57
  • Multilingual Exams
  • The Common Knowledge Exams can be conducted in
    Chinese, English, French, German, Italian,
    Japanese, Korean, Polish, Portuguese, Russian and
    Spanish.

58
American Academy of Financial Management
  • http//www.financialanalyst.org

59
  • The AAFM was founded in 1996, via a merger
    between the American Academy of Financial
    Management Analysts (AAFMA) and the Founders
    Advisory Committee of the Original Tax and Estate
    Planning Law Review. The AAFM is a professional
    association governed by a Board of Standards and
    a membership code of ethics and standards of
    practice. The AAFM operates in most countries as
    a society or non-profit association, with the
    members of the local or regional chapter making
    up the owners of the society. At all times the
    AAFM and its members are accountable to the
    community and to the board of standards.

60
  • The American Academy of Financial Management
    maintains more than 20 designations in the
    finance arena, with highly specialized role-based
    post-nominal awards. Members must either have
    come through one of the AAFM Accredited
    University Finance programs (such as Universities
    within AACSB - The Association to Advance
    Collegiate Schools of Business, ACBSP The
    Association of Collegiate Business Schools and
    Programs, etc), through an Executive Training
    Program, or in some rare cases through
    grandfathering by way of board/peer review.

61
  • AAFM is best recognized for its designations
    being in alliance with the AACSB International
    Accreditation Agency, the ACBSP Accreditation
    Agency, and listed and disclosed with various
    authorities such as Investor Education,
    Department of Labor, or National Association of
    Securities Dealers (NASD). AAFM Designations are
    available as executive certification courses for
    accredited degree holders in North and South
    America as well as Asia, India, and the Middle
    East.

62
  • Chartered Wealth Manager
  • The CWM is only available for wealth managers
    with an accredited masters degree, law degree,
    CPA, PhD or specialized executive training.
  • Chartered Asset Manager
  • The CAM is only available for asset managers
    with an accredited masters degree, law degree,
    MBA, CPA, PhD or specialized executive training.
  • Chartered Portfolio Manager
  • The CPM is only available for portfolio managers
    with an accredited masters degree, MBA, law
    degree, CPA, PhD or specialized executive
    training.

63
  • Master Financial Professional
  • The MFP is only available for financial planning
    managers with an AACSB or ACBSP accredited
    degree, ABA (American Bar Association) law
    degree, MBA, CPA, PhD or specialized executive
    training.
  • The AAFM has mutual legal recognition agreements
    with over 560 accredited and registered business
    schools to convey this credential to registered
    graduates of these top institutions.

64
  • Certified Market Analyst
  • The Certified Market Analyst or Chartered Market
    Analyst credential is only available for
    financial analysts and market analysts with an
    earned accredited masters degree, law degree,
    MBA, CPA, PhD or specialized AAFM executive
    training. The CMA has a focus on technical and
    fundamental analysis. Requirements are very high
    which include graduate education, ethics,
    continuing education, and vast experience with
    research, publications and investments.
  • Chartered Trust and Estate Planner
  • The CTEP is only available for estates and trust
    managers with an accredited degree, law degree,
    MBA, CPA, PhD or specialized executive training.
    Trust and estates experience and knowledge is
    required.

65
  • Registered Financial Specialist
  • The RFS is only available for financial planning
    managers with an accredited degree, MBA, law
    degree, CPA, PhD or specialized executive
    training. Criteria for this award includes
    ethics, continuing education, testing, education,
    and degree.

66
  • The AAFM has always required a college degree to
    be a candidate for certification. AAFM members
    are mainly from AACSB or ACBSP government
    recognized business schools. Thus, a college
    graduate would have already successfully
    completed 30 or more college level courses and
    exams along with ethics and professionalism
    courses to earn a degree to then be eligible for
    professional certification.

67
The Association of Corporate Treasurers (UK)
  • http//www.treasurers.org

68
  • The Association of Corporate Treasurers (ACT) is
    the international body for finance professionals
    working in treasury, risk and corporate finance.
    Through the ACT we come together as
    practitioners, technical experts and educators in
    a range of disciplines that underpin the
    financial security and prosperity of an
    organisation.
  • The ACT defines and promotes best practice in
    treasury and makes representations to government,
    regulators and standard setters.

69
  • Treasury is an integral element of the financial
    management of a business and as the environment
    in which companies operate evolves, the role of
    corporate treasury also changes.
  • The ACT is the only UK based professional body to
    offer specialist qualifications in treasury, risk
    and corporate finance. The membership
    qualifications, recognised as the global
    benchmark for treasury education, ensure that the
    ACT represents a highly qualified community of
    professionals.

70
The ACT Qualifications
  • Professional membership of the ACT may be
    obtained at two levels
  • Associateship
  • Membership
  • The Associateship qualification is set at
    professional entry level and gives a thorough
    overview of the fundamentals of treasury
    management. These concepts are developed further
    in the Membership examinations.

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  • The ACT Membership qualifications
  • AMCT Diploma in Treasury, Risk and Corporate
    Finance
  • MCT Advanced Diploma in Treasury, Risk and
    Corporate Finance, and the Certificate
    qualifications.

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AMCT Syllabus
  • There are two levels of papers in the AMCT
    syllabus Foundation Papers, which are core to
    the understanding of treasury and accountancy
    principles and Associate Papers, which provide
    the building blocks for the modern treasurer,
    examining and analysing the principles of
    corporate treasury.
  • An AMCT students study is made up of seven
    papers, four Foundation Papers and three chosen
    Associate Papers.

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  • Foundation Papers
  • Financial Management Accounting
  • Economics Statistical Analysis
  • Corporate Taxation
  • Business Law

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  • Associate Papers
  • Liquidity Management
  • Risk Management
  • Corporate Finance Funding
  • Corporate Finance Funding FastTrack
  • International Cash Management (Certificate)
  • Financial Mathematics and Modelling (Certificate)
  • Risk Management for Pensions (Certificate)

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  • Certificates
  • Certificate papers may be taken independently of
    the AMCT qualification and are recognised as
    qualifications in their own right. There are
    currently three Certificate papers
  • International Cash Management (CertICM)
  • Financial Mathematics and Modelling (CertFMM)
  • Risk Management for Pensions (CertRMP)

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  • The Association of Corporate Treasurers'
    Certificate in Financial Mathematics and
    Modelling (CertFMM) is designed to cover three
    critical areas of financial risk mathematics
    money market calculations, options and portfolio
    management.
  • International Cash Management explores the
    instruments, infrastructure and techniques of
    managing cash from the basics of payments and
    collections to foreign exchange swaps and
    outrights. It explains the links with working
    capital management together with the effects of
    legal, tax, technology and regulatory issues on
    cash management and banking relationships.

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  • By completing this paper you will
  • Be able to demonstrate a detailed understanding
    of international cash management from both a
    corporate and banking perspective.
  • Understand the wider context in which cash
    management fits within corporate treasury and
    international banking.
  • Understand global money transmission techniques
    and the details of major clearing systems.
  • Be able to add real value when organising and
    negotiating international cash management
    arrangements.
  • Be equipped with a practical toolkit for
    practical international cash management,
    including the use of instruments and strategies
    for optimising cash management efficiency.

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  • The Association of Corporate Treasurers'
    Certificate in Financial Mathematics and
    Modelling (CertFMM) is designed to cover three
    critical areas of financial risk mathematics
    money market calculations, options and portfolio
    management.
  • Financial Mathematics Modelling provides the
    tools to calculate, understand and interpret
    interest rate and currency risk from a
    mathematical viewpoint and analyses how these can
    be applied to practical situations. Techniques
    such as duration, convexity and portfolio
    analysis, including the trade-off between risk
    and return are discussed. The course explores
    option theory and the powerful ideas behind
    option pricing. It provides an insight into Value
    at Risk measures and its potential value and
    limitations as a useful risk measure. This
    Certificate is highly practical and will be
    taught using Excel.

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  • By completing this paper you will
  • Be able to calculate prices and yields for a
    variety of financial instruments.
  • Be able to explain and analyse interest rate
    sensitivity.
  • Be able to demonstrate how derivatives are used
    in financial risk management
  • Be able to price interest rate and currency
    derivatives.
  • Understand the concepts behind option pricing
    theory.
  • Be able to explain how portfolios can be measured
    in terms of risk and the limitations of those
    measures.
  • Be able to describe Value at Risk and how it is
    used.

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  • The Association of Corporate Treasurers'
    Certificate Paper in Risk Management for Pensions
    (CertRMP) is designed to enable you to
    understand, analyse and manage the risks
    associated with company pension funds.
  • CertRMP equips finance professionals with a
    fundamental understanding of the legislative and
    regulatory framework surrounding pensions,
    including the role of trustees, risk management
    implications and associated governance issues. By
    illustrating how analysts and shareholders view
    the risk profile of a company on the basis of the
    existence of a pension fund, it provides the
    skills to manage and understand this risk. The
    Certificate explores the impact of the pension
    fund on the cost of capital, enabling the finance
    professional to manage the financial assets of
    the business and address funding requirements.

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  • On completion of this paper you will be able to
  • Understand key aspects of the pensions framework
    and provision in the UK and compare these with
    other key jurisdictions
  • Compare and contrast the management of various
    types of company pension
  • Explain the roles and responsibilities of key
    persons associated with the management of a
    pension scheme
  • Understand and describe the financial risks
    associated with pension funds for both Fund and
    Company
  • Identify and assess your companys key pension
    risk exposures and strategies to manage them
  • Discuss the constraints/inhibitors to actions or
    decisions sought for the purposes of risk
    management

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  • Recommended study time 100-120 hours
  • Examination time 3 hours
  • The pass mark for each paper is normally 50

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  • The Training Center for Actuaries and
  • Financial Analysts (Ukraine)
  • www.mechmat.univ.kiev.ua/probability/Actuarial_Ce
    nter/

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  • The Training Center for Actuaries and Financial
    Analysts started its activity on the base of Kyiv
    National Taras Shevchenko University in 2006.
  • The Training Center was organized within the
    framework of EU Tempus Project IB-JEP-25054 under
    auspices of consortium of EU Universities, State
    Commission for Regulation of the Financial
    Services Markets of Ukraine and Society of
    Actuaries of Ukraine. The strategic goal of
    Training Center is assistance in development of
    actuarial profession in Ukraine through
    implementation the system of actuarial training
    on the base of advanced teaching methods. The
    employees of insurance companies, pension funds,
    banks, and governmental agencies as well as
    postgraduate and graduate students can attend
    these courses and at this center and prepare
    themselves for qualifying exams for Ukrainian
    actuaries have.

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  • Educational programs of Training Center are
    adapted to the BritishActuarial examination
    system and correspond to EU standards of
    actuarial training. Very fruitful contacts are
    established with Institute of Actuaries and
    Faculty of Actuaries in United Kingdom. An
    Examination Center for British actuarial exams
    was created on the base of the Training Center at
    Kyiv National Taras Shevchenko University. The
    first group of Ukrainian trainees passed exams in
    September 2006.

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  • Highly qualified staff of professors and
    lecturers from the Department of Probability
    Theory and Mathematical Statistics of Kyiv
    University delivers the courses in the Core
    Technical (CT) subjects according British
    actuarial training system
  • CT1 Financial Mathematics
  • CT2 Finance and Financial Reporting
  • CT3 Probability and Mathematical Statistics
  • CT4 Models
  • CT5 Contingencies
  • CT6 Statistical Methods
  • ?T7 Economics
  • CT8 Financial Economics.

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  • Training Center has a good library of actuarial
    literature, lecture halls and computer equipment.
    All trainees are provided by necessary teaching
    materials and have possibility to use library of
    actuarial literature, which has newest books on
    actuarial, financial mathematics, stochastic and
    statistics. The organization of training process
    is flexible. Lecture and practical studies are
    delivered in specially equipped computer classes
    at Kyiv University. These studies are combined
    with elements of distance education. The
    realistic timetable for the delivery of courses,
    which is appropriate for the needs of trainees
    from Kyiv and regional-based insurance companies
    are created.
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