SYSTEMS OF FINANCIAL
ANALYSTS TRAINING
Contents
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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)
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.
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.
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.
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:
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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.
Goals
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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;
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.
Education
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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).
Faculty of Actuaries and Institute
of Actuaries
(UK)
http://www.actuaries.org.uk
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:
Core Technical Stage
In the Core Technical stage there are nine subjects:
CT1
 CT2
 CT3
 CT4
 CT5
 CT6
 CT7
 CT8
 CT9
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Financial Mathematics
Finance and Financial Reporting
Probability and Mathematical Statistics
Models
Contingencies
Statistical Methods
Economics
Financial Economics
Business Awareness Module
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 postcourse 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
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The module consists of internet-based study, attendance at
a two day course and internet-based assessment.
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:
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CA1
Core Applications Concepts
CA11 one paper - assets
CA12 one paper - liabilities and asset-liability
management
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
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CA3 Communications has two questions,
each testing a different type of written
communication. The paper is of three hours
duration.
Specialist Technical stage
Students will in future be required to pass two subjects at
the Specialist Technical stage. There are seven Specialist
Technical subjects:
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ST0
ST1
ST2
ST3
ST4
ST5
ST6
Alternative Specialist Technical
Health and Care Specialist Technical
Life Insurance Specialist Technical
General Insurance Specialist Technical
Pensions and other Benefits Specialist Technical
Finance and Investment Specialist Technical A
Finance and Investment Specialist Technical B
Each of ST1 - ST6 will be tested by one examination paper
of three hours in length.
Specialist Applications stage
There are seven Specialist Applications subjects. Students
required to pass one subject chosen from:
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SA0
SA1
SA2
SA3
SA4
SA5
SA6
Research Dissertation Specialist Applications
Health and Care Specialist Applications
Life Insurance Specialist Applications
General Insurance Specialist Applications
Pensions and other Benefits Specialist Applications
Finance Specialist Applications
Investment Specialist Applications
Each of SA1–SA6 are tested by an examination paper of
three hours duration.
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.
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.
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.
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.
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 .
Chartered Financial Analyst
Institute (USA)
http://www.cfainstitute.org/
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.
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.
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.
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.
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The Level I study program emphasizes tools and inputs
and includes an introduction to asset valuation and
portfolio management techniques.
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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.
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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.
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 threehour 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.
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.
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.)
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Analysis of Equity Investments
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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
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Financial Statement Analysis
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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
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Corporate Finance
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Fundamental Issues
Capital Investment Decisions
Business and Financial Risk
Long-Term Financial Policy
Mergers and Acquisitions
Valuation Implications of Corporate Finance
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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
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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
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Derivatives
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Derivative Markets and Instruments
Forward Markets and Instruments
Futures Markets
Options Markets
Swaps Markets
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Portfolio Management
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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
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Analysis of Alternative Investments
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Real Estate
Investment Companies
Venture Capital
Hedge Funds
Closely-Held Companies
Distressed Securities/Bankruptcies
Commodity Markets and Commodity Derivatives
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Ethical and Professional Standards
- Professional Standards of Practice
- Topical Issues
Fee Schedule
To enter the CFA Program, you must pay:
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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
Registration Fee
(one-time)
US$390
Exam Fee: Level I
(enrollment)
US$370
Total Cost to Enter
the CFA Program: US$760
15 Aug 07
US$390
US$455
US$845
17 Sep 07
US$465
US$690
US$1155
Association of Certified International
Investment Analysts
http://web.aciia.org/
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.
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).
Curriculum
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Equity valuation and analysis
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Equity Markets and Structures
Understanding the Industry Life Cycle
Analyzing the Industry Life Cycle
Valuation Model of Common Stock
Exercises
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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
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Corporate finance
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Fundamentals of Corporate Finance
Long-Term Finance Decision
Short-Term Finance Decision
Capital Structure and Dividend Policy
Mergers and Acquisitions
International Corporate Finance
Exercises
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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
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Economics
- Macroeconomics: the Basics
- Macroeconomic Dynamics
- Open-Economy Macroeconomics: the Balance of
Payments and the Exchange - Rate
- Monetary Policy
Exercises
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Derivative valuation and analysis
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Financial Markets and Instruments
Futures Valuation and Analysis
Option Valuation and Analysis
Asset-Based Securities
Exercises
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Portfolio management
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Modern Portfolio Theory
Investment Policy
Asset Allocation
Practical Portfolio Management
Performance Measurement
Management of Investment Institutions
Exercises
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National Exam
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Regulation
Ethics
Financial statements analysis
National Market structures and instruments
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.
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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
Graduates who already have relevant qualifications may be exempt
from the Foundation Level exams. Contact your local
national/regional society for further details.
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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
National/Regional Exam
Exam 1 3hrs Regulation
Ethics
Financial statements analysis
Market structures and
instruments
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Multilingual Exams
The Common Knowledge Exams can be conducted in
Chinese, English, French, German, Italian, Japanese,
Korean, Polish, Portuguese, Russian and Spanish.
American Academy of Financial
Management
http://www.financialanalyst.org
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.
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.
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.

Chartered Wealth Manager
The CWM is only available for wealth managers with an
accredited masters degree, law degree, CPA, PhD or
specialized executive training.
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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.
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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.

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.
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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.

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.

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.
The Association of
Corporate Treasurers
(UK)
http://www.treasurers.org
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.
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.
The ACT Qualifications
Professional membership of the ACT may be obtained at
two levels:
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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.
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.
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 student’s study is made up of seven papers, four
Foundation Papers and three chosen Associate Papers.
Foundation Papers:

Financial & Management Accounting

Economics & Statistical Analysis

Corporate Taxation

Business Law
Associate Papers
Liquidity Management
 Risk Management
 Corporate Finance & Funding
 Corporate Finance & Funding FastTrack
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International Cash Management (Certificate)
 Financial Mathematics and Modelling
(Certificate)
 Risk Management for Pensions (Certificate)

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)
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.
By completing this paper you will:
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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.
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.
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.
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 company’s 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
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Examination time – 3 hours
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The pass mark for each paper is normally 50%
The Training Center for Actuaries and
Financial Analysts (Ukraine)
www.mechmat.univ.kiev.ua/probability/Actuarial_Center/
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.
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.
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:
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CT1
CT2
CT3
CT4
CT5
CT6
СT7
CT8
Financial Mathematics;
Finance and Financial Reporting;
Probability and Mathematical Statistics;
Models;
Contingencies;
Statistical Methods;
Economics;
Financial Economics.
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.