Levelling the Playing Field in
International Trade Finance
David Morrish
dmorrish@ifslearning.ac.uk
www.ifslearning.ac.uk
Levelling the Playing Field
Not too level…
…needs a bit of work!
Very Level!
International Trade Qualifications Survey 2014
As you will have seen from the selection of feedback to our 2014 survey
as you entered the room respondents are from all over the world. ifs
University College International Trade Finance Qualifications are
studied in over 80 countries
ALGERIA
ARGENTINA
AUSTRALIA
AZERBAIJAN
BAHRAIN
BANGLADESH
BELARUS
BELGIUM
BOTSWANA
BRAZIL
BULGARIA
CAMEROON
CANADA
CHINA
CROATIA
CYPRUS
CZECH REPUBLIC
DENMARK
ECUADOR
EGYPT
ESTONIA
FRANCE
GERMANY
GHANA
HONG KONG
HUNGARY
INDIA
INDONESIA
IRAQ
ITALY
IVORY COAST
JAPAN
© ifs University College 2013
JORDAN
KAZAKHSTAN
KENYA
KUWAIT
LATVIA
LEBANON
LIBYA
MALAWI
MALAYSIA
MALTA
MAURITANIA
MAURITIUS
MONGOLIA
MOROCCO
NETHERLANDS
NETHERLANDS ANTILLES
NEW ZEALAND
NIGERIA
OMAN
PAKISTAN
POLAND
PORTUGAL
QATAR
REPUBLIC OF IRELAND
ROMANIA
RUSSIA
SAUDI ARABIA
SENEGAL
SINGAPORE
SOUTH AFRICA
SOUTH KOREA
SPAIN
SRI LANKA
SUDAN
SWEDEN
SWITZERLAND
SYRIA
TAIWAN
THAILAND
TUNISIA
TURKEY
UAE
UGANDA
UK
UKRAINE
USA
VIETNAM
ZAMBIA
ZIMBABWE
Certificate in International Trade and Finance
CITF® - Introduction
First offered in 2009 the Certificate in International Trade and Finance
was developed as a qualification for those either new to trade finance
or wanting to develop their knowledge further.
 Typical profile of candidates:
 Relationship Managers with internationally active clients in their
portfolios
 Trade services operations personnel wish to broaden their knowledge
(90% of respondents from our 2014 survey work in Financial Institutions)
 Export sales personnel in large corporates
(10% of respondents from our 2014 survey work for exporters/importers or
for freight forwarders)
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - 2014 Survey results
CITF® has proved popular in the past with successful candidates giving
a very positive response to the 2014 Survey:
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66% stated it had helped them gain their current role
74% used their knowledge most days, if not everyday, in their day-to-day job
88% believed it had enhanced their career prospects
88% felt that their achieving CITF® was beneficial to their organisation
Despite these very positive responses however, our own research and
direct feedback from a number of sources suggested that the pace of
change in international trade was such that CITF® needed to be
refreshed
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - Development of new Syllabus
 Working Group convened in early 2013
 Input sought from a variety of sources
 New Chief Examiner appointed
 New Test Committee appointed
 Revised Syllabus agreed
 Revised Text Book commissioned
The ‘Guide to International Trade and Finance’
 ICC endorses CITF®
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - Development of new Syllabus
High level Objectives of the revised CITF® are for successful
candidates to be able to:
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advise clients appropriately on the basics of international trade and finance;
understand the processes involved in each type of international trade
product;
understand the risks involved in international trade and how to mitigate
them;
understand current banking practices and conventions applicable to
international trade;
understand the roles and responsibilities of all parties involved in
international trade transactions.
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - Content
The significance of international trade and the role of the
International Chamber of Commerce (ICC):
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Principles of international trade
Challenges of international trade
Role of the ICC
Regional and global initiatives
Risk mitigation
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - Content
The role and responsibilities of parties involved in international trade:
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Banks
Buyers
Sellers
Traders and intermediaries
Transport companies
Chambers of commerce
Customs
Insurance companies
Factoring companies
Forfaiting companies
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - Content
The relationships between the parties involved in international trade and the
trade finance environment and external impacts;
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ICC – international model contracts
International commercial terms (Incoterms®)
Exchange controls
Regulatory issues
Sanctions
Money laundering
Fraud
Role and practice of dispute settlement within international trade including:
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Dispute handling, arbitration and resolution
ICC arbitration
Documentary Instruments Dispute Resolution Expertise (DOCDEX)
Litigation
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - Content
Methods of settlement available and the rules that govern them:
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Open account
Collections and URC
Letters of credit and UCP
Introduction to ISBP
Guarantees and URDG
Standbys and ISP98
Bank Payment Obligations and URBPO
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - Content
Methods available for financing and servicing international trade:
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Short, medium and long-term finance
Supply chain finance
Export Credit Agencies
Credit and political risk mitigation
Forex risk and hedging
Forfaiting and URF
Islamic trade financing
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - Content
Purpose and key features of the different types of documents used in
international trade:
 Financial documents
 Bill of Exchange
 Promissory Note
 Commercial documents
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Invoices (commercial, customs, tax, consular, provisional, pro-forma)
Insurance document
Certificate of origin
Inspection certificate
Packing list
Weight list
Analysis, Health, Phytosanitary, Quantity, Quality,
Beneficiary Certificates
© ifs University College 2013
Certificate in International Trade and Finance
CITF® - Content
 Transport documents
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Multimodal or combined transport
Bill of lading
Non-negotiable sea waybill
Charter party bill of lading
Air transport
Road, rail or inland waterway
© ifs University College 2013
International Trade Finance Qualifications
Certificate in International Trade and Finance (CITF®)
 An introduction to all aspects of trade finance
 Registrations opened on 1st April for October exam
Certificate for Documentary Credit Specialists (CDCS®)
 A practical examination for documentary credit professionals
 Record number of candidates for the April examination
Certificate for Specialists in Demand Guarantees (CSDG)
 A new examination for guarantee and standby credit practitioners
 Number of candidates far exceeds expectations for June exam
All three qualifications have been developed in partnership with the ICC and each
carries the ICC endorsement.
Whether newly appointed or experienced in their specialist field, Trade Finance
professionals now have a suite of qualifications to develop their expertise and
enhance their career prospects.
© ifs University College 2013
Conclusion
 ifs University College in partnership with the ICC has developed and
enhanced three leading international trade finance qualifications
 In studying for these qualifications Trade Finance professionals may
develop their expertise and in many areas fill the gaps in their
knowledge so that they may have a more complete understanding
and appreciation of their subject
 Lack of knowledge and understanding is a barrier and can create
uneven tensions between the various parties engaged in international
trade
 Professional qualifications play their part in breaking down those
barriers and help level the playing field.
© ifs University College 2013
Levelling the Playing Field
Produces Winners!
© ifs University College 2013
Thank you
David Morrish
dmorrish@ifslearning.ac.uk
www.ifslearning.ac.uk