Outline of ACIIA® and CIIA® - Certified International Investment Analyst- February 2005.

Outline of ACIIA® and CIIA® - Certified International Investment Analyst-　　　　　　　　　　　 February 2005

ACIIA® Association of Certified International Investment Analysts 2

Challenges of Globalisation Globalisation introduces: -interdependencies

-complexity-volatility

Implications for Finance Industry: -knowledge based

-adding value-reducing risk

Investment Analysts: -markets/ customers-global knowledge

-local expertise


Global Skills

Local Knowledge

Culture Language


Knowledge

Ethics

Language & Culture

- ACIIA principles of ethical conduct now open to the public for comments - compliance with national legislation - compliance with ICIA code of ethics

- CKB ® (Common Knowledge Base)

- specific local content

- local legislation and regulation

- It’s a must ! - customer oriented- ensuring labour efficiency


What is the ACIIA® ?

• Non-profit organization • Established in June 2000, based in Switzerland• Awards an internationally recognised qualification

for financial market experts: the CIIA®


ACIIA®’s Role

• To establish /organise and supervise the professional examinations of the CIIA®

• To award the CIIA® qualification

• To offer a truly global qualification for investment professionals

• To support the independence of national societies


ACIIA®’s Objectives

• To create a forum for the interchange of ideas and information in the finance and investment field

• To assist a world-wide network of capital market experts

• To promote the interests of the investment community

• To promote ethical behaviour in the industry


ACIIA®’s Background

Globalization of investment markets and the rapidly changing face of the global economy

caused the world’s key financial institutions to integrate their operations

demands an internationally recognised, high level qualification.


ACIIA®’s Background

CIIA®s have

• the skills

• the flexibility

• the ethical behavior to work in any international finance center.


ACIIA®’s Philosophy

• A world-wide democratic co-operation of national societies as competent partners.

• Respects sovereignty and responsibility of national societies

• Respects individual cultures and languages



• Recognises that many countries already have excellent national qualification programs

• Draws on this existing pool of expertise



• Extend, not replace, the existing national programs, with a global qualification that is recognised world-wide.

• CIIA® holders remain independent as members of their national society.

• Ethics are monitored by the national society.


ACIIA® Organizational Structure

General Meeting

IEC- International Examination Committee®

CIE-Center for International Examinations

Council

＊ PMC – Promotion and Marketing Committee

＊ Task Force for ACIIA Code of Ethics


Council Members

1. Mr. Kiyoto Hagiwara, Chairman (SAAJ Japan)

2. Mr. Jean-Francois Balmary, Deputy Chairman (SFAF France)

3. Mr. Gary Cheung (ASAF Asia / HKSI Hong Kong)

4. Dr. Rene Willemsen (EFFAS Europe)

5. Mr. Ronaldo Nogueira (APIMEC Brazil)

6. Dr. Lin Yixiang (SAC/SAAC China)

7. Mr. Fritz H Rau (DVFA Germany)

8. Mr. Sanjay Ramchandani (CPMR/ICFAI India)

9. Mr. Giampaolo Trasi (AIAF Italy)

10.Mr. Gonzalo Milans del Bosch (IEAF Spain)

11.Dr. Jean-Claude Dufournet (SFAA Switzerland)


Membership Categories

• Regular Members - Federation Members - Contracting Members - Funding Members• Associate Members• Supporting Members



• Federation Members (2+1) - ASAF - EFFAS - APIMEC• Contracting Members (13) Austria, Belgium, France, Germany, Hong Kong, India, Italy, Japan, Luxembourg, Netherlands, Russia, Spain, Switzerland



• Funding Members (7) China, France, Germany, Italy, Japan, Spain, Switzerland • Associate Members (8) Hungary, Iran, Korea, Morocco, Poland, Sweden, Thailand, Ukraine• Supporting Members (0)


Membership Rights / Obligations

Fed. M. Cont. M. Fund. M. Asso. M. Supp. M.

-Voting Rights ○ 　　　 ○　　　 ○　　　　 × 　 ×(General Meetings)

-To attend General Meetings ○ 　　　 ○　　　 ○　　　　△　 △-To be Council Members ○　　　 ○　 ○　　　 × ×

-To have CIIA candidates × 　　　 ○　　　 × 　　　　○　　 ○

(National programs have to be accredited by IEC)

-To pay entrance fee/ ○ 　　　○　　　 ○　　　　○　　 △

annual fee to ACIIA

-To have to commit × 　　　 ○　　　 × 　　　　 × 　　 × number of exam candidates

-To extend a loan to ACIIA × 　　　 × 　　　 ○　　　 × 　　 ×


Membership Fees to ACIIA

• Entrance fee and annual membership fee are paid to the ACIIA by ACIIA Members.

• ACIIA Members will probably charge CIIA candidates (i) a registration fee, and (ii) an examination fee for one or two exam paper(s), taking into account annual membership fees payable to the ACIIA, management and operational costs, plus a certain margin profit.

• In any case, the level of fees for CIIA candidates will be up to each member society.


Entrance Fees to ACIIA• Federation Members CHF7,250• Contracting Members CHF7,250• Funding Members CHF7,250• Associate Members CHF1,160• Supporting Members Not admitted


Annual Membership Fees to ACIIA (1)

Refer to the ACIIA “Terms and Conditions of Fee Commitment.”

• Federation / Funding Members : CHF9,790 p.a.

• Contracting Members: (i) As long as the cumulative number of exam units is no more than 500, the annual fee will be (i)CHF 9,945 (CHF 195 x 51 exam papers if the committed number is the minimum ) or (ii) CHF195 x number of exam units for the year, whichever is larger.


Annual Membership Fees to ACIIA (2)

If the cumulative number of exam units is more than 500, the annual fees will be calculated, in principle, based upon the following: [P] x [rn] [P] : average price per unit This coverage price will be calculated in accordance with the “fee per unit” table [rn] : number of units (exam papers) for the nth payment of annual membership fees. *Refer to the ACIIA “Terms and Conditions of Fee Commitment.”


Total committed/actual number of units for five years

(Committed/actual number of exam papers for five years)

Fee per unit

The 1st level 0-500 CHF195

The 2nd level 501-1,000 CHF175

The 3rd level 1001-1,500 CHF150

The 4th level 1,501-3,000 CHF130

The 5th level 3,001-5,000 CHF110

The 6th level 5,001- CHF90

Annual Membership Fee Fee Per Unit Table

Number of exam papers Annual feeThe 1st year: 300 CHF 58,500 (= 195.0 x 300)The 2nd year: 500 CHF 93,750 (= 187.5 x 500)The 3rd year: 600 CHF 105,000 (= 175.0 x 600)* * Average price per unit: (195 x 500 + 175 x 500 + 150 x 400) ÷1,400 =175.00

Annual fee for the 3rd year: [P] x [rn] = 175.00 x 600 = 105,000


Annual Membership Fees to ACIIA

• Associate Members: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

CHF435 CHF870 CHF1,740 CHF3,480 CHF6,960 CHF9,790

• Supporting Members: CHF435

(A harbor will give Associate Members temporary

refuge, and once the storm passes they can return

to their original membership status.)


Global Reach

• 23 Member Societies to date

• some 30,000 investment professionals

• aiming at 3,000 - 5,000 graduates annually


Candidate Numbers

Since March 2002 more than 2,500 candidates have achieved the designation worldwide

Currently more than 3,300 CIIA® candidatesworld-wide


Strengths of CIIA® designation

• Participating societies are able to retain their independence

• The CIIA® is– practical and relevant– globally oriented

• Exams can be taken in a number of languages• The overall qualification also comprises a “local

specific” component


CIIA® Examination Structure

• The designation combines a topic-based and levels-based approach, with emphasis on Corporate Finance and Derivatives

• There are two levels of examinations covering all topic areas– Foundation level + National specific – Final level



Examination paper structure: • Common Exam hours No. of papers

– Final 6 2– Foundation 9 3

15 5

• National specific 3 118 6

nb: the national specific examination may, if necessary, be more than 3 hours



Topic areas • Equity Valuation and Analysis

• Fixed Income Valuation and Analysis

• Derivative Valuation and Analysis

• Economics

• Corporate Finance

• Financial Accounting and Financial Statement Analysis

• Portfolio Management


Structure of CIIA®

Topic combinations

• Final Level– Examination I (180min): Equity, Financial

Statement, Economics, Corporate Finance– Examination II (180min): Fixed Income,

Derivatives, Portfolio Management



• Foundation Level– Examination I (190min): Equity, Financial

Statements, Corporate Finance– Examination II (160min): Fixed Income,

Economics– Examination III (190 min): Derivatives,

Portfolio Management



• National Specific– Regulation, Ethics, Accounting, Market

Structures and Instruments


Routes to the CIIA® Qualification

• Route A:– Foundation + Final + National specific

• Route B: – Accredited programme + Final

• Route C (until September 09): – Experienced qualified candidate + Final

(Accredited member societies only)


Routes to the CIIA® Qualification

The IEC (International Examination Committee) evaluate national societies’ programs for accreditation by the ACIIA®

Note: Fifteen member society programmes have been accredited to date.

Societies are increasingly integrating their programmes more fully within the CIIA® scheme and adopting Route A.


International Examination Committee (IEC)

• Assures the high quality and academic credibility of the CIIA®

• is independent, objective, and dedicated to the CIIA® qualification

• consists of experts from four continents: – international experienced university

professors– expert practitioners with academic activities.


International Examination Committee (IEC)

• Is responsible for evaluating if qualification programs of national societies are equivalent to the foundation level of the CIIA®

• Is responsible for the preparation of the CIIA® examination papers

• Supervises the CIIA® examination


IEC Members

• Prof. Mike Theobald, Chairman, UK• Dr. Ronald Copley, USA• Prof. Darell Duffie, USA• Dr. Jean-Claude Dufournet, Switzerland• Prof. Takao Kobayashi, Japan• Prof. Otto Loistl, Germany• Prof. Juan A. Palacios, Spain• Prof. Miguel Angelo Arab, Brazil


How are the CIIA® examination papers prepared?

The CIIA® is a truly international examination: examination questions come from around the world.

• Questions are drafted by different national societies

• The IEC prepares a definitive version of the examination papers


How are the examinations corrected?

• The first correction is made by the national societies and marginal papers are identified.

• The marginal papers are then re-graded by the national societies. Remaining marginal papers are graded centrally within ACIIA® and the final grading is checked by the IEC.


Organisational Aspects

Each society is responsible for:

• the organisation of the CIIA® examination

• the preparation of its candidates

• the preparation of the educational material (manuals, handouts) for its candidates


CIIA® Candidate Preparation

National Societies are responsible for providing good training courses and materials for CIIA® candidates.

In Europe, manuals consistent with the CIIA® syllabus have been developed by the Swiss Centre and by a group of the German, French, Spanish and Belgian Societies. Integration of the materials into one set is under way.


Comparison CIIA® vs. CFA

Resume• The readings are by and large comparable.

• The CFA-syllabus lacks a national-specific topic section over and above the US-market. Legal requirements, accounting rules and investment regulation, the syllabus and the readings are all US-oriented.

• The CIIA® – program addresses both issues: the legal local/regional rules and regulations, and the US-regulations.


Resume CIIA®

• Advanced international, professional qualification for capital market experts

• International acceptance

• Global, regional and local education

• Eleven globally recognised languages

• Complements existing national qualification programs

• Respects individual cultures, languages and legal orders

• Assures independence of CIIA® holders and National Societies

• Ethical standards are controlled by the local member society

Outline of ACIIA® and CIIA® - Certified International Investment Analyst- February 2005.

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Transcript of Outline of ACIIA® and CIIA® - Certified International Investment Analyst- February 2005.