SYSTEMS OF FINANCIAL SYSTEMS OF FINANCIAL ANALYSTS TRAINING ANALYSTS TRAINING

ContentsContents

Certificate in Finance and InvestmentCertificate in Finance and Investment of the Faculty of of the Faculty of Actuaries and Institute of Actuaries (UK)Actuaries and Institute of Actuaries (UK)

Chartered Financial Analyst (CFA)Chartered Financial Analyst (CFA) of the Chartered of the Chartered Financial Analyst Institute (USA)Financial Analyst Institute (USA)

Certified International Investment Analyst (CIIA)Certified International Investment Analyst (CIIA) Association of Certified International Investment Association of Certified International Investment AnalystsAnalysts

The Association of Corporate Treasurers (UK)The Association of Corporate Treasurers (UK) The Training Center for Actuaries and Financial Analysts (UkThe Training Center for Actuaries and Financial Analysts (Uk

raine)raine)

JobJob

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

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

Financial analysts in investment banking departments of Financial analysts in investment banking departments of securities or banking firms often work in teams, analyzing securities or banking firms often work in teams, analyzing the future prospects of companies that want to sell shares the future prospects of companies that want to sell shares to the public for the first time. They also ensure that the to the public for the first time. They also ensure that the forms and written materials necessary for compliance with forms and written materials necessary for compliance with Securities and Exchange Commission regulations are Securities and Exchange Commission regulations are accurate and complete. They may make presentations to accurate and complete. They may make presentations to prospective investors about the merits of investing in the prospective investors about the merits of investing in the new company. Financial analysts also work in mergers and new company. Financial analysts also work in mergers and acquisitions departments, preparing analyses on the costs acquisitions departments, preparing analyses on the costs and benefits of a proposed merger or takeover. There are and benefits of a proposed merger or takeover. There are buy-side analysts and sell-side analysts.buy-side analysts and sell-side analysts.

Some financial analysts, called Some financial analysts, called ratings analystsratings analysts (who are (who are often employees of ratings agencies), evaluate the ability often employees of ratings agencies), evaluate the ability of companies or governments that issue bonds to repay of companies or governments that issue bonds to repay their debt. On the basis of their evaluation, a management their debt. On the basis of their evaluation, a management team assigns a rating to a company's or government's team assigns a rating to a company's or government's bonds. Other financial analysts perform budget, cost, and bonds. Other financial analysts perform budget, cost, and credit analysis as part of their responsibilities.credit analysis as part of their responsibilities.

Financial analysisFinancial analysisFinancial analysisFinancial analysis refers to an assessment of the refers to an assessment of the viabilityviability, ,

stabilitystability and and profitabilityprofitability of a business, sub-business or of a business, sub-business or project.project.

It is performed by professionals who prepare reports using ratios It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements that make use of information taken from financial statements and other reports. These reports are usually presented to top and other reports. These reports are usually presented to top management as one of their basis in making business management as one of their basis in making business decisions. Based on these reports, management may:decisions. Based on these reports, management may:

Continue or discontinue its main operation or part of its Continue or discontinue its main operation or part of its business;business;

Make or purchase certain materials in the manufacture of its Make or purchase certain materials in the manufacture of its product;product;

Acquire or rent/lease certain machineries and equipments in Acquire or rent/lease certain machineries and equipments in the production of its goods;the production of its goods;

Issue stocks or negotiate for a bank loan to increase its Issue stocks or negotiate for a bank loan to increase its working capital.working capital.

other decisions that allow management to make an informed other decisions that allow management to make an informed selection on various alternatives in the conduct of its business. selection on various alternatives in the conduct of its business.

GoalsGoals

Financial analysts often assess the firm's:Financial analysts often assess the firm's:

1. 1. ProfitabilityProfitability - its ability to earn income and - its ability to earn income and sustain growth in both short-term and long-term. sustain growth in both short-term and long-term. A company's degree of profitability is usually A company's degree of profitability is usually based on the income statement, which reports on based on the income statement, which reports on the company's results of operations;the company's results of operations;

2. 2. SolvencySolvency - its ability to pay its obligation to - its ability to pay its obligation to debtors and other third parties in the long-term;debtors and other third parties in the long-term;

3. 3. LiquidityLiquidity - its ability to maintain positive cash - its ability to maintain positive cash flow, while satisfying immediate obligations;flow, while satisfying immediate obligations;Both 2 and 3 are based on the company's balance Both 2 and 3 are based on the company's balance sheet, which indicates the financial condition of a sheet, which indicates the financial condition of a business as of a given point in time.business as of a given point in time.

4. 4. StabilityStability - the firm's ability to remain in business - the firm's ability to remain in business in the long run, without having to sustain in the long run, without having to sustain significant losses in the conduct of its business. significant losses in the conduct of its business. Assessing a company's stability requires the use Assessing a company's stability requires the use of both the income statement and the balance of both the income statement and the balance sheet, as well as other financial and non-financial sheet, as well as other financial and non-financial indicators.indicators.

EducationEducation

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

Faculty of Actuaries and Faculty of Actuaries and Institute of ActuariesInstitute of Actuaries

(UK)(UK)

http://www.actuaries.org.ukhttp://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 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

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.

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 - assetsCA12 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

CA3 CommunicationsCA3 Communications has two has two questions, each testing a different type of questions, each testing a different type of written communication. The paper is of written communication. The paper is of three hours duration.three hours duration.

Specialist Technical stageSpecialist Technical stageStudents 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.

Specialist Applications stageSpecialist Applications stage

There are seven Specialist Applications subjects. There are seven Specialist Applications subjects. Students required to pass one subject chosen from:Students required to pass one subject chosen from:

SA0 Research Dissertation Specialist ApplicationsSA0 Research Dissertation Specialist Applications SA1 Health and Care Specialist ApplicationsSA1 Health and Care Specialist Applications SA2 Life Insurance Specialist ApplicationsSA2 Life Insurance Specialist Applications SA3 General Insurance Specialist ApplicationsSA3 General Insurance Specialist Applications SA4 Pensions and other Benefits Specialist SA4 Pensions and other Benefits Specialist

ApplicationsApplications SA5 Finance Specialist ApplicationsSA5 Finance Specialist Applications SA6 Investment Specialist ApplicationsSA6 Investment Specialist Applications

Each of SA1–SA6 are tested by an examination paper of Each of SA1–SA6 are tested by an examination paper of three hours duration. three hours duration.

UK Practice ModulesUK Practice Modules

A UK Practice Module has to be taken by students A UK Practice Module has to be taken by students working in the UK. This is tested by multiple choice working in the UK. This is tested by multiple choice examinations each of one and a half hours duration. examinations each of one and a half hours duration.

The first part is common to all practice areas and tests The first part is common to all practice areas and tests the generic principles of UK Financial Services. the generic principles of UK Financial Services.

The second part tests UK business practice, regulation, The second part tests UK business practice, regulation, legislation and professional guidance notes in legislation and professional guidance notes in specific areas. 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 Chartered Financial Analyst Institute (USA)Institute (USA)

http://www.cfainstitute.org/http://www.cfainstitute.org/

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

The CFA designation is a qualification for people The CFA designation is a qualification for people engaged in the financial and investment sector.engaged in the financial and investment sector.

From 1963 (when the CFA designation was first used) From 1963 (when the CFA designation was first used) to 2006, approximately 69,600 people from 126 to 2006, approximately 69,600 people from 126 different countries have been awarded the right to different countries have been awarded the right to use the CFA designation. As of 2006, more than use the CFA designation. As of 2006, more than 116,000 more people are currently enrolled to take 116,000 more people are currently enrolled to take one of the examinations.one of the examinations.

The CFA program began in the United States, but has The CFA program began in the United States, but has become increasingly international with many become increasingly international with many people becoming charterholders across Europe, people becoming charterholders across Europe, Asia and Australasia. By 2003 fewer than half the Asia and Australasia. By 2003 fewer than half the candidates in the CFA program were based in the candidates in the CFA program were based in the US and Canada, with most of the other candidates US and Canada, with most of the other candidates based in Asia or Europe. India and China have based in Asia or Europe. India and China have shown some of the highest growth from 2005-2006 shown some of the highest growth from 2005-2006 with increases of 25% and 53% respectively in the with increases of 25% and 53% respectively in the total number of charterholders.total number of charterholders.

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

The CFA examThe CFA exam

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

The Level I study program emphasizes tools and The Level I study program emphasizes tools and inputs and includes an introduction to asset inputs and includes an introduction to asset valuation and portfolio management techniques. valuation and portfolio management techniques.

The Level II study program emphasizes asset The Level II study program emphasizes asset valuation and includes applications of the tools valuation and includes applications of the tools and inputs (including economics, financial and inputs (including economics, financial statement analysis, and quantitative methods) in statement analysis, and quantitative methods) in asset valuation. asset valuation.

The Level III study program emphasizes portfolio The Level III study program emphasizes portfolio management and includes strategies for applying management and includes strategies for applying the tools, inputs, and asset valuation models in the tools, inputs, and asset valuation models in managing equity, fixed income, and derivative managing equity, fixed income, and derivative investments for individuals and institutions. investments for individuals and institutions.

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

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

The CFA curriculumThe CFA curriculum

The curriculum for the CFA program includes:The curriculum for the CFA program includes:

Ethics and Professional Standards Ethics and Professional Standards Quantitative Methods (such as the time value of Quantitative Methods (such as the time value of

money, and statistical inference) money, and statistical inference) Economics Economics Financial Statement Analysis Financial Statement Analysis Corporate Finance Corporate Finance Analysis of Investments (stocks, bonds, Analysis of Investments (stocks, bonds,

derivatives, venture capital, real estate, etc.) derivatives, venture capital, real estate, etc.) Portfolio Management and Analysis (asset Portfolio Management and Analysis (asset

allocation, portfolio risk, performance allocation, portfolio risk, performance measurement, etc.) measurement, etc.)

Analysis of Equity InvestmentsAnalysis of Equity Investments

- Organization and Functioning of  Securities - Organization and Functioning of  Securities MarketsMarkets- Security-Market Indexes and Benchmarks- Security-Market Indexes and Benchmarks- Equity Risk Definition and Measurement- Equity Risk Definition and Measurement- Fundamental Analysis - Fundamental Analysis - Special Applications of Fundamental Analysis- Special Applications of Fundamental Analysis- Technical Analysis - Technical Analysis

Financial Statement AnalysisFinancial Statement Analysis

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

Corporate FinanceCorporate Finance

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

Analysis of Fixed-Income InvestmentsAnalysis of Fixed-Income Investments

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

EconomicsEconomics

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

Derivatives Derivatives

- Derivative Markets and Instruments- Derivative Markets and Instruments- Forward Markets and Instruments- Forward Markets and Instruments- Futures Markets- Futures Markets- Options Markets- Options Markets- Swaps Markets - Swaps Markets

Portfolio ManagementPortfolio Management

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

Analysis of Alternative InvestmentsAnalysis of Alternative Investments

- Real Estate - Real Estate - Investment Companies- Investment Companies- Venture Capital - Venture Capital - Hedge Funds - Hedge Funds - Closely-Held Companies - Closely-Held Companies - Distressed Securities/Bankruptcies- Distressed Securities/Bankruptcies- Commodity Markets and Commodity Derivatives - Commodity Markets and Commodity Derivatives

Ethical and Professional StandardsEthical and Professional Standards

- Professional Standards of Practice- Professional Standards of Practice- Topical Issues - Topical Issues

Fee ScheduleFee Schedule

    To enter the CFA Program, you must pay:To enter the CFA Program, you must pay:     An initial, An initial, one-time onlyone-time only registration fee  registration fee An enrollment fee for your first exam (Level I) An enrollment fee for your first exam (Level I)     Fees for New CandidatesFees for New Candidates

Payment deadlines: Payment deadlines: December 2007:December 2007: 15 Mar 07 15 Aug 07 17 Sep 07 15 Mar 07 15 Aug 07 17 Sep 07

Registration FeeRegistration Fee(one-time)(one-time) US$390 US$390 US$465       US$390 US$390 US$465          

Exam Fee: Level IExam Fee: Level I(enrollment)(enrollment) US$370 US$455 US$690         US$370 US$455 US$690        

Total Cost to EnterTotal Cost to Enterthe CFA Program:the CFA Program: US$760 US$845 US$1155    US$760 US$845 US$1155   

Association of Certified Association of Certified International Investment International Investment

AnalystsAnalysts

http://web.aciia.org/http://web.aciia.org/

Certified International Investment AnalystCertified International Investment Analyst ((CIIACIIA) is a designation offered by the Association ) is a designation offered by the Association of Certified International Investment Analysts of Certified International Investment Analysts (ACIIA) to professional financial analysts; (ACIIA) to professional financial analysts; candidates may be financial analysts, portfolio candidates may be financial analysts, portfolio managers and / or investment advisors.managers and / or investment advisors.

To be awarded the CIIA, candidates must pass two To be awarded the CIIA, candidates must pass two "Common Knowledge" Exams and a third "Common Knowledge" Exams and a third National/Regional Exam (examining knowledge of National/Regional Exam (examining knowledge of specific markets), and have 3 years relevant specific markets), and have 3 years relevant experience. The exams are taken twice per year experience. The exams are taken twice per year and are written at a postgraduate level.and are written at a postgraduate level.

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

CurriculumCurriculum

Equity valuation and analysisEquity valuation and analysis

- Equity Markets and Structures- Equity Markets and Structures- Understanding the Industry Life Cycle- Understanding the Industry Life Cycle- Analyzing the Industry Life Cycle- Analyzing the Industry Life Cycle- Valuation Model of Common Stock- Valuation Model of Common Stock ExercisesExercises

Financial accounting and financial statement Financial accounting and financial statement analysisanalysis

- Financial Reporting Environment- Financial Reporting Environment- Framework for the Preparation and Presentation of - Framework for the Preparation and Presentation of Financial Statements Financial Statements- Statement of Cash Flows- Statement of Cash Flows- Generally Accepted Accounting Principles: Income –- Generally Accepted Accounting Principles: Income – Recognition Recognition- Generally Accepted Accounting Principles: Assets, - Generally Accepted Accounting Principles: Assets, Liabilities and Shareholders’ Equity Liabilities and Shareholders’ Equity- Business Combinations- Business Combinations- Foreign Currency Transactions- Foreign Currency Transactions- Financial Reporting and Financial Statement - Financial Reporting and Financial Statement AnalysisAnalysis- Analytical Tools for Gaining Financial Statements - Analytical Tools for Gaining Financial Statements Insights Insights- Analytical Tools for Assessing Profitability and Risk- Analytical Tools for Assessing Profitability and Risk ExercisesExercises

Corporate financeCorporate finance

- Fundamentals of Corporate Finance- Fundamentals of Corporate Finance- Long-Term Finance Decision- Long-Term Finance Decision- Short-Term Finance Decision- Short-Term Finance Decision- Capital Structure and Dividend Policy- Capital Structure and Dividend Policy- Mergers and Acquisitions- Mergers and Acquisitions- International Corporate Finance- International Corporate Finance ExercisesExercises

Fixed income valuation and analysisFixed income valuation and analysis

- Fundamentals- Fundamentals- Time Value of Money- Time Value of Money- Bonds with Warrants- Bonds with Warrants- Convertible Bonds- Convertible Bonds- Callable Bonds- Callable Bonds- Floating Rate Notes- Floating Rate Notes- Mortgage-Backed Securities- Mortgage-Backed Securities- Fixed Income Portfolio Management Strategies- Fixed Income Portfolio Management Strategies ExercisesExercises

EconomicsEconomics

- Macroeconomics: the Basics- Macroeconomics: the Basics- Macroeconomic Dynamics- Macroeconomic Dynamics- Open-Economy Macroeconomics: the Balance of - Open-Economy Macroeconomics: the Balance of Payments and the Exchange - Rate Payments and the Exchange - Rate - Monetary Policy - Monetary Policy ExercisesExercises

Derivative valuation and analysisDerivative valuation and analysis

- Financial Markets and Instruments- Financial Markets and Instruments- Futures Valuation and Analysis- Futures Valuation and Analysis- Option Valuation and Analysis- Option Valuation and Analysis- Asset-Based Securities- Asset-Based Securities ExercisesExercises

Portfolio managementPortfolio management

- Modern Portfolio Theory- Modern Portfolio Theory- Investment Policy- Investment Policy- Asset Allocation- Asset Allocation- Practical Portfolio Management- Practical Portfolio Management- Performance Measurement- Performance Measurement- Management of Investment Institutions- Management of Investment Institutions ExercisesExercises

National ExamNational Exam

- Regulation - Regulation - Ethics - Ethics - Financial statements analysis - Financial statements analysis - National Market structures and instruments - National Market structures and instruments

The Common Knowledge Exams The Common Knowledge Exams are divided into two levels - the are divided into two levels - the Foundation and Final Level. Examined are essential skills and Foundation and Final Level. Examined are essential skills and knowledge required for professionals working in investment knowledge required for professionals working in investment markets common in all countries.markets common in all countries.

Foundation LevelFoundation Level

Exam Format: multiple choice, calculation, discursive and short Exam Format: multiple choice, calculation, discursive and short essay questionsessay questions

Exam 1 3.10hrs Equity valuation and analysis Exam 1 3.10hrs Equity valuation and analysis Financial accounting and statement Financial accounting and statement

analysis analysis Corporate Finance Corporate Finance

Exam 2 2.40hrs Fixed income valuation and analysis Exam 2 2.40hrs Fixed income valuation and analysis Economics Economics

Exam 3 3.10hrs Derivative valuation and analysisExam 3 3.10hrs Derivative valuation and analysis Portfolio management Portfolio management

Graduates who already have relevant qualifications may be Graduates who already have relevant qualifications may be exempt from the Foundation Level exams. Contact your exempt from the Foundation Level exams. Contact your local national/regional society for further details. local national/regional society for further details.

Final LevelFinal Level

Exam Format: full and mini-case study questions and in-Exam Format: full and mini-case study questions and in-depth essay. depth essay.

Exam 1Exam 1 3hrs 3hrs Corporate financeCorporate financeEconomics Economics Financial accounting and statement Financial accounting and statement

analysis analysis Equity valuation and analysis Equity valuation and analysis

Exam 2Exam 2 3hrs3hrs Fixed income valuation and analysis Fixed income valuation and analysis Derivative valuation and analysis Derivative valuation and analysis Portfolio management Portfolio management

National/Regional ExamNational/Regional Exam

Exam 1Exam 1 3hrs 3hrs Regulation Regulation Ethics Ethics Financial statements analysis Financial statements analysis Market structures and Market structures and

instruments instruments

Multilingual ExamsMultilingual Exams

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

American Academy of Financial American Academy of Financial ManagementManagement

http://www.financialanalyst.orghttp://www.financialanalyst.org

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

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

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

Chartered Wealth ManagerChartered Wealth ManagerThe CWM is only available for wealth managers The CWM is only available for wealth managers with an accredited masters degree, law degree, with an accredited masters degree, law degree, CPA, PhD or specialized executive training.CPA, PhD or specialized executive training.

Chartered Asset ManagerChartered Asset ManagerThe CAM is only available for asset managers The CAM is only available for asset managers with an accredited masters degree, law degree, with an accredited masters degree, law degree, MBA, CPA, PhD or specialized executive training.MBA, CPA, PhD or specialized executive training.

Chartered Portfolio ManagerChartered Portfolio ManagerThe CPM is only available for portfolio managers The CPM is only available for portfolio managers with an accredited masters degree, MBA, law with an accredited masters degree, MBA, law degree, CPA, PhD or specialized executive degree, CPA, PhD or specialized executive training.training.

Master Financial ProfessionalMaster Financial ProfessionalThe MFP is only available for financial planning The MFP is only available for financial planning managers with an AACSB or ACBSP accredited managers with an AACSB or ACBSP accredited degree, ABA (American Bar Association) law degree, ABA (American Bar Association) law degree, MBA, CPA, PhD or specialized executive degree, MBA, CPA, PhD or specialized executive training.training.

The AAFM has mutual legal recognition agreements The AAFM has mutual legal recognition agreements with over 560 accredited and registered business with over 560 accredited and registered business schools to convey this credential to registered schools to convey this credential to registered graduates of these top institutions.graduates of these top institutions.

Certified Market AnalystCertified Market AnalystThe Certified Market Analyst or Chartered Market The Certified Market Analyst or Chartered Market Analyst credential is only available for financial Analyst credential is only available for financial analysts and market analysts with an earned & analysts and market analysts with an earned & accredited masters degree, law degree, MBA, CPA, accredited masters degree, law degree, MBA, CPA, PhD or specialized AAFM executive training. The PhD or specialized AAFM executive training. The CMA has a focus on technical and fundamental CMA has a focus on technical and fundamental analysis. Requirements are very high which include: analysis. Requirements are very high which include: graduate education, ethics, continuing education, graduate education, ethics, continuing education, and vast experience with research, publications and and vast experience with research, publications and investments.investments.

Chartered Trust and Estate PlannerChartered Trust and Estate PlannerThe CTEP is only available for estates and trust The CTEP is only available for estates and trust managers with an accredited degree, law degree, managers with an accredited degree, law degree, MBA, CPA, PhD or specialized executive training. MBA, CPA, PhD or specialized executive training. Trust and estates experience and knowledge is Trust and estates experience and knowledge is required.required.

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

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

The Association of The Association of Corporate Treasurers Corporate Treasurers

(UK) (UK)

http://www.treasurers.orghttp://www.treasurers.org

The Association of Corporate Treasurers (ACT) is the The Association of Corporate Treasurers (ACT) is the international body for finance professionals international body for finance professionals working in treasury, risk and corporate finance. working in treasury, risk and corporate finance. Through the ACT we come together as Through the ACT we come together as practitioners, technical experts and educators in practitioners, technical experts and educators in a range of disciplines that underpin the financial a range of disciplines that underpin the financial security and prosperity of an organisation.security and prosperity of an organisation.

The ACT defines and promotes best practice in The ACT defines and promotes best practice in treasury and makes representations to treasury and makes representations to government, regulators government, regulators and standard setters.and standard setters.

Treasury is an integral element of the financial Treasury is an integral element of the financial management of a business and as the management of a business and as the environment in which companies operate evolves, environment in which companies operate evolves, the role of corporate treasury also changes.the role of corporate treasury also changes.

The ACT is the only UK based professional body to The ACT is the only UK based professional body to offer specialist qualifications in treasury, risk and offer specialist qualifications in treasury, risk and corporate finance. The membership qualifications, corporate finance. The membership qualifications, recognised as the global benchmark for treasury recognised as the global benchmark for treasury education, ensure that the ACT represents a education, ensure that the ACT represents a highly qualified community of professionals.highly qualified community of professionals.

The ACT QualificationsThe ACT Qualifications

Professional membership of the ACT may be Professional membership of the ACT may be obtained at two levels:obtained at two levels:

Associateship Associateship Membership Membership

The Associateship qualification is set at The Associateship qualification is set at professional entry level and gives a thorough professional entry level and gives a thorough overview of the fundamentals of treasury overview of the fundamentals of treasury management. These concepts are developed management. These concepts are developed further in the Membership examinations.further in the Membership examinations.

The ACT The ACT Membership Membership qualifications:qualifications:

AMCT – Diploma in Treasury, Risk and AMCT – Diploma in Treasury, Risk and Corporate FinanceCorporate Finance

MCT – Advanced Diploma in Treasury, Risk MCT – Advanced Diploma in Treasury, Risk and Corporate Finance, and the Certificate and Corporate Finance, and the Certificate qualifications. qualifications.

AMCT Syllabus AMCT Syllabus

There are two levels of papers in the AMCT syllabus – There are two levels of papers in the AMCT syllabus – Foundation Papers, which are core to the Foundation Papers, which are core to the understanding of treasury and accountancy understanding of treasury and accountancy principles; and Associate Papers, which provide the principles; and Associate Papers, which provide the building blocks for the modern treasurer, building blocks for the modern treasurer, examining and analysing the principles of examining and analysing the principles of corporate treasury.corporate treasury.

An AMCT student’s study is made up of seven An AMCT student’s study is made up of seven papers, four Foundation Papers and three chosen papers, four Foundation Papers and three chosen Associate Papers. Associate Papers.

Foundation PapersFoundation Papers::

Financial & Management AccountingFinancial & Management Accounting

Economics & Statistical AnalysisEconomics & Statistical Analysis

Corporate TaxationCorporate Taxation

Business LawBusiness Law

Associate PapersAssociate Papers

Liquidity ManagementLiquidity Management Risk ManagementRisk Management Corporate Finance & FundingCorporate Finance & Funding Corporate Finance & Funding FastTrackCorporate Finance & Funding FastTrack

International Cash Management (Certificate)International Cash Management (Certificate) Financial Mathematics and Modelling Financial Mathematics and Modelling

(Certificate)(Certificate) Risk Management for Pensions (Certificate) Risk Management for Pensions (Certificate)

CertificatesCertificates

Certificate papers may be taken independently of the Certificate papers may be taken independently of the AMCT qualification and are recognised as AMCT qualification and are recognised as qualifications in their own right. There are currently qualifications in their own right. There are currently three Certificate papers:three Certificate papers:

International Cash Management (CertICM)International Cash Management (CertICM)

Financial Mathematics and Modelling (CertFMM)Financial Mathematics and Modelling (CertFMM)

Risk Management for Pensions (CertRMP)Risk Management for Pensions (CertRMP)

The Association of Corporate Treasurers' The Association of Corporate Treasurers' Certificate Certificate in Financial Mathematics and Modellingin Financial Mathematics and Modelling (CertFMM) (CertFMM) is designed to cover three critical areas of is designed to cover three critical areas of financial risk mathematics: money market financial risk mathematics: money market calculations, options and portfolio management.calculations, options and portfolio management.

International Cash Management explores the International Cash Management explores the instruments, infrastructure and techniques of instruments, infrastructure and techniques of managing cash from the basics of payments and managing cash from the basics of payments and collections to foreign exchange swaps and collections to foreign exchange swaps and outrights. It explains the links with working capital outrights. It explains the links with working capital management together with the effects of legal, management together with the effects of legal, tax, technology and regulatory issues on cash tax, technology and regulatory issues on cash management and banking relationships.management and banking relationships.

By completing this paper you will:By completing this paper you will:

Be able to demonstrate a detailed understanding Be able to demonstrate a detailed understanding of international cash management from both a of international cash management from both a corporate and banking perspective.corporate and banking perspective.

Understand the wider context in which cash Understand the wider context in which cash management fits within corporate treasury and management fits within corporate treasury and international banking.international banking.

Understand global money transmission Understand global money transmission techniques and the details of major clearing techniques and the details of major clearing systems.systems.

Be able to add real value when organising and Be able to add real value when organising and negotiating international cash management negotiating international cash management arrangements.arrangements.

Be equipped with a practical toolkit for practical Be equipped with a practical toolkit for practical international cash management, including the international cash management, including the use of instruments and strategies for optimising use of instruments and strategies for optimising cash management efficiency.cash management efficiency.

The Association of Corporate Treasurers' The Association of Corporate Treasurers' Certificate in Certificate in Financial Mathematics and ModellingFinancial Mathematics and Modelling (CertFMM) is (CertFMM) is designed to cover three critical areas of financial risk designed to cover three critical areas of financial risk mathematics: money market calculations, options mathematics: money market calculations, options and portfolio management.and portfolio management.

Financial Mathematics & Modelling provides the tools Financial Mathematics & Modelling provides the tools to calculate, understand and interpret interest rate to calculate, understand and interpret interest rate and currency risk from a mathematical viewpoint and currency risk from a mathematical viewpoint and analyses how these can be applied to practical and analyses how these can be applied to practical situations. Techniques such as duration, convexity situations. Techniques such as duration, convexity and portfolio analysis, including the trade-off and portfolio analysis, including the trade-off between risk and return are discussed. The course between risk and return are discussed. The course explores option theory and the powerful ideas explores option theory and the powerful ideas behind option pricing. It provides an insight into behind option pricing. It provides an insight into Value at Risk measures and its potential value and Value at Risk measures and its potential value and limitations as a useful risk measure. This Certificate limitations as a useful risk measure. This Certificate is highly practical and will be taught using Excel.is highly practical and will be taught using Excel.

By completing this paper you will:By completing this paper you will:

Be able to calculate prices and yields for a variety of Be able to calculate prices and yields for a variety of financial instruments.financial instruments.

Be able to explain and analyse interest rate sensitivity.Be able to explain and analyse interest rate sensitivity. Be able to demonstrate how derivatives are used in Be able to demonstrate how derivatives are used in

financial risk managementfinancial risk management Be able to price interest rate and currency derivatives.Be able to price interest rate and currency derivatives. Understand the concepts behind option pricing theory.Understand the concepts behind option pricing theory. Be able to explain how portfolios can be measured in Be able to explain how portfolios can be measured in

terms of risk and the limitations of those measures.terms of risk and the limitations of those measures. Be able to describe Value at Risk and how it is used.Be able to describe Value at Risk and how it is used.

The Association of Corporate Treasurers' The Association of Corporate Treasurers' Certificate Certificate Paper in Risk Management for PensionsPaper in Risk Management for Pensions (CertRMP) (CertRMP) is designed to enable you to understand, analyse is designed to enable you to understand, analyse and manage the risks associated with company and manage the risks associated with company pension funds.pension funds.

CertRMP equips finance professionals with a CertRMP equips finance professionals with a fundamental understanding of the legislative and fundamental understanding of the legislative and regulatory framework surrounding pensions, regulatory framework surrounding pensions, including the role of trustees, risk management including the role of trustees, risk management implications and associated governance issues. By implications and associated governance issues. By illustrating how analysts and shareholders view the illustrating how analysts and shareholders view the risk profile of a company on the basis of the risk profile of a company on the basis of the existence of a pension fund, it provides the skills to existence of a pension fund, it provides the skills to manage and understand this risk. The Certificate manage and understand this risk. The Certificate explores the impact of the pension fund on the explores the impact of the pension fund on the cost of capital, enabling the finance professional to cost of capital, enabling the finance professional to manage the financial assets of the business and manage the financial assets of the business and address funding requirements.address funding requirements.

On completion of this paper you will be able to:On completion of this paper you will be able to:

Understand key aspects of the pensions framework Understand key aspects of the pensions framework and provision in the UK and compare these with other and provision in the UK and compare these with other key jurisdictionskey jurisdictions

Compare and contrast the management of various Compare and contrast the management of various types of company pensiontypes of company pension

Explain the roles and responsibilities of key persons Explain the roles and responsibilities of key persons associated with the management of a pension schemeassociated with the management of a pension scheme

Understand and describe the financial risks associated Understand and describe the financial risks associated with pension funds for both Fund and Companywith pension funds for both Fund and Company

Identify and assess your company’s key pension risk Identify and assess your company’s key pension risk exposures and strategies to manage themexposures and strategies to manage them

Discuss the constraints/inhibitors to actions or Discuss the constraints/inhibitors to actions or decisions sought for the purposes of risk managementdecisions sought for the purposes of risk management

Recommended study time – 100-120 hoursRecommended study time – 100-120 hours

Examination time – 3 hoursExamination time – 3 hours

The pass mark for each paper is normally 50% The pass mark for each paper is normally 50%

The Training Center for Actuaries The Training Center for Actuaries andand

Financial Analysts (Ukraine)Financial Analysts (Ukraine)

www.mechmat.univ.kiev.ua/probability/Actuarial_www.mechmat.univ.kiev.ua/probability/Actuarial_

Center/Center/

The Training Center for Actuaries and Financial The Training Center for Actuaries and Financial Analysts startedAnalysts started its activity on the base of Kyiv its activity on the base of Kyiv National Taras ShevchenkoNational Taras Shevchenko University in 2006.University in 2006.

The Training Center was organized within the The Training Center was organized within the framework of EUframework of EU Tempus Project IB-JEP-25054 Tempus Project IB-JEP-25054 under auspices of consortium of EUunder auspices of consortium of EU Universities, Universities, State Commission for Regulation of the FinancialState Commission for Regulation of the Financial Services Markets of Ukraine and Society of Services Markets of Ukraine and Society of Actuaries of Ukraine.Actuaries of Ukraine. The strategic goal of Training The strategic goal of Training Center is assistance in developmentCenter is assistance in development of actuarial of actuarial profession in Ukraine through implementation theprofession in Ukraine through implementation the system of actuarial training on the base of system of actuarial training on the base of advanced teachingadvanced teaching methods. The employees of methods. The employees of insurance companies, pension funds,insurance companies, pension funds, banks, and banks, and governmental agencies as well as postgraduate andgovernmental agencies as well as postgraduate and graduate students can attend these courses and at graduate students can attend these courses and at this center andthis center and prepare themselves for qualifying prepare themselves for qualifying exams for Ukrainian actuariesexams for Ukrainian actuaries have.have.

Educational programs of Training Center are Educational programs of Training Center are adapted to the BritishActuarial examination adapted to the BritishActuarial examination system and correspond to EU standards ofsystem and correspond to EU standards of actuarial training. Very fruitful contacts are actuarial training. Very fruitful contacts are established withestablished with Institute of Actuaries and Faculty Institute of Actuaries and Faculty of Actuaries in Unitedof Actuaries in United Kingdom. An Examination Kingdom. An Examination Center for British actuarial exams wasCenter for British actuarial exams was created on created on the base of the Training Center at Kyiv National the base of the Training Center at Kyiv National TarasTaras Shevchenko University. The first group of Shevchenko University. The first group of Ukrainian traineesUkrainian trainees passed exams in September passed exams in September 2006.2006.

Highly qualified staff of professors and lecturers from theHighly qualified staff of professors and lecturers from the Department of Probability Theory and Mathematical Department of Probability Theory and Mathematical Statistics ofStatistics of Kyiv University delivers the courses in the Core Kyiv University delivers the courses in the Core TechnicalTechnical (CT) subjects according British actuarial training (CT) subjects according British actuarial training system:system:

CT1 Financial Mathematics; CT1 Financial Mathematics; CT2 Finance and Financial Reporting;CT2 Finance and Financial Reporting; CT3 Probability and Mathematical Statistics;CT3 Probability and Mathematical Statistics; CT4 Models;CT4 Models; CT5 Contingencies; CT5 Contingencies; CT6 Statistical Methods; CT6 Statistical Methods; ССT7 T7 EconomicsEconomics;; CT8 Financial Economics.CT8 Financial Economics.

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