The Institute of Banking and Finance€¦ · The Institute of Banking and Finance In the meantime,...

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The Institute of Banking and Finance

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2 AboutUs

3 MissionStatement

4 Chairman’sStatement

6 CouncilMembers

9 CalendarofKeyEvents

HighlightsoftheYear

11 LaunchoftheFullSetofFinancialIndustryCompetencyStandards

14 LaunchofFinancialSectorWebsite“FinanceConnectSingapore”

15 FinancialTalentEducationandDevelopmentTaskForce

OrganisationalInitiativesandAffairs

17 RaisingtheBarforFinancialPractitioners

21 EnhancingtheJobReadinessofGraduates

21 OutreachtoTalentPools

22 ContinuingEducationandTraining

23 CapitalMarketsandFinancialAdvisoryServices(CMFAS)Examination

24 RegionalPartnershipandOutreach

25 MembershipandPartnership

27 OrganisationalImprovements-InformationTechnology

ReportoftheCouncilMembersandFinancialStatements

29 ReportoftheCouncilMembers

31 IndependentAuditors’ReporttotheMembersofTheInstituteofBankingandFinance

33 StatementofFundBalances,AssetsandLiabilities

34 StatementofIncomeandExpenditure

35 StatementofChangesinMembers’Funds

36 CashFlowStatement

37 NotestoAccounts

50 StatementofCouncilMembers

51 NoticeofAnnualGeneralMeeting

ProxyForm

contents

Annual Report 2006

2TheInstituteofBankingandFinance(IBF)wasestablishedon21stNovember1974asanon-profitprofessional institution.Whenitwassetupin1974,IBFservedacriticalfunctionasa centre dedicated to the training of the Singapore financialsectorworkforce.

Asfinancial services developedover the years, IBF expandedits role to include the administration of local and overseasexaminations. It also broadened its charter to include non-bank sectors in the financial industry. More than 180,000participantshavebenefitedfromtheover4,000coursesofferedbytheInstitutethroughtheyears.

In the year 2000, IBF conducted a strategic review of itsdirection and strategy. The review showed that the trainingactivitiesoftheInstituteoverlappedwiththetrainingactivitiesofotherinstitutionswithintheprivatesector.IBFconsequentlyrepositioned itself in 2001 to focus on a broader and morestrategicroleofenhancingthefinancialtraininginfrastructurein Singapore.The Institute gradually relinquished its role asa training provider, and established “f-NExT”, a FinancialNetwork for Excellence inTraining. Apart from serving as aplatform todevelop amore robust, forward-looking traininginfrastructure in financial services, “f-NExT” also promotesmoreactiveindustryinvolvementandcollaboration.IBFalsoestablishedastandard-settingcommitteeknownastheFinancialIndustryCompetencyStandardsCommitteein2003,withtheobjective of raising theprofessional standardof thefinancial

sector workforceinSingapore.

In its currentrole, the InstituteadministerspartoftheCapitalMarketsandFinancialAdvisoryServices(CMFAS)examination series on behalf of the Monetary Authority ofSingapore and facilitates the provision of the ContinuingEducationProgrammesforTradingRepresentatives(CEPTR)courses. The Institute is also the national accreditation andcertificationagencyforfinancialindustrycompetencyundertheFinancialIndustryCompetencyStandards(FICS)framework.

about us


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about us

Todeveloparesponsive,forward-lookingfinancialsectortraininginfrastructure that positions Singapore as a world-class financialcentreandfinancialtraininghub.

To promote continuous learning andtrainingamongfinancialinstitutions.

To achieve the highest standards offinancialworkforcecompetenceinlinewithworldclassstandards.

To establish the benchmark for theprovision of top quality financialtrainingandeducation.

To attract and develop a pool ofcredible,highqualityandinternationallyrecognisedfinancialtrainingproviders.

mission

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Annual Report 2006

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chairman’sstatement

MrHengSweeKeatChairmanofIBF|ManagingDirector,MonetaryAuthorityofSingapore

In 2006, IBF made steady headway in implementingthe Financial Industry Competency Standards (FICS).Thefull setof standardswasreleasedon12June,and inJuly, Standard Chartered Bank became the first foreignfull bank to achieve FICS accreditation, for its FinancialMarkets: Trading assessment programme. In November,UBSAGbecame thefirstfinancial institution to achieveFICS-accreditation for all job roles in a job family(Relationship Management: High Net Worth). UBS hassinceopeneditsWealthManagementCampus-AsiaPacific,avalidationofSingaporeasachoicelocationforfinancialsectorresearch,educationandtraining.Iwasdelightedtolearn that theavailabilityof theFICS frameworkassistedUBS in developing the full suite of programmes for its

wealthmanagementstaff,uptothehighestlevels.IBF has also intensified its efforts in facilitatingtalent attraction into the financial sector. A website,www.financeconnectsingapore.com, was launched tohighlight the vibrancy and dynamism of the Singaporefinancial sector,andtherichopportunities forcareerandpersonal advancement. At the same time, the website

showcases to an international audienceSingapore’s excellent work, live and playproposition.The website has attracted healthytraffic, and IBF will continue to enhance it

further.

IBF led a tri-partite task force, called theFinancial Talent Education and DevelopmentTaskForce,tolookintobetteralignmentofpre-employment training to the needs of financialsector employers. The Task Force broughttogether institutionsofhigher learning (IHLs)and financial institutions, and the discussionshave culminated in several important

recommendations toensure thatourgraduateswill be equipped with skills and attitudesthat would make them continue to be highlysoughtafterbyfinancialsectoremployers.IBFwill continue to engage IHLs and financialinstitutionsintheyearaheadtoseethroughtheadoptionoftheserecommendations.


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Inthemeantime,toaddresstheimmediateskillneedsoftheindustry,IBFhasworkedwithindustryplayersandfinancialtrainingproviderstodevelopintensiveFinancePreparatoryProgrammes(FPP)targetedatgraduatingstudents,tomakethemmorereadytotakeonrolesinhigh-growthareas.ThefirstFPP in riskmanagementwas launchedby theNUSRisk Management Institute in December 2006, and asecondFPP inglobaland investmentbankingoperationswillbeintroducedinJuly.

As several of these initiatives aremulti-year efforts, 2007willbefilledwithexcitingandimportantworkforIBF.ForFICS,5leadproviderswillbeappointedin2007todeliverthe full suite of FICS-accredited training and assessmentprogrammes. A publicity campaign will be launched toincrease awareness of FICS, and we can look forward towelcominga“pioneer”batchofFinancialIndustryCertifiedProfessionalsasrolemodelsforouraspiringyoungtalents.With this,wewouldbe further embedding andbuildingonthegroundworkforFICS,andwecanexpecttoseeasignificant rise in thenumberofcertifiedpractitioners inthenext2years.

A word of gratitude to the FICS SteeringCommittee,ablyledbyMsEuleenGoh,isthusnotmerelycustomary.Indeed,thecommitmentof the FICS Steering Committee, supportedby the FICS Working Groups, has beeninstrumentaltoourprogress,andIamdelightedthat they have agreed to renew their term foranother2yearstoprovidecontinuedleadershipforthenextstageoftheFICSjourney.

Iwouldalsoliketoextendmyappreciationtoourpartners,includingtheSingaporeWorkforceDevelopmentAgencyandmycolleaguesattheMonetaryAuthorityofSingapore,fortheirclosecollaborationwithIBF.Finally,Iwouldliketothankallourmembersforyoursupportfor,andcollaborationwith,IBFinthepastyear.IBFwasestablishedtoserveyou,andIlookforwardtoyouractiveparticipationinourinitiativesintheyearahead.

Annual Report 2006

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councilmembers

(from top, left)

Mr Heng Swee Keat

ChairmanofIBF

ManagingDirectorMonetaryAuthorityofSingapore

Mr Wee Ee Cheong

ViceChairmanofIBF

ChairmanofAssociationofBanksinSingapore

DeputyChairman&ChiefExecutiveOfficerUOBLimited

Mr Ong Chong Tee

DeputyManagingDirectorResearch,MonetaryPolicy&InvestmentsDevelopment&ExternalRelationsMonetaryAuthorityofSingapore

Mr Jackson Tai

ViceChairman&ChiefExecutiveOfficerDBSGroupHoldings&DBSBank

(from bottom, left)

Mr David Conner

Director&ChiefExecutiveOfficerOCBCBank

Mrs Catherine Mullaney Weir

HeadofASEAN,CitiMarkets&BankingCitiCountryOfficer,SingaporeCitibank,N.A.

Mr Loh Boon Chye

ChairmanofSingaporeForeignExchangeMarketCommittee

ManagingDirectorHeadofGlobalMarkets,AsiaDeutscheBank

Mr Derek Teo

PresidentofGeneralInsuranceAssociationofSingapore

ExecutiveVicePresidentAmericanHomeAssuranceCompany,Singapore


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(from top, left)

Mr Seck Wai Kwong

SeniorExecutiveVicePresidentSingaporeExchangeLimited

Ms Euleen Goh Yiu Kiang

ChairpersonFinancialIndustryCompetencyStandardsSteeringCommittee

ChairmanInternationalEnterpriseSingapore

Mr George Lee

ChairmanofSingaporeInvestmentBankingAssociation

ExecutiveVicePresidentGroupInvestmentBankingOCBCBank

Mr Lester Gray

ChairmanofInvestmentManagementAssociationofSingapore

ChiefExecutiveOfficerAsiaPacificSchroderInvestmentManagement(S)Ltd

(from bottom, left)

Dr Gary Willmott

DeputyChiefExecutiveSingaporeWorkforceDevelopmentAgency

Mr Christopher Ho

ChairmanofSingaporeReinsurers’Association

ChairmanandChiefExecutiveOfficerAXAREAsiaPacific

Ms Karine Kam

ExecutiveDirectorSingaporeCollegeofInsurance

Mr Lee Kah Chuen

DeputyDirectorHumanities&AestheticsBranchCurriculumPlanningandDevelopmentDivisionMinistryofEducation

Annual Report 2006

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(from top, left)

(2� March �990 – 2� March 2006)Mr Ang Swee Tian

PastPresidentSGX

(� April 200� – 9 April 2006)Ms Ho Peng

DirectorCurriculumPlanning&DevelopmentMinistryofEducation

(� October 200� – 6 October 2006) Mr Greg Seow

ExecutiveChairmanDBSAssetManagement

(�0 May 200� – � July 2006) Mr Low Kwok Mun

ChairmanSingaporeCollegeofInsurance

ExecutiveDirector,InsuranceSupervisionMonetaryAuthorityofSingapore

Council Members who have stepped down during the year


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calendar of key events

IBFholdsits31stAnnualGeneralMeeting

IBFreleasesthecompletesetofFinancialIndustryCompetencyStandards

IBF convenes meeting of the FinancialTalent Education AndDevelopmentTaskForce

IBFparticipatesinthe11thBiennialAsian&PacificAssociationofBankingInstitutesConference

IBFlaunchestheFinanceConnectSingapore(FCS)website

IBF participates in the ASEAN Banking Council PermanentCommitteeonEducationMeeting

IBF announces the launch of the first Finance PreparatoryProgramme (FPP) in Risk Management with the NUS RiskManagementInstitute(RMI)

12.06.06

15.08.06

23.10.06

28.10.06

17.11.06

11.12.06

Annual Report 2006

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highlightsof the year


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highlights of the year

Financial Industry Competency Standards

LaunchofthefullsetofCompetencyStandards

TheFICSwaslaunchedinSeptember2005withtheobjectiveofputtinginplaceaframeworkandstructurethatwillhelptodevelopaleadingedgefinancialsectorworkforcetosupportSingaporeasaninternationalfinancialcentreandtofacilitatelifelonglearningandlong-termemployabilityofthefinancialcentreworkforce.

Standardsfor4jobfamilies(RelationshipManagement-HighNetWorth, Financial Markets-Trading, General Insurance-ClaimsHandlingandLife Insurance-ClaimsHandling)were released inthepilotphasetoenableIBFtobettermonitortherolloutoftheframework,andfine-tuneit,wherenecessary,beforethefullsetofstandardswasreleased.

Withanencouraginglevelofinterestamongfinancialinstitutionsandfinancialtrainingprovidersfollowingthelaunch,IBFreleasedtheCompetencyStandardsforanother48jobfamilies,spanningthe various industry segments of Financial Markets, CorporateBanking, Corporate Finance, Fund Management, WealthManagement,GeneralInsurance,LifeInsurance,ComplianceandRiskManagement,on12June2006toallowgreateraccesstotheFICSamongfinancialinstitutionsandtrainingproviders.

The FICS framework comprises a set of standards as well as curriculum and assessment guides that relate to the competencies required of financial practitioners for specific job functions. Individuals who wish to make use of FICS to plan their journey for professional development can access a high-level version of the standards from the IBF website. The information includes the broad descriptions of Job Roles, Competency Units, Competency Elements, as well as Certification Requirements for each Job Family.

Organisations in Singapore who are interested in leveraging on the FICS to develop training or assessment programmes can apply to IBF for a User Account that will enable them to download the detailed set of standards. The application for a User Account is free and there is also no charge for access/downloading of the standards.

Annual Report 2006

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COMPLIANCE 1 Compliance-Anti-MoneyLaundering 2 Compliance-Consumer 3 Compliance-FundManagement 4 Compliance-Insurance 5 Compliance-WealthManagement 6 Compliance-Wholesale

CORPORATEBANKING 7 CashManagement 8 CreditAnalysis&Approval 9 CreditControl&Administration 10 ProjectFinancing 11 RelationshipManagement-EnterpriseBanking 12 RelationshipManagement-WholesaleBanking 13 Sales&Marketing-TransactionServices 14 StructuredFinancingAdvisory 15 TradeFinance 16 TransactionsProcessing,Control&Support

CORPORATEFINANCE 17 Origination,Structuring&Advisory-Equities 18 Sales&Distribution-PrimaryMarkets

FINANCIALMARKETS 19 AssetSecuritisation 20 Operations/DealProcessing&Settlements 21 DebtOrigination&Syndication 22 ProductControl 23 Research 24 Trading 25 TreasurySales

FUNDMANAGEMENT 26 BusinessDevelopment-Institutional 27 BusinessDevelopment-Retail 28 CentralDealing 29 FundAdministration 30 PerformanceMeasurement 31 PortfolioManagement 32 ProductDevelopment

GENERALINSURANCE 33 ClaimsHandling 34 Underwriting

LIFEINSURANCE 35 ClaimsHandling 36 Underwriting

FinancialIndustryCompetencyStandardsfor52JobFamilies


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Professor Narayan Pant, Professor of Strategy and Associate Dean of Executive Education, INSEAD, delivering a speech on “Views on the Changing Role of HR” at the Institute’s ��st Annual General Meeting.

Mr Heng Swee Keat, Chairman of IBF, announcing the launch of the full set of Financial Industry Competency Standards during the opening address of the Institute’s ��st Annual General Meeting on �2 June 2006.

RISKMANAGEMENT 37 AssetLiabilityManagement-Banking 38 AssetLiabilityManagement-Insurance 39 CreditAnalytics 40 CreditRiskManagement-ConsumerBanking 41 CreditRiskManagement-CorporateBanking 42 MarketRiskAnalytics 43 MarketRiskManagement 44 OperationalRiskManagement

SECURITIES&FUTURES 45 Trading(Dealers,Remisiers)/Stockbroking

PRIVATEEQUITY 46 PrivateEquity

WEALTHMANAGEMENT 47 InvestmentAdvisory 48 RelationshipManagement-HighNetWorth 49 RelationshipManagement-MassAffluent 50 RelationshipManagement-Retail 51 TrustAdministration 52 Trust&EstatePlanning

Annual Report 2006

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FinanceConnectSingapore

The FinanceConnectSingapore (FCS) website waslaunched at the JobsCentral Career Fair held atSuntecCityfrom28to29October2006.Theguest-of-honour,DrTeoHoPin,MayorofNorthWestCDCandMP forBukitPanjangSMC,officiatedthe career fair which attracted about 20,000 jobseekers. The website will augment IBF’s currentinitiatives to draw fresh talent into the financialsector,byhighlightingthevibrancyanddynamismofSingaporeasakeyfinancialcentre,andthework,liveandplaypropositionSingaporehastooffer.

The FCS website reaches out to both localand foreign talents, and provides comprehensiveinformation on Singapore’s financial industry,careeropportunities,andtraininganddevelopmentopportunities.Todate,thewebsitehasshowntrafficgrowth, registering over 15,000 visits and over120,000hits.IBFwillcontinuetoreviewandfine-tune the contents of the website, in consultationwith the industry and the Monetary Authority ofSingapore.



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Financial Talent Education and Development Task Force

IBFestablishedatri-partiteFinancialTalentEducationandDevelopment(FTED)TaskForceinJune2006toserveasaplatformforthefinancialindustryandinstitutionsofhigherlearning(IHLs)inSingaporetoaddresstheskillneedsofthefinancialsector.TheFTEDTaskForce,chairedbyIBFCouncil Member Mr Ong ChongTee, has made severalrecommendations to ensure a better alignment betweenpre-employmenttrainingandtheskillsthatfinancialsectoremployersdesire in fresh graduates.Thiswill ensure thatSingaporegraduatescontinuetobesoughtafterbyfinancialsectoremployersandthatourfinancialindustrycontinuestobenefitfromwell-trainedandjob-readygraduates.

TheTermsofReferenceadoptedbytheFTEDTaskForceare:(i) to assess the adequacy of existing programmes in

impartingtheskillssetsandskillsmixrequiredbythefinancialsector;

(ii) torecommendmeasurestodevelopsuchskillsthroughcurriculumenhancementandotheravenues;and

(iii)to recommend ways for better industry-academiacollaboration to facilitate the timely supply of job-readygraduates.

TheTask Force has recommended, among other things,betteruseofinternshipstoallowstudentstogainpracticalskills and appreciation of the systems and structuresin financial institutions. Internships should be madecompulsory, their duration increased, and financialinstitutionsshouldoffermoreinternshipopportunities.

The Task Force also suggested that, to integrate pre-employment training (PET) and practical training evenfurther, IHLs and financial sector employers couldcollaboratetooffer“dualtraining”,modeledontheSwiss/Germanmodelofapprenticeships.

Asgraduatesfromotherdisciplinessuchasengineeringandmathematicsareincreasinglysoughtafterbyfinancialsectoremployersfortheiruniqueskillsets,morecouldbedonetofacilitatetheflowofthesestudentsintothefinancialsector,forexample,throughtheofferofinter-disciplinarymodulesandinternshipopportunities.

TheTaskForcealsonotedthatmorecouldbedonetoenhancethesoftskillsofgraduates.

TheFTEDTaskForcecomprisesthefollowingdistinguished members from the industry,academia and government agencies (MAS andWDA):• Mr Ong Chong Tee, Deputy Managing

Director,MAS(Chairman)

• MrJamalNasir,AreaHeadofHRSingapore&SEA,StandardCharteredBank

• MsStellaWong,HeadofHumanResources,HSBC

• MsMollyYeo,HeadofHumanResources,ABNAMRO

• Mr Joachim Quah, Director of HumanResources,CreditSuisse

• MsTheresaSoikkeli,ManagingDirector&HeadofGroupHumanResources,DBS

• Ms CynthiaTan, Head of Group HumanResources,OCBC

• MsJennyWong,ExecutiveVicePresident&GlobalHeadofGroupHumanResources,UOB

• Ms Charlotte Thng, Head of HumanResource,CitigroupCorporate&InvestmentBank,Citigroup

• DrBerndLehmann,ChiefHumanResourceOfficer, Allianz Insurance Management,AsiaPacific

• ProfTanChinTong,Provost,SMU

• Prof Lily Kong, Vice Provost (Education),NUS

• ProfErMengHwa,ActingProvost,NTU

• MrChiaMiaChiang,Principal,NgeeAnnPolytechnic

• Mr LowWong Fook, Principal, SingaporePolytechnic

• DrGaryWillmott,DeputyChiefExecutive,WDA


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organisationalinitiatives and affairs


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organisational initiatives and affairs

Raising the Bar for Financial Practitioners

FinancialIndustryCompetencyStandards(FICS)

FICSAccreditationThe accreditation system plays a crucial role in ensuringthatcompetency-basedtrainingandassessmentarecarriedouteffectivelyandsupportstheintegrityandreliabilityofFICScertification.

Under theFICSAccreditationFramework, IBFconductsindependent quality review based on 8 Criteria forAssessment and 9 Criteria for Training. The frameworkintegrates international best practices and is broadlyaligned to WDA’s Quality Assurance system for CourseAccreditation under the Workforce Skills Qualificationframework (WSQ), subject to modifications recognisingtheuniqueneedsofthefinancialservicesindustry.

To create a solid foundation for the FICS to thrive andmeet itsobjectives,mostof IBF’s resources in2006werededicatedtoestablishingtheFICSAccreditationFrameworkforTraining andAssessmentServiceProviders.A totalof13applicationswereprocessedin2006.Theaccreditationaudit and review encompassed training materials reviewspanninganaggregatenumberof43competencyunitsandassessmentmaterialsreviewforanaggregatenumberof63competencyunits.

AccreditationAdvisoryPanel(AAP)TheAAPwasestablishedtoprovideadviceandguidancetoIBFontechnicalaspectsoftheapplicationsforaccreditationoffinancial trainingandassessmentprogrammesfromanindustryperspective.

To augment the initial panel of 21 members appointedduring the FICS launch in September 2005, the FICSWorkingGroupshavealsokindlyagreedtoserveasAAPmembers for the 48 job families that were launched on12June2006.

BuildingupAssessmentCapabilitiesOne key element to ensure the success of theFICS implementation is the need to build upapoolofqualifiedassessorswhohavetheskillsto develop and conduct competency-basedassessment, in addition to possessing relevantindustry experience and technical competencyforthejobrolesbeingassessed.

To encourage HR practitioners, financialprofessionals and training providers to betrained as assessors, IBF has drawn on theNomuraTrainingGranttoprovidefundingfortheCompetencyBasedAssessmentprogrammeundertheWSQAdvancedCertificateinTrainingandAssessment.Sofar,53financialpractitionersfrom26differentorganisationshavesuccessfullycompletedtheprogramme.

FICSCertificationMore than 50 financial practitioners have beenawarded Statement(s) of Attainment (SOAs)and119practitionershavegonethroughFICS-accredited training programmes. The numberof certified practitioners is expected to risefrom the currentnumberof17 asmoreFICS-accredited training and assessment programmesareintroduced.

FICSPROGESS2006

Financialinstitutionsadoptingtheframework 27

Financialtrainingprovidersadoptingtheframework 3

Financialpractitionerstrained 119

FinancialpractitionersawardedStatement(s)ofAttainment

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FICScertifiedpractitioners 17

Annual Report 2006

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First foreign full bank to receive FICS accreditationOn 2� July 2006, Standard Chartered Bank became the first foreign full bank to receive Financial Industry Competency Standards (FICS) accreditation as an Accredited Assessment Service Provider for its “Global Markets, Trading Job Family Role IV” assessment programme in the area of Financial Markets: Trading. First financial institution to be FICS-accredited for all job roles within a job familyOn �� November 2006, UBS AG achieved FICS accreditation as a Financial Training Provider and Assessment Service Provider, within the Relationship Management: High Net Worth job family (Role V and VI), in addition to the accreditation it had earlier received for Roles III and IV in September 2006. With this accreditation, UBS became the first financial institution to be FICS-accredited for all job roles within a job family.

FICSFundingSchemeThe Monetary Authority of Singapore (MAS)through the Financial Sector DevelopmentFundissupportingthetrainingofpractitionersthroughFICS-accreditedprograms.

TheFSDFFICSschemefunds70%oftrainingandassessmentfees,subjecttorelevantcaps.Allapplications for funding canbemade throughIBF, on IBF’s website. As at 31 December2006,wehavedisburseda fundingamountofapproximately$19,000.

MonthlySharingSessionsTo reach out to financial institutions andfinancialtrainingprovidersandencouragethemto leverage on the FICS framework to buildhuman resource capabilities, IBF conductsmonthly sharing sessions to share the keyfeatures of FICS. As at 31 December 2006,wehavereachedout toover80HRpersonnelandindustrypractitionersthroughthemonthlysharingsessions.

Breaking Ground

FICSAccreditedProviders(asat30Mar2007)

Organisation FICSJobFamilyandAccreditationScope ProgrammeTitle CreditSuisse WealthManagement:RelationshipManagement TraintoRelationshipManager(JobRoleIV) (HighNetWorth)-TrainingandAssessment

DBSBank CorporateBanking:RelationshipManagement EnterpriseBankingDevelopmentProgram (EnterpriseBanking)-Training

GreatEasternLife LifeInsurance:ClaimsHandling-Assessment ProfessionalCompetency-ClaimsHandling AssuranceCo.Ltd. (JobRoleIII)

OrionHumanCapital WealthManagement:RelationshipManagement AssessmentServices(JobRoleIII,IV,V&VI) (HighNetWorth)-Assessment

WealthManagement:RelationshipManagement AssessmentServices(JobRoleIII) (Retail)-Assessment

StandardCharteredBank FinancialMarkets:Trading-Assessment GlobalMarkets,TradingJobFamilyRoleIV

SingaporeCollege GeneralInsurance:ClaimsHandling-Training GeneralInsuranceClaimsHandling-Understanding ofInsurance theLegalandPracticalAspects(GeneralInsurance -ClaimsHandling,JobRoleIII)

UBSAG WealthManagement:RelationshipManagement i. ClientRelationshipManagement(Level1) (HighNetWorth)-TrainingandAssessment ii. ClientRelationshipManagement(Levels2&3) iii.ClientRelationshipManagement (ExecutiveProgrammeI) iv.ClientRelationshipManagement (ExecutiveProgrammeII)

WealthManagement WealthManagement:RelationshipManagement i. WMICertificateinPrivateBanking(JobRoleIV) Institute (HighNetWorth)-Training ii. ThePsychologyofBeingaTrustedAdvisor


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AccreditationAdvisoryPanel(AAP)Members

WEALTHMANAGEMENT

MsAnthoniaHuiSeniorClientPartner,GlobalMarket

MrEliLenyounHeadofWealthManagementServices,AsiaBNPParibasPrivateBank

MrAndrePfaendlerDeputyHead,BusinessSchoolCampusAsiaCreditSuisse,Singapore

DrDennisWatManagingDirector,InvestmentAdvisoryGroupHSBCPrivateBank(Suisse)SASingapore

MrWeeYanHannHeadofInvestment,PrivateBankingOCBC

MrWongSiuFunManagingDirector&RegionalHead,PrivateBankDBSBank

FINANCIALMARKETS

MrDavidDredgeHeadofLocalMarketsTrading,AsiaandGlobalMarketsHeadABNAmro,Singapore

MrLeeBoonHuatRegionalTreasurer,SouthEastAsiaStandardCharteredBank

MrLohBoonChyeManagingDirector&HeadofGlobalMarketsDeutscheBank

MrNgKwanMengManagingDirector,GlobalTreasury,FinancialProducts&ServicesUOB

MrStephanRepkowHeadofFixedIncome,Singapore&HeadofALM-Treasury,AsiaPacificBNPParibas

MrRonnyTanChiefCountryOfficer&GeneralManagerDeutscheBank

MrWongBanSuanManagingDirector&Head,CentralTreasuryDBSBank

LIFEINSURANCE

MrPatrickKokAsstVicePresident,Claims&PolicyServicesAmericanInternationalAssuranceCompany,Ltd

MrReeveOngHead,ClaimsDeptGreatEasternLife

GENERALINSURANCE

MsChangBeeWahSeniorManager,ClaimsDeptAvivaInsurance(International)Ltd

MsLucyLohVicePresident,ClaimsAmericanHomeAssuranceCo,AIGLimited

MrG.P.TeoTokioMarine&FireInsuranceCo(S)PteLtd

MrFreddyNeoGeneralManager,GeneralInsuranceDeptNTUCIncome(AlsoforLifeInsurance)

FICSSteeringCommittee

CHAIRPERSON REPRESENTING

MsEuleenGoh • IBFCouncil

VICECHAIRPERSON

MrDavidWong • SingaporeForeignExchangeMarketManagingDirector& CommitteeforFinancialMarketsCountryExecutive,S.E.A. ABNAMROBankNV

COMMITTEEMEMBERS

MsJoanTing-Wong • AssociationofBanksinSingaporeManagingDirector&JointHead forCorporateBankingCorporateCreditGroupDBSBank

MrsYvetteCheak • AssociationofBanksinSingaporeManagingDirector&Head, forComplianceandRiskManagementGroupEthics&ComplianceBNPParibas

MrGeraldOng • SingaporeInvestmentBankingCEO AssociationforCorporateFinancePrimePartnersCorporateFinancePteLtd

MrHouWeyFook • InvestmentManagementAssociationof ExecutiveDirector SingaporeforFundManagementLionCapitalManagementLtd

MsStellaTan • GeneralInsuranceAssociationof CEO SingaporeforGeneralInsuranceTenetInsuranceCompanyLtd

AssocProfAnnieKoh • FinancialTrainingProvidersDean,ExecutiveEducationandAssociateDean,LeeKongChianSchoolofBusinessSingaporeManagementUniversity

MsLooSiewYee • MonetaryAuthorityofSingaporeCEO,IBFDirector,StrategicDevelopmentFinancialCentreDevelopmentDepartmentMonetaryAuthorityofSingapore

DrYim-TeoTienHua • SingaporeWorkforceDevelopmentAgencyDirectorCommunity&ProfessionalServicesDivisionSingaporeWorkforceDevelopmentAgency

MrTeeFongSeng • AssociationofBanksinSingaporeforManagingDirector WealthManagement(PrivateBanking)HeadofWealthManagementInternational,SingaporeUBSAG

MrAnilWadhwani • AssociationofBanksinSingaporeforBusinessDirector&HeadofRetailBanking WealthManagement(RetailBanking)CitibankSingaporeLtd

COMMITTEEMEMBERSWHOSTEPPEDDOWNDURINGTHEYEAR

MrEdgarTeoDirector,StrategicDevelopmentFinancialCentreDevelopmentDepartmentMonetaryAuthorityofSingapore

Annual Report 2006

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FICSWorkingGroups

COMPLIANCE&RISKMANAGEMENTWORKINGGROUPMEMBERS

CHAIRPERSON

MrsYvetteCheakManagingDirector&Head,GroupEthics&ComplianceBNPParibas

WGMEMBERS

MrJosephChenHeadofGroupConsumerCreditDBSBank

MrChinWeeCheakVicePresidentRegulatoryComplianceUnitGeneralCounsel’sOfficeOCBCBank

MrNoelD’CruzHeadRiskPortfolioManagementUnitOCBCBank

MsGohGeokChengDirector,FinancePrudentialAssuranceCo.Singapore(Pte)Ltd

MrConradLimHeadofLegal&ComplianceCredit-SuisseSingaporeBranch

MrLimHimChuanVicePresident,GroupRiskDBSBank

MsOngPeckKimHead,RiskManagementMaybank

MrPhuaKokKhiangAsst.DirectorComplianceLegalandComplianceUBSAG

MrTeeWooiSeongCreditClientRelationships,SingaporeStandardCharteredBank

MsLilyTeoHeadofLegalBayerischeHypo-UndVereinsbank

MrJosephWongHeadofCreditforConsumerOCBCBank

CORPORATEBANKINGWORKINGGROUPMEMBERS

CHAIRPERSON

MsJoanTing-WongManagingDirector&JointHeadCorporateCreditGroupDBSBank

WGMEMBERS

MrGohChongThengGeneralManager,SingaporeBranchRabobankInternational

MsJasmineLauHead-RiskAnalysisUnitHongkong&ShanghaiBankingCorporationLtd

MrJamalNasirSeniorHumanResourceManagerStandardCharteredBank

CORPORATEFINANCEWORKINGGROUPMEMBERS

CHAIRPERSON

MrGeraldOngCEOPrimePartnersCorporateFinancePteLtd

WGMEMBERS

MrLohHoonSunManagingDirectorPhillipSecuritiesPteLtd

MrFrietsNelsManagingDirectorandHeadofEquities(ASEAN)CiticorpInvestmentBank(Singapore)Ltd

MrSooYuChuanSeniorVicePresidentAssistantHeadRiskManagement&RegulationGroupSingaporeExchangeLtd

MrTanJehWuanManagingDirectorEquityCapitalMarketDBSBank

MrKimTeoHeadofRetailEquitiesCIMB-GKSecuritiesPteLtd

FINANCIALMARKETSWORKINGGROUPMEMBERS

CHAIRPERSON

MrDavidWongMD&CountryExecutive,S.E.A.ABNAMROBankNV

WGMEMBERS

MrGuanYeowKwangJointGeneralManagerMizuhoCorporateBankLtd

DrAaronLowPrincipal,LumenAdvisorsLLCManagingDirectorLumenAdvisors(Asia)PteLtd

MrNgKwanMengManagingDirectorGlobalTreasury,FinancialProduct&ServicesUnitedOverseasBankLtd,HeadOffice

MrOoiBoonPengExecutiveDirectorUOBAssetManagementLtd

FUNDMANAGEMENTWORKINGGROUPMEMBERS

CHAIRPERSON

MrHouWeyFookExecutiveDirectorLionCapitalManagementLtd

WGMEMBERS

DrJosephLimDeptofFinance&AccountingNationalUniversityofSingapore

MrV.GiriMudeliarExecutiveDirectorInvestmentManagementAssociationofSingapore

MrAnsonTayChiefOperatingOfficerSGAssetManagement(Singapore)Ltd

MrTeoJooWahDirectorFundManagementTemasekHoldings(Pte)Ltd

MrThioBoonKiatDirectorUOBAssetManagementLtd

GENERALINSURANCEWORKINGGROUPMEMBERS

CHAIRPERSON

MsStellaTanCEOTenetInsuranceCompanyLtd

WGMEMBERS

MsLucyLohVicePresident-ClaimsAmericanHomeAssuranceCompany,AIGLimited

MsEdnaNgoDivisionManager-ClaimsTenetInsuranceCoLtd

MrDerenceTeoConsultant,HRDAllianzInsuranceManagementAsiaPacificPteLtd

MrRonaldYeeHRDManagerNTUCIncomeInsuranceCooperativeLtd

LIFEINSURANCEWORKINGGROUPMEMBERS

CHAIRPERSON

MrJasonSadlerGeneralManagerHSBCInsurance(Singapore)PteLtd

WGMEMBERS

MsWendyAngTrainerAXALifeInsuranceSingaporePteLtd

MsLimAiLingAsstVicePresident,HRManulife(Singapore)PteLtd

MrNelsonRajManagerFPCOE,DistributionAXALifeInsuranceSingaporePteLtd

MrJimmyTanVicePresident,StrategicResourceManagementGreatEasternLifeAssuranceCoLtd

MsKohWanTsyrAsstDirectorPrudentialAssuranceCo.Singapore(Pte)Ltd

MrRonaldYeeHRDManagerNTUCIncomeInsuranceCooperativeLtd

WEALTHMANAGEMENT(PRIVATEBANKING)WORKINGGROUP

CHAIRPERSON

MrTeeFongSengManagingDirector&HeadofWealthManagementInternational,SingaporeUBSAG

WGMEMBERS

MrEddieGanSeniorVicePresidentPrivateBankingDBSBank

MsAnthoniaHuiSeniorClientPartnerCreditSuissePrivateBank

MrEliLenyounHeadofWealthManagementServices,AsiaBNPParibasPrivateBank

WEALTHMANAGEMENT(RETAILBANKING)WORKINGGROUP

CHAIRPERSON

MrAnilWadhwaniBusinessDirector&HeadofRetailBankingCitibankSingaporeLimited

WGMEMBERS

MsJoyceHengVicePresidentConsumerBankingGroup(SalesCompetency&Training)DBSBank

MrJosephKwokManager,FinancialAdvisoryWealthManagementConsumerBankingStandardCharteredBank

MrGlennLeeAssociateDirector(Marketing&BusinessDevelopment)UOBAssetManagement

MsNgoMinYingGeneralManagerSharedDistributionStandardCharteredBank

MsJesslynTanVicePresident,CentreforExcellenceGreatEasternLifeAssuranceCo.Ltd

FINANCIALTRAININGPROVIDERWORKINGGROUPMEMBERS

CHAIRPERSON

AssocProfAnnieKohDean,ExecutiveEducationandAssociateDean,LeeKongChianSchoolofBusinessSingaporeManagementUniversity

WGMEMBERS

MrPhilipForrestManagingDirector,AsiaOmegaPerformance

MsKhooSorHwaCourseManagerAccounting&FinanceTemasekBusinessSchoolTemasekPolytechnic

MrPaulTanSectionHead(Banking&Finance)SchoolofBusiness&AccountancyNgeeAnnPolytechnic

MsLimMayMayRegionalDirectorFTKnowledgeFinancialTimes

MsLokeSaiKengVicePresident,Learning&DevelopmentCentreUOBGroup

MsJuanitaMegaRegionalSalesDirectorFinancialMarkets,AsiaTheFinancialTrainingCompany

MsCynthiaNgVicePresident,LearningandDevelopmentTheHongkong&ShanghaiBankingCorporationLtd

DrJohnnyTanManagingDirectorImpactConsultancy&TrainingPteLtd

MsWongMeiShanSectionHead,BankingSectionSchoolofBusinessSingaporePolytechnic


2�Enhancing the Job Readiness of Graduates

FinancePreparatoryProgrammes(FPP)

The Financial Talent Education and Development(FTED)Task Force (see Highlights of theYear) is a keyIBF-led initiative to enhance the alignmentbetweenpre-employment training (PET) and industry expectationsof fresh graduates. To complement this longer termstrategicinitiative,andtohelpmeetimmediatemanpowerrequirements, IBF has developed finance preparatoryprogrammes (FPPs) in consultationwith industryplayersandfinancialtrainingproviders,tobridgethegapbetweenPETandactualjobrequirements.

Todevelopyoungtalentinriskmanagement,IBFdevelopedanFPPwiththeNUSRiskManagementInstitute(RMI),aimed at equipping final year university students withsound foundational and practical knowledge of financialriskmanagement.IntroducedinDecember2006,the10-day intensive “Certificate in Risk Management” coveredtopicsonMathematicalFoundationsofRiskMeasurement,Finance Theory and Financial Instruments, and RiskManagementPractices.

To address manpower needs in middle and back officeoperations, IBF is working with the Securities &InvestmentInstitute(SII),UKandACISingapore–TheFinancial Markets Association, to launch the OperationsFinancePreparatoryProgramme(OFPP).CandidateswhocompleteOFPPwillobtaintheInvestmentAdministrationQualification (IAQ) by the SII and the Certificate ofSettlementOperationsIntroductoryCourse(SOIC)fromACISingapore.Thefirst runhasbeenscheduledforJuly2007. The development of OFPP has benefited fromactive input from major investments banks andTemasekPolytechnic.

Intheareaoffundadministration,IBFwillalsobeworkingcloselywithMAS,NanyangPolytechnicandseveral fundadministrationplayerstodiscussthefeasibilityofofferingan FPP to final-year polytechnic students.This will helpto develop a pipeline of job-ready graduates to meet themanpowerneedsofthefundadministrationindustrywhichhasgrownsignificantlyoverthepastyear.

Outreach to Talent Pools

Financial Sector Seminar Series forLocalStudents

To encourage student interest in growth areassuch as wealth management (private banking,fund management, trust, and insurance) andtreasury operations, IBF collaborated withleading industry practitioners to profile careeropportunitiesinthoseareasthroughaseriesoftalks at the localuniversities andpolytechnics.Ten events were organized. Invited panelistsand speakers include Mr Henk De Glint(Fortis Bank), Mr Eli Lenyoun (BNPParibas), Mr Lee Chiwi (British & MalayanTrustees Limited), Mr Michael Darwyne(Portcullis Trust), Mr Scott Ryrie (XL Re),MsAratiVarma (ChubbsSpecialty Insurance),Mr David Wong (ABN AMRO), Mr AndrewKwek(IMAS),MrTerryLee(ACISingapore),MsCarolChan(CreditSuisse),MrChristopherTan(ProvidendPrivateLimited),MrGuanYeowKwang (SFEMC) and Ms Aruno Rajaratnam(FINEX, Asia for Willis Insurance Brokers).In our continuing effort to better profile theopportunities and skills requisites, and toattract top talents to the growth areas in thefinancialservicesindustry,IBFwillcontinuetocollaboratewiththeindustryandtheinstitutesofhigherlearningin2007tooffersuchtalks.

Annual Report 2006

22Continuing Education and Training

ContinuingEducationProgrammesForTradingRepresentatives(CEPTR)

To meet the continuing education needs of the tradingrepresentatives of SGX, the Institute continued tocollaboratewithSGXtodeliverasuiteofcoursescoveringtopicsrangingfromproductknowledgeandskillupdatestorulesandregulations(seebelowlist).In2006,IBFofferedatotalof12coursesand888tradingrepresentativesattendedthem,anincreasefromatotalof544in2005.

• ADisciplinedApproachtoWealthManagement(offeredtwice)

• Anti-MoneyLaundering/CounteringTerroristFinancingLawsandPractices

• Anti-MoneyLaunderingLawsandPractices• CandlestickCharting-ForShort-TermTradingSignals• EquityDerivatives-Warrants,FuturesandOptions• FinancialAssetPriceMovementsandthe

SingaporeEconomy• ManagingPersonalWealth:AStewardship(offeredtwice)• RecentDevelopmentsinAnti-Money

LaunderingGuidelines• TheRoadtoIPO(offeredtwice)• TradingwithCharts(offeredtwice)• E-learning-EquityDerivativesandWarrants• E-learning-EquityValuation,SettlementandCustody

andtheSingaporeEquityMarket

Inaddition,uponrequestsfromG.K.GohFinancialServices(S) Pte Ltd (formerly known as G.K. Goh Futures) andOng FirstTradition Pte Ltd, IBF facilitated the deliveryof 3 in-house programmes on “Anti-money Laundering/Countering Terrorist Financing Laws and Practices”and “Recent Developments in Anti-Money LaunderingGuidelines”fortheirstaff.ThecourseswereconductedinMarch,AprilandNovember.

MoneySENSEprogrammes

IBFcontinuedtopartnerwiththeCivilServiceCollege(CSC)Singaporetoofferaprogramme“InvestingforLife”inSeptember.Atotalof21attendeesparticipatedinthesession.

TalkSeries

IBF also collaborated with Portcullis Trust(Singapore)Limited,toorganizeatalkentitled“WhatCanTrustsDoforYou”.Thetalk,heldinJuly2006,drewatotalof21participantsfromourmemberbanks.


2�Capital Markets and Financial Advisory Services (CMFAS) Examination

In2006,theInstitutereceiveda total registration of 8,151candidates for the CMFASexamination. This representsa slight increase from the8,117 candidates enrolled in2005.

In addition, to facilitatethe efforts of financialinstitutions in moving stafffromotherregionalcountriestotheofficesinSingapore,theInstitutecontinuedtoaccedetorequestsforadministeringexaminationsoverseasduringcertain lull periods. Onesuch examination was heldin October 2006 for 24candidates inMumbaiuponrequestfromICICIBankLtd.

The Institute continuedto administer 6 of the 9modules of the CMFASexaminationsonbehalfoftheMAS.Thisistoensurethatlicensed representatives who are carrying out regulatedactivitiesandfinancialadvisoryservicesundertheFinancialAdvisersAct(FAA)andSecuritiesandFuturesAct(SFA)haveagoodunderstandingoftherelevantrulesandregulations,aswellas theproductsandanalysis toolsandtechniques.

Abreakdownof theexamination registrationbyCMFASmodules is given in Figure 1. The Institute launched aweb-basedonline examination registration system in July2005 to allow individuals and financial institutions toregisterandpayfortheexaminationsatanytimeandfromanyplace.This system was further enhanced in February2006 to allow online transfer of examination dates.TheInstitute would like to thank the Monetary Authority ofSingapore(MAS),SingaporeExchangeLtd(SGX),CentralProvident Fund Board (CPF), Investment ManagementAssociation of Singapore (IMAS) and the SingaporeInvestment Banking Association (SIBA) for their strongsupport and assistance given to the Institute over theyears in the review of the study guides and examinationquestionstoensurethattheyremainadequateandrelevant.

3000

2500

2000

1500

1000

500

0 M-1 M-1A M-1B M-2 M-3 M-4A M-4B M-6 M-7

1397

1158 1218

1713

2606

430 51

9

720

584 633

621

17 31

1750

2170

299 40

2

0

Figure1-CMFASEnrolmentChart2005and2006

20052006

Examination on Treasury Activities (ETA)

The ETA examination aims to equippractitioners in treasury activities with a highstandard of dealing knowledge and skills, aswell as professional and ethical conduct. Theexamination is based on the Singapore Guideto Conduct and Market Practices forTreasuryActivities (also known as “The Blue Book”)issued by the Singapore Foreign ExchangeMarket Committee (SFEMC). In 2006, 34candidatessatfortheexamination.

Module1 RulesandRegulationsforDealinginSecurities(Upto15April2005)Module1A RulesandRegulationsforDealinginSecurities(SGX-STMembers)Module1B RulesandRegulationsforDealinginSecurities(Non-SGX-STMembers)Module2 RulesandRegulationsforTradinginFuturesContractsModule3 RulesandRegulationsforFundManagementModule4A RulesandRegulationsforAdvisingonCorporateFinanceModule4B RulesandRegulationsforAdvisingonCorporateFinance(SolelyDebtSecurities)Module6 SecuritiesProductsandAnalysisModule7 FuturesProductsandAnalysis

Legend

Annual Report 2006

2�Regional Partnership and Outreach ASEANBankingCouncilPermanentCommitteeonEducation

IBFparticipated in the36thASEANBankingCouncil Meeting held on 18 Nov 2006 inSingapore with the theme “Asian Unity andIntegration”. Represented on the PermanentCommittee on Education along with theBanking Institutesofothermember countries,IBFsupportstheeffortsoftheBankingCouncilto narrow the development gap amongst theASEAN members. While several membercountries are currently at the stage of settingupbankinginstitutesastrainingproviders,andleveragingon the trainingprogrammesofferedbyothermembers’bankinginstitutes,IBFstandsready to share its experience and expertise indevelopingtheFinancialIndustryCompetencyStandardstointerestedmembercountries.

11thBiennialAsian&PacificAssociationofBankingInstitutes(APABI)Conference

Since the inauguralmeetingchairedby IBF in1986, theAPABI conference has been holding biennial meetingswith the objectives of promoting greater rapport andunderstanding of banking education and training andcooperation among members in banking education andtraining.

The11thBiennialAPABIConferencewasheld inSeoul,Koreafrom22to24October2006.ChairedbytheKoreaBankingInstitute,theconferencewaswellattendedby14members representing various national banking institutesin the Asian-Pacific region. With the theme “New RolesofThe APABI - Meeting the Challenges of Change andInnovation”, the importance of accelerating the learninganddevelopmentprocesstodealwithincreasinglycomplexrisksandheightenedpaceofchangeandinnovationhavebeen the recurring themes throughout the exchange ofexperiencesandideasamongmembers.IBFalsoshareditsvariousrecentinitiatives,suchasthelaunchofFICS,sinceits transformation in 2001 to take on a wider and morestrategic role of facilitating the development of a robust,forward-looking financial sector training infrastructureforSingapore.


2�Membership and Partnership

MembershipoftheInstitute

Totalnumberofmembersasat31Dec2006was169,anetdecreaseof6memberscompared to175at the endof2005.During theyear,1newmember joined theInstituteand7left.TheslightdropinmembershipwasmainlyduetoorganizationalrestructuringandcessationofoperationsinSingapore.

LocalBanksDBSBankFarEasternBankLtdOCBCBankUnitedOverseasBankLtd

ForeignFullBanksABNAMROBankN.V.AmericanExpressBankLtdBangkokBankPublicCompanyLtdBankofAmerica,N.A.BankofChinaLtdBankofIndiaBNPParibasCalyonCIMBBankBerhadCitibankN.A.HLBankIndianBankIndianOverseasBankMaybankPTBankNegaraIndonesia(Persero)TBKRHBBankBerhadStandardCharteredBankSumitomoMitsuiBankingCorporationTheBankofEastAsiaLtdTheBankofTokyo-MitsubishiUFJ,LtdTheHongkong&ShanghaiBankingCorporationLtdUCOBank

WholesaleBanksAustralia&NewZealandBankingGroupLtdBarclaysBankplcBayerischeHypo-UndVereinsbankAktiengesellschaftBNPParibasPrivateBankCommerzbankAktiengesellschaftCreditIndustrieletCommercialCreditSuisseDeutscheBankAGDresdnerBankAGFirstCommercialBankFortisBankS.A./N.V.HabibBankLtdHSBCPrivateBank(Suisse)SAIndustrial&CommercialBankofChinaLimitedINGBankN.V.SanpaoloIMIS.P.A(NamechangedtoIntesaSanpaoloS.P.AinJan2007)KoreaExchangeBankLandesbankBaden-WürttembergMizuhoCorporateBankLtdNationalAustraliaBankLtd

NationalBankofKuwaitSAKNorddeutscheLandesbankGirozentraleRabobankSocieteGeneraleTheBankofNovaScotiaTheNorthernTrustCompanyTheRoyalBankofScotlandplcUBSAGVTBBankEuropeplcWestLBAGWestpacBankingCorporation

OffshoreBanksAgriculturalBankofChinaArabBankplcBancadiRomaS.P.ABankofCommunicationsCoLtdBankofNewZealandCanadianImperialBankofCommerceChangHwaCommercialBankLtdChinaConstructionBankCorporationClaridenLeuLtdCommonwealthBankofAustraliaCreditAgricole(Suisse)SADexiaBanqueInternationaleALuxembourgSADnBNORBankASASingaporeBranchDZBANKAGDeutscheZentral-Genossenschaftsbank,FrankfurtAmMainHangSengBankLtdICICIBankLtdKrungThaiBankPublicCompanyLtdMitsubishiUFJTrust&BankingCorporationNatixisNordeaBankFinlandplcPhilippineNationalBankPTBankMandiri(Persero)TBKRaiffeisenZentralbankOesterreichAktiengesellschaftRoyalBankofCanadaSkandinaviskaEnskildaBankenAB(publ)StateBankofIndiaSvenskaHandelsbankenABTheBankofNewYorkTheKoreaDevelopmentBankTheNorinchukinBankTheSiamCommercialBankPublicCoLtdTheSumitomoTrust&BankingCoLtdUniondeBanquesArabesetFrancaisesWooriBank

MerchantBanksAseanFinanceCorporationLtdBankPictet&Cie(Asia)LtdBankSarasin-Rabo(Asia)LimitedCalyonMerchantBankAsiaLtdCouttsBankvonErnstLtdCreditSuisse(Singapore)LtdDaiwaSecuritiesSMBCSingaporeLtdDVBGroupMerchantBank(Asia)LtdFortisPrivateBankingSingaporeLimitedINGAsiaPrivateBankLtdLloydsTSBMerchantBankLtdMerrillLynchInternationalBankLtdMitsubishiUFJSecurities(Singapore)LimitedNMRothschild&Sons(Singapore)LtdNomuraSingaporeLtdTheBankofNovaScotiaAsiaLtdTheNikkoMerchantBank(Singapore)LtdTorontoDominion(SEA)Ltd

CapitalMarketsServicesLicenceHolderAberdeenAssetManagementAsiaLtdAIGGlobalInvestmentCorporation(Singapore)LtdAPSAssetManagementPteLtdAXARosenbergInvestmentManagementAsiaPacificLtdBarclaysCapitalFutures(Singapore)PteLtdBlackRiverAssetManagement(Asia)PteLtdBNPParibasSecurities(Singapore)PteLtdCIMB-GKSecuritiesPteLtdCitigroupGlobalMarketsSingaporePteLtdCommerzbankAssetManagementAsiaLtdCreditAgricoleAssetManagementSingaporeLtdCreditSuisseSecurities(Singapore)PteLtdDaiwaSecuritiesSMBCFuturesPteLtdDBSAssetManagementLtdDBSVickersSecuritiesGroupDeutscheAssetManagement(Asia)LtdDMG&PartnersSecuritiesPteLtdFimatSingaporePteLtdFirstStateInvestments(Singapore)FraserSecuritiesPteLtdHSBCFutures(Singapore)PteLtdJ.P.MorganSecuritiesSingaporePteLtd

KimEngSecuritiesPteLtdLehmanBrothersIncLim&TanSecuritiesPteLtdLionCapitalManagementLimitedMacquarieSecurities(Singapore)PteLtdManFinancial(S)PteLtdMitsubishiUFJTrustInternationalLimitedMizuhoFutures(Singapore)PteLtdNomuraAssetManagementSingaporeLtdOCBCSecuritiesPteLtdOngFirstTraditionPteLtdPheimAssetManagement(Asia)PteLtdPhillipFuturesPteLtdPhillipSecuritiesPteLtdSBIE2-CapitalAsiaSecuritiesPteLtdSchroderInvestmentManagement(Singapore)LtdSGAssetManagement(Singapore)LtdStateStreetGlobalAdvisorsSingaporeLimitedUOBAssetManagementLtdUOBBullion&FuturesLtdUOBKayHianPteLtdWellingtonInternationalManagementCoPteLtdWesternAssetManagementCompanyPteLtd

RepOfficesofBanksAozoraBankLtdArabBankingCorporation(BSC)

FinanceCompaniesHongLeongFinanceLtdSingInvestments&FinanceLtdSingapuraFinanceLtd

ExchangeHoldingCompanySingaporeExchangeLtd

InsurerAXAFinancialServices(Singapore)PteLtd

OthersCargillAsiaPacificTreasuryLtdErnst&YoungGovernmentofSingaporeInvestmentCorporationPteLtdGuocoInvestmentServicesPteLtdMonetaryAuthorityofSingaporePortcullisTrustnet(Singapore)PteLtdPricewaterhouseCoopersVolvoTreasuryAsiaLtd

Annual Report 2006

26f-NExTPartners

The total number of f-NExT partners was 46, as at 31Dec2006,anetdecreaseof5members,comparedto51at the end of 2005.The drop was due to organizationalrestructuring.Withthesuccessfulroll-outoftheFICS,IBFwillbeengagingourf-NExTpartnerstoseekaccreditationunderFICS.

AcademicInstitutionsINSEADNanyangPolytechnicNanyangTechnologicalUniversityNationalUniversityofSingaporeNgeeAnnPolytechnicSingaporeManagementUniversitySingaporePolytechnicTemasekPolytechnicUniversityofChicago

e-LearningTrainingProvidersICUSIntuitionKESDEEInc.KnowledgePlatform

FinancialTrainingProvidersBritishCouncilDCGardnerTrainingEuroFinanceEuromoneyTrainingFinancialPerspectivesFTKnowledgeFinancialLearningFTCKaplanImpactConsultancy&TrainingPteLtdKPMGOmegaPerformancePricewaterhouseCoopersPSBAcademySBFTraining&Consultancy(International)PteLtdStandardandPoors,RiskSolution(AsiaPacific)TheRiskManagementAssociationWallStreetConsultingWealthManagementInstitute

FinancialTrainingProviders-StartupAchievaTrainingAmsterdamInstituteofFinanceAsianCenterforFinancialTrainingCFE-In-PracticeENBConsultingEvolvereIncGFTT-GlobalFinancialTrainingandTechnologyPIETAConsultingCompanySCLearningLtdTheBankingGroup,IncTheMatchettGroup

OtherPartnersSingaporeExchangeLtd

ProfessionalInstitutes/BodiesManagementDevelopmentInstituteofSingaporeSingaporeCollegeofInsuranceSingaporeHumanResourcesInstituteSingaporeInstituteofManagement


2�Organisational Improvements - Information Technology

FICSAccreditationCaseManagementSystem

With Competency Standards for all 52 job familieslaunched on 12 June 2006, the Institute implemented acase management tracking system for the FICS auditors.In addition to allowing the systematic tracking of allassessment/trainingsubmissions,itwillalsocapturealltheauditfindingsforupdateandreviewpurposes.

FICSFundingApplicationSystem

The Institute implemented a system where FinancialInstitutionscouldsubmitallinformationrequiredfortheirFICS fundingclaimsonlinewithout thehassleofhavingto keep hard-copy records of supporting documents. Inaddition, the systemallows for trackingof response timeforprocessingoffundingapplications.

EnhancementtoOnlineExaminationRegistration

With the successful implementation andoverwhelming response to the onlineexamination registration system rolled-out inJuly 2005, the Institute further enhanced thesystemtoenablecandidatestomakeexaminationdate transfers online. This has also enjoyedfavorableresponsefromthecandidates.Fortheyear2006,approximately60%ofexaminationcandidates opted for online examinationregistrationandmorethan65%ofexaminationdatetransfersweredoneonline.

TheInstituteofBankingandFinanceispleasedtoannouncetherelocationofitsofficepremisesto 10 ShentonWay, #13-07/08 MAS Building,Singapore 079117, effective 26 March 2007.

This move serves to accommodate the growthoftheInstituteandunderscoresourstrong linksand partnership with the Monetary AuthorityofSingapore.

Distinguished guests from the IBF Council and FICS Steering Committee visiting our new office premises on �� Apr 200�

The Institute’s new office premises at MAS Building

Relocation of the Institute’s Office Premises in March 2007

report of the council members and financial statementsThe Institute of Banking and Finance(Incorporated in the Republic of Singapore as a company limited by guarantee)Registration No. 197402045E


29

report of thecouncil members

The Council Members present their annual report together with the audited accounts of the Institute of Banking and Finance (the “Institute”) for the financial year ended December 31, 2006.

1 COUNCILMEMBERS

The Council Members in office at the date of this report are:

Representing:

Heng Swee Keat, Chairman Monetary Authority of Singapore

Wee Ee Cheong, Vice Chairman The Association of Banks in Singapore

David Philbrick Conner The Association of Banks in Singapore

Jackson Tai Local Bank Representative

Gary Maurice Willmott Ministry of Manpower

Ong Chong Tee Monetary Authority of Singapore

Loh Boon Chye The Singapore Foreign Exchange Market Committee

Derek Teo General Insurance Association of Singapore

Christopher Ho Siow Soong Singapore Reinsurers’ Association

George Lee Lap Wah The Singapore Investment Banking Association

Lee Kah Chuen Ministry of Education (Appointed on April 9, 2006)

Seck Wai Kwong Singapore Exchange Limited (Appointed on March 27, 2006)

Catherine Weir Foreign Bank Representative (Appointed on February 28, 2006)

Euleen Goh Yiu Kiang Financial Industry Competency Standards Representative (Appointed on February 28, 2006)

Lester Gray Investment Management Association of Singapore (Appointed on October 6, 2006)

Karine Kam Singapore College of Insurance (Appointed on July 1, 2006)

2 COUNCILMEMBERS’CONTRACTUALBENEFITS

A Council Member received benefits in the form of compensation as a member of the senior management of the group of which the investment manager appointed by the Institute is a part. Apart from this, no Council Member has received or become entitled to receive benefits by reason of a contract made by the Institute with the Council Member or with a firm of which he is a member, or with a company in which he has a substantial interest.

Annual Report 2006

30

3 SHARECAPITALANDOPTIONS

The Institute has no share capital and as such the provisions of Section 201(6)(f ), 201(6)(g), 201(8), 201(11), 201(12)(a) and (b) of the Singapore Companies Act, Cap. 50 are not applicable.

ONBEHALFOFTHECOUNCILMEMBERS

Heng Swee KeatChairman

Wee Ee CheongVice-Chairman

SingaporeMay 2, 2007


31

independent auditors’ report to the members of the institute of banking and finance

We have audited the accompanying financial statements of The Institute of Banking and Finance (the “Institute”) which comprise the statement of fund balances, assets and liabilities as at December 31, 2006, the statement of income and expenditure, changes in members’ funds and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 33 to 49.

CouncilMembers’Responsibility

The Institute’s council members are responsible for the preparation and fair presentation of these financial statements in accordance with Singapore Financial Reporting Standards and the Singapore Companies Act, Cap. 50 (the “Act”). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the council members, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Annual Report 2006

32

Opinion

In our opinion,

(a) the financial statements of the Institute are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Institute as at December 31, 2006 and of the results, changes in members’ funds and cash flows of the Institute for the year ended on that date; and

(b) the accounting and other records required by the Act to be kept by the Institute have been properly kept in accordance with the provisions of the Act.

Deloitte & ToucheCertified Public Accountants



33

statement of fund balances, assets and liabilitiesDecember 31, 2006

Note 2006 2005 $ $

Members’fundsIncome and expenditure account 25,279,206 24,698,686

Represented by:

Plantandequipment 5 1,012 31,880

Current assetsInvestments 6 21,388,988 20,738,276Inventories 3,105 8,730Accrued members’ subscriptions 577 577Accounts receivables 8,005 7,584Other receivables and prepayments 7 120,766 59,923Cash and cash equivalents 14 5,522,310 5,676,705Total current assets 27,043,751 26,491,795

Less:

CurrentliabilitiesPayables 8 102,802 169,807Courses and examinations fees received in advance 46,780 28,060Total current liabilities 149,582 197,867

Net current assets 26,894,169 26,293,928

Non-currentliabilitiesOperating grant 9 670,128 660,275Members’ funding contributions 10 945,847 966,847Total non-current liabilities 1,615,975 1,627,122

Netassets 25,279,206 24,698,686

The annexed notes form an integral part of and should be read in conjunction with these accounts.

Annual Report 2006

34

statement of income and expenditureYear ended December 31, 2006


Note 2006 2005 $ $

Income Fees from courses and examinations 1,018,187 1,054,361 Interest on bank deposits 111,101 64,358 Members’ subscriptions 51,700 49,450 Sale of publications 13,451 7,925 Entrance fees from new members 100 200 FSDF funding - reimbursements 18,667 - Fair value change on investments 650,712 - Sundry receipts 35,700 30,417Totalincome 1,899,618 1,206,711

Expenditure Printing and miscellaneous expenses for courses and examinations 149,709 104,657 FSDF funding - claims 18,667 - Salaries and staff expenses 11 898,252 778,843 Standards, Accreditation and Certification expenses 12 - 482,036 Office rental 116,899 87,674 Depreciation of plant and equipment 5 31,211 31,096 Professional fees 16,609 24,452 Electricity, telephone and postages 17,869 19,043 Data processing 11,655 8,882 Repairs and maintenance 2,845 5,724 Printing, stationery and periodicals 3,704 6,039 Audit fee 7,500 7,000 Rental of copiers 2,520 2,520 Fair value change on investments - 62,974 Other administrative expenses 41,658 39,913Totalexpenditure 1,319,098 1,660,853

Excess(Deficit)ofincomeoverexpenditurefortheyear 580,520 (454,142)


35

statement of changes in members’ fundsYear ended December 31, 2006

Incomeand expenditure account $

Balance at January 1, 2005 24,351,578

Effect of adoption of FRS 39 801,250

As restated at January 1, 2005 25,152,828

Deficit of income over expenditure for the year (454,142)

Balance at December 31, 2005 24,698,686

Excess of income over expenditure for the year 580,520

Balance at December 31, 2006 25,279,206


Annual Report 2006

36

cash flow statementYear ended December 31, 2006

Note 2006 2005 $ $

Operatingactivities Excess (Deficit) of income over expenditure 580,520 (454,142) Adjustments for: Fair value change on investments (650,712) 62,974 Depreciation 31,211 31,096 Interest income (111,101) (64,358) Operating loss before working capital changes (150,082) (424,430)

Inventories 5,625 765 Accrued members’ subscriptions - 2,073 Accounts receivables (421) 18,981 Other receivables and prepayments (22,419) 65,966 Payables (67,005) 64,377 Courses and examinations fees received in advance 18,720 (25,900) Cash used in operations (215,582) (298,168)

Interest received 72,677 56,470Net cash used in operating activities (142,905) (241,698)

Investingactivity Purchase of plant and equipment (343) -

Financingactivities Contributions by members 5,500 8,000 Refund of contributions to members (26,500) (13,000) Interest earned and credited to operating grant 9,853 7,970Net cash (used in) from financing activities (11,147) 2,970

Decrease in cash and cash equivalents (154,395) (238,728)Cash and cash equivalents at beginning of year 5,676,705 5,915,433Cashandcashequivalentsatendofyear 14 5,522,310 5,676,705



37

These notes form an integral part of and should be read in conjunction with the accompanying accounts. The accounts are expressed in Singapore dollars, which is also the functional currency of the Institute.

1 GENERAL

The Institute (Registration No. 197402045E) is incorporated in the Republic of Singapore as a company limited by guarantee with its registered office and principal place of business at 10 Shenton Way #13-07/08, MAS Building, Singapore 079117. Each member’s liability is limited to $1,000.

The principal activities of the Institute are the organization and conduct of appropriate activities and services to promote continuous learning and the highest standards of workforce competency across the financial services sector. The Institute acts as the central executive arm of a collaborative network, known as the Financial Network for Excellence in Training (or f-NExT), and works closely with the financial institutions, industry associations and bodies, financial training providers and relevant government agencies. This encompasses administering part of the Capital Markets and Financial Advisory Services (CMFAS) examination series on behalf of the Monetary Authority of Singapore and the provision of Continuing Education Programmes for Trading Representatives (CEPTR) courses. The Institute is also the national accreditation and certification agency for financial industry competency under the Financial Industry Competency Standards (FICS) framework.

The Institute administers the Financial Sector Development Fund (FSDF)’s FICS funding scheme, introduced on June 12, 2006 to support training fees for FICS-accredited programmes, on behalf of the Monetary Authority of Singapore. The Institute is reimbursed on a quarterly basis for amounts it disburses under the scheme.

The accounts of the Institute for the year ended December 31, 2006 were authorised for issue by the Council on May 2, 2007.

2 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

BASIS OF ACCOUNTING - The accounts are prepared in accordance with the historical cost convention, except as disclosed in the accounting policies below, and are drawn up in accordance with the provisions of the Singapore Companies Act and Singapore Financial Reporting Standards (“FRS”).

In the current financial year, the Institute has adopted all the new and revised FRSs and Interpretations of FRS (“INT FRS”) issued by the Council on Corporate Disclosure and Governance that are relevant to its operations and effective for annual periods beginning on or after January 1, 2006. The adoption of these new/revised FRSs and INT FRSs does not result in changes to the Institute’s accounting policies and has no material effect on the financial statements.

notes to accountsDecember 31, 2006

Annual Report 2006

38

At the date of authorisation of these accounts, the following FRSs, INT FRSs and amendments to FRS were issued but not effective:

FRS 40 - Investment Property FRS 107 - Financial Instruments: Disclosures FRS 108 - Operating Segments INT FRS 107 - Applying the Restatement Approach under the FRS 29 Financial Reporting in Hyperinflationary Economies INT FRS 108 - Scope of FRS 102 INT FRS 109 - Reassessment of Embedded Derivatives INT FRS 110 - Interim Financial Reporting and Impairment INT FRS 111 - FRS 102 - Group and Treasury Share Transactions INT FRS 112 - Service Concession Arrangements

Amendments to FRS 1 Presentation of Financial Statements on Capital Disclosures. Consequential amendments were also made to various standards as a result of these new/revised standards.

The application of FRS 107 and the consequential amendments to other FRS will not affect any of the amounts recognised in the financial statements, but will change the disclosures presently made in relation to the Institute’s financial instruments and the objectives, policies and processes for managing capital.

Other than FRS 107, the Institute’s Council anticipates that the adoption of the above FRS and INT FRS in future periods will have no material impact on the financial statements of the Institute in the period of their initial adoption.

FINANCIAL INSTRUMENTS - Financial assets and financial liabilities are recognised on the Institute’s balance sheet when the Institute becomes a party to the contractual provisions of the instrument.

Financialassets

Investments are recognised and de-recognised on a trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as at fair value through profit or loss which are initially measured at fair value.

Other financial assets are classified into the following specified categories: financial assets “at fair value through profit or loss”, “held-to-maturity investments”, “available-for-sale” financial assets and “loans and receivables”. The classification depends on the nature and purpose of financial assets and is determined at the time of initial recognition.


39

Effectiveinterestmethod

The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period. Income is recognised on an effective interest rate basis for debt instruments other than those financial instruments “at fair value through profit or loss”.

Accountreceivables

Account receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in the income and expenditure statement when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

Investments

Investments are classified as financial assets at fair value through income and expenditure and are measured at subsequent reporting dates at fair value. Gains and losses arising from changes in fair value are included in income and expenditure for the period.

Financialliabilitiesandequityinstruments

Classificationasdebtorequity

Financial liabilities and equity instruments issued by the Institute are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equityinstruments

An equity instrument is any contract that evidences a residual interest in the assets of the Institute after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Annual Report 2006

40

Payables

Payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, using the effective interest rate method.

The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate, a shorter period.

Derivativefinancialinstruments

The Institute’s investment activities expose it to the financial risks of changes in foreign exchange rates and interest rates.

The Institute uses derivative financial instruments (primarily foreign currency forward contracts) to manage its risks associated with its investments. The Institute does not use derivative financial instruments for speculative purposes.

Derivative financial instruments are initially measured at fair value on the contract date, and are remeasured to fair value at subsequent reporting dates. Changes in the fair value of derivative financial instruments are recognised in income and expenditure as they arise.

PLANT AND EQUIPMENT - Plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses where the recoverable amount of the asset is estimated to be lower than its carrying amount.

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using the straight-line method, on the following bases:

Furniture and fittings - 5 years Computers and equipment - 3 to 5 years Renovation - 3 years

Fully depreciated assets still in use are retained in the accounts.

The gain or loss arising on disposal or retirement of an item of plant and equipment is determined as the difference between the sales proceeds and the carrying amounts of the asset and is recognised in the income and expenditure statement.

INVENTORIES - Inventories consisting of books held for sale are stated at the lower of cost (first-in, first-out) and net realisable value.


41

RETIREMENT BENEFIT COSTS - Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. Payments made to state-managed retirement benefit schemes, such as the Singapore Central Provident Fund, are dealt with as payments to defined contribution plans where the Institute’s obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan.

EMPLOYEE LEAVE ENTITLEMENT - Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date.

PROVISIONS - Provisions are recognised when the Institute has a present obligation as a result of a past event, it is probable that the Institute will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

OPERATING GRANT - Grant received to meet the operating expenses incurred for a specific training programme is recognised as income over a period to match with the related expenses.

INCOME RECOGNITION - Fees from courses and examinations are recognised when the courses or examinations are completed.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset’s net carrying amount.

Income from sale of publications is recognised when significant risks and rewards of ownership are transferred to the buyer and the amount of income and the costs of the transaction can be measured reliably. All other income is recognised on an accrual basis.

FOREIGN CURRENCY TRANSACTIONS - Transactions in currencies other than the Singapore dollar (the Institute’s functional currency), are recorded at the rates of exchange prevailing on the date of the transaction. At each balance sheet date, monetary items denominated in foreign currencies are re-translated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are re-translated at the rates prevailing on the rate when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated.

Annual Report 2006

42

Exchange differences arising on the settlement of monetary items, and on re-translation of monetary items are included in income and expenditure for the period. Exchange differences arising on the re-translation of non-monetary items carried at fair value are included in income and expenditure for the period.

INCOME TAX - The Institute was granted “Charitable Organisation” status on March 24, 1993 and is exempted from the payment of income tax with effect from Year of Assessment 1994 subject to compliance with the provisions of Section 13M(2)(b) of the Income Tax Act.

CASH AND CASH EQUIVALENTS - Cash and cash equivalents comprise cash on hand and demand deposits, bank overdrafts, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

3 CRITICALACCOUNTINGJUDGEMENTSAND KEYSOURCESOFESTIMATIONUNCERTAINTY

CriticaljudgementsinapplyingtheInstitute’saccountingpolicies

In the application of the Institute’s accounting policies, which are described in Note 2, the Council is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Keysourcesofestimationuncertainty

The Institute has not made any key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.


43

4 FINANCIALRISKMANAGEMENT

The Institute has adopted risk management policies that seek to mitigate its exposure to financial risks in a cost-effective manner.

i) Foreignexchangerisk

Foreign exchange risk arises from a change in foreign currency exchange rate which is expected to have an adverse effect on the Institute.

The Institute faces minimal foreign currency risk as its assets and liabilities are denominated primarily in Singapore dollars.

The Institute enters into foreign exchange derivatives to manage the foreign exchange risk when the need arises.

ii) Interestraterisk

All the financial assets and liabilities at year end bear no interest rate risk except for cash and fixed deposits which are short term in nature. The average interest rate on cash and fixed deposits for the financial year ranges from 1.60% to 3.45% (2005 : 0.63% to 1.70%) per annum.

iii) Creditrisk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a loss to the Institute. The Institute has adopted the policy of dealing only with creditworthy counterparties as a means of mitigating the risk of financial losses from defaults.

The Institute does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics.

The carrying amounts of financial assets recorded in the accounts represent the Institute’s maximum exposure to credit risk.

iv) Fairvalueoffinancialassetsandfinancialliabilities

The carrying values of financial assets and financial liabilities reported in the statement of fund balances, assets and liabilities approximate their fair values due to their relatively short maturities except for investments whose fair values are disclosed in Note 6 to the financial statements.

Annual Report 2006

44

5 PLANTANDEQUIPMENT

Furniture Computers and fittings and equipment Renovation Total $ $ $ $

Cost: At January 1, 2005 and at December 31, 2005 1,163,186 820,562 147,675 2,131,423 Additions - 343 - 343 At December 31, 2006 1,163,186 820,905 147,675 2,131,766

Accumulated depreciation: At January 1, 2005 1,161,268 764,172 143,007 2,068,447 Depreciation 568 28,194 2,334 31,096 At December 31, 2005 1,161,836 792,366 145,341 2,099,543 Depreciation 568 28,309 2,334 31,211 At December 31, 2006 1,162,404 820,675 147,675 2,130,754

Carrying amount: At December 31, 2006 782 230 - 1,012

At December 31, 2005 1,350 28,196 2,334 31,880

6 INVESTMENTS

Investments comprise funds placed with an investment manager for discretionary management.

At the balance sheet date, the composition of the funds under management and their indicative fair values are as follows:

2006 2005 Assets Assets $ $

Cash and cash equivalents 4,966,534 758,172 Quoted fixed income investments 6,390,206 7,191,795 Quoted unit trust 9,807,765 12,672,359 Forward foreign exchange contracts 224,483 115,950 Total 21,388,988 20,738,276


45

The Institute’s investments excluding forward foreign exchange contracts (Note 15) that are not denominated in the functional currency are as follows:

2006 2005 $ $

Denominated in:

United States dollars 2,681,768 3,141,940 Hong Kong dollars 7,125,997 9,530,419

During the current financial year, a management fee of $52,810 (2005 : $38,379) was paid to the investment manager. A council member of the Institute is a member of the senior management of the group of companies of which the investment manager is a part.

7 OTHERRECEIVABLESANDPREPAYMENTS

These comprise: 2006 2005 $ $

Security deposits 34,678 24,794 Prepaid expenses 12,615 8,264 Interest receivables 50,882 12,458 Other debtors 22,591 14,407 Total 120,766 59,923

The Institute’s other receivables are denominated in the functional currency of the Institute.

8 PAYABLES

These comprise: 2006 2005 $ $

Trade payables 8,705 18,265 Accrued expenses 94,097 151,542 Total 102,802 169,807

Trade payables and accrued expenses principally comprised amounts outstanding for trade purchases and operating expenses.

The Institute’s payables are denominated in the functional currency of the Institute.

Annual Report 2006

46

9 OPERATINGGRANT

In 1990, the Institute received from Nomura Singapore Ltd. (“Nomura”), an operating grant of $1,000,000 to fund an annual training programme on investment management in Singapore for a period of five years. However, Nomura has agreed to allow the Institute to retain the balance in the unused grant which has been placed in fixed deposit for future use by the Institute.

2006 2005 $ $

Balance at the beginning of the year 660,275 652,305 Movements during the year: Interest received on fixed deposit 9,853 7,970 Balance at the end of the year 670,128 660,275

The operating grant is denominated in the functional currency of the Institute.

10 MEMBERS’FUNDINGCONTRIBUTIONS

These represent amounts contributed by members when they were admitted to the Institute. The contributions are refundable to the members when they cease to be members and are considered as financial liabilities of the Institute.

11 SALARIESANDSTAFFEXPENSES

2006 2005 $ $

Costs of defined contribution plans included in salaries and staff expenses 68,998 66,374

Compensationofkeymanagementpersonnel

The remuneration of members of key management during the year was as follows:

2006 2005 $ $

Short-term benefits 166,340 134,567


47

12 STANDARDS,ACCREDITATIONANDCERTIFICATIONEXPENSES

In 2005, the standards, accreditation and certification expenses comprised mainly consultancy fees for the FICS project and were net of amounts of $403,250 and $403,001 being reimbursements from Singapore Workforce Development Agency and the Monetary Authority of Singapore, respectively, for their respective share of the cost of this project.

13 INCOMETAX

Under Section 13M(2)(b) of the Income Tax Act, Cap. 134, the Institute is exempted from income tax in a financial year if it applies at least eighty per cent of its tax adjusted income for that financial year towards the objectives of the Institute by the end of the following financial year.

For the current financial year ended December 31, 2006, the Institute needs to expend approximately $1,137,561 (2005 : $819,142) towards its objectives by December 31, 2007 to enable the Institute to obtain exemption from tax in respect of donation and sums accrued to it in 2006.

14 CASHANDCASHEQUIVALENTS

2006 2005 $ $

Fixed deposits 5,399,006 5,034,975 Cash and bank balances 123,304 641,730 Total 5,522,310 5,676,705

Fixed deposits bear interest at an average rate of 1.81% (2005 : 1.16%) per annum and are for a tenor of approximately 180 days (2005 : 180 days).

The Institute’s fixed deposits, cash and bank balances are denominated in the functional currency of the Institute.

Annual Report 2006

48

15 FINANCIALDERIVATIVECONTRACTS

As at the balance sheet date, the Institute has the following outstanding financial derivative contracts which were transacted to manage its currency exposure:

2006 2005

Forward foreign exchange contract

Notional principal: Sell US$1,600,000 US$1,800,000

Sell HK$35,200,000 HK$43,700,000

Buy S$9,618,155 S$12,473,849

The total gross positive fair value of the outstanding forward foreign exchange contracts is $224,483 (2005 : $115,950) (Note 6).

16 OPERATINGLEASECOMMITMENT

2006 2005 $ $

Minimum lease payments paid under operating lease 119,419 90,194

At the balance sheet date, commitments in respect of operating lease for the rental of office premises and equipment were as follows:

2006 2005 $ $

Within one year 35,398 31,745 In the second to fifth year inclusive 4,650 7,170 40,048 38,915

The Institute’s operating lease payments is negotiated for an average term of 2 years and rentals are fixed for an average of 2 years.


49

17 EVENTAFTERTHEBALANCESHEETDATE

On February 2, 2007, the Institute entered into an operating lease commitment for a period of 3 years commencing on April 1, 2007 for the lease of new office premises at a monthly rental of $26,241.

18 RECLASSIFICATIONANDCOMPARATIVEFIGURES

Certain reclassifications have been made to the prior year’s financial statements to enhance comparability with current year’s financial statements. As a result, certain line items have been amended on the face of the statements of fund balances, assets and liabilities, income and expenditure, changes in members’ funds, and the related notes to the financial statements. Comparative figures have been adjusted to conform with current year’s presentation.

Statementoffundbalances,assetsandliabilities

2005 2005 As currently As previously reported reported Reclassification

$ $ $

Total members’ fund 24,698,686 25,665,533 (966,847) Non-current liabilities - members’ funding contributions 966,847 - 966,847

StatementofIncomeandExpenditure

Fees from courses and examinations (net) - 949,704 (949,704) Fees from courses and examinations 1,054,361 - 1,054,361 Printing and miscellaneous expenses for

courses and examinations (104,657) - (104,657)

Annual Report 2006

50

statement of council members

In the opinion of the Council Members, the accounts set out on pages 33 to 49 are drawn up so as to give a true and fair view of the state of affairs of the Institute as at December 31, 2006 and of the results, changes in members’ funds and cash flows of the Institute for the financial year then ended and at the date of this statement, there are reasonable grounds to believe that the Institute will be able to pay its liabilities as and when they fall due.

ON BEHALF OF THE COUNCIL MEMBERS

Heng Swee KeatChairman

Wee Ee CheongVice-Chairman



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NOTICE IS HEREBY GIVEN that the 32nd Annual General Meeting of The Institute of Banking and Finance (the “Institute”) will be held at the Taurus/Leo Room, Level 1 Marina Mandarin Singapore, 6 Raffles Boulevard, Marina Square, Singapore 039594 on Wednesday, 30th May 2007 at 4.00 p.m. for the purpose of transacting the following ordinary business of the Institute:

AGENDA1. To receive and consider the Council’s Report and Audited Accounts of the Institute for the year ended 31

December 2006 together with the Auditors’ Report thereon.

2. To appoint Messrs Ernst & Young as the Institute’s Auditors in place of the retiring Auditors, Messrs Deloitte & Touche and to authorise the Council Members to fix their remuneration. [See Explanatory Note (i)]

3. To transact such other ordinary business as may be properly transacted at an Annual General Meeting.

BY ORDER OF THE COUNCIL

Jim Lim Kheng HuatSecretary15 May 2007

Explanatory Note:

(i) The Institute has received notice from a member, Messrs United Overseas Bank Limited, nominating Messrs Ernst & Young as the Institute’s Auditors in place of the retiring Auditors, Messrs Deloitte & Touche. Messrs Ernst & Young have expressed their willingness to accept the appointment. This nomination for the appointment will be tabled for members’ approval at this Annual General Meeting.

Note:

1. A Member entitled to attend and vote at the Annual General Meeting (the “Meeting”) is entitled to appoint not more than two proxies to attend and vote on his behalf. A proxy need not be a Member of the Institute.

2. The instrument appointing a proxy, must be deposited at the registered office of the Institute at 10 Shenton Way, #13-07/08 MAS Building Singapore 079117 not less than forty-eight hours (48) before the time appointed for holding the Meeting.

3. A corporation which is a Member of the Institute may, by resolution of its directors, authorise any person to act as its representative at the Meeting of the Institute, and such representative shall be entitled to exercise the same powers on behalf of the corporation which he represents as if he had been an individual member of the Institute.

notice of annual general meeting

Company No.: 197402045EIncorporated in Singapore

Annual Report 2006

52 proxy form


Wename of member

ofregistered address

Singapore

being a member of The Institute of Banking and Finance (the “Institute”) hereby appoint

name of individual

designation

or failing himname of individual

designation

as our proxy to vote for us on our behalf at the 32nd Annual General Meeting of the Institute to be held at the Taurus/Leo Room, Level 1 Marina Mandarin Singapore, 6 Raffles Boulevard, Marina Square, Singapore 039594 on Wednesday, 30th May 2007 at 4.00 pm and at any adjournment thereof.

As witness our hand this day of 2007.

Director

Director / Secretary

An instrument appointing a proxy must be lodged at the Registered Office of the Institute at 10 Shenton Way, #13-07/08 MAS Building, Singapore 079117, not later than 48 hours before the time appointed for holding the annual general meeting or any adjournment thereof.

The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorized in writing. Where the instrument is executed by a corporation, it must be executed either under its common seal or under the hand of its officer or attorney duly authorised.

Secretary to the CouncilJim Lim Kheng Huat

AuditorsDeloitte & ToucheCertified Public Accountants

SolicitorsShook Lin & BokAdvocates and Solicitors

Principal OfficerLoo Siew YeeCEO

CorporateInformation


10 Shenton Way#13-07/08 MAS BuildingSingapore 079117Tel : 65 6220 8566Fax : 65 6224 4947email : [email protected] : www.ibf.org.sg

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