Transcript Document

Training of
Financial Analysts
Job
An analyst will write reports on the companies they are
supposed to cover, trying to describe the businesses and
their opinion of the company's investment potential,
usually from a fundamental analysis standpoint. They
also summarize that report with a rating, such as "buy",
"sell", "market perform", "overweight", "hold", etc.
Financial analysts, also called securities analysts and
investment analysts, work for banks, insurance
companies, mutual and pension funds, securities firms,
and other businesses, helping these companies or their
clients make investment decisions. Financial analysts
employed in Commercial lending perform "balance sheet
analysis," examining the audited financial statements
and corollary data in order to assess lending risks.
Usually, financial analysts study an entire industry,
assessing current trends in business practices, products,
and industry competition. They must keep abreast of
new regulations or policies that may affect the industry,
as well as monitor the economy to determine its effect on
earnings.
Financial analysts use spreadsheet and statistical software
packages to analyze financial data, spot trends, and
develop forecasts.
On the basis of their results, they write reports and make
presentations, usually making recommendations to buy
or sell a particular investment or security.
Senior analysts may actually make the decision to buy or
sell for the company or client if they are the ones
responsible for managing the assets. Other analysts use
the data to measure the financial risks associated with
making a particular investment decision.
Financial analysts in investment banking departments of
securities or banking firms often work in teams, analyzing the
future prospects of companies that want to sell shares to the
public for the first time.
They also ensure that the forms and written materials necessary
for compliance with Securities and Exchange Commission
regulations are accurate and complete.
They may make presentations to prospective investors about the
merits of investing in the new company. Financial analysts
also work in mergers and acquisitions departments, preparing
analyses on the costs and benefits of a proposed merger or
takeover. There are buy-side analysts and sell-side analysts.
Some financial analysts, called ratings analysts (who are often
employees of ratings agencies), evaluate the ability of
companies or governments that issue bonds to repay their
debt. On the basis of their evaluation, a management team
assigns a rating to a company's or government's bonds. Other
financial analysts perform budget, cost, and credit analysis as
part of their responsibilities.
Financial analysis
Financial analysis refers to an assessment of the viability
(життєздатність), stability and profitability (прибутковість) of a
business, sub-business or project.
It is performed by professionals who prepare reports using ratios that
make use of information taken from financial statements and other
reports. These reports are usually presented to top management as
one of their basis in making business decisions. Based on these
reports, management may:
 Continue or discontinue its main operation or part of its business;
 Make or purchase certain materials in the manufacture of its
product;
 Acquire or rent/lease certain machineries and equipments in the
production of its goods;
 Issue stocks or negotiate for a bank loan to increase its working
capital.
 other decisions that allow management to make an informed
selection on various alternatives in the conduct of its business.
Goals
 Financial analysts often assess the firm's:
1. Profitability - its ability to earn income and sustain
growth in both short-term and long-term. A company's
degree of profitability is usually based on the income
statement, which reports on the company's results of
operations;
2. Solvency (кредитоздатність )- its ability to pay its
obligation to debtors and other third parties in the longterm;
3. Liquidity - its ability to maintain positive cash flow, while
satisfying immediate obligations;
Both 2 and 3 are based on the company's balance
sheet, which indicates the financial condition of a
business as of a given point in time.
4. Stability - the firm's ability to remain in business in the
long run, without having to sustain significant losses in
the conduct of its business. Assessing a company's
stability requires the use of both the income statement
and the balance sheet, as well as other financial and
non-financial indicators.
Education
 It is often required for analysts to earn an MBA or a
professional qualification such as Chartered Financial
Analyst designation (CFA) in the United States of
America, or Certified International Investment Analyst
designation (CIIA) in Europe and Asia, to advance
beyond a certain level within a firm. Alternatively,
analysts may earn a Master of Science in Finance
(MSF).
Faculty of Actuaries and
Institute of Actuaries
(UK)
http://www.actuaries.org.uk
What Do Actuaries Do?
An actuary is a business professional who deals with the
financial impact of risk and uncertainty.
Actuaries make financial sense of the future. This expertise
gives the Actuarial Profession an unrivalled appreciation
of financial risk management one of the most
fundamental, but poorly understood, areas of business.
Being skilled mathematicians, actuaries are able to analyze
past events, assess the present risks involved, and
model what could happen in the future. They may then
forecast the long term financial implications of business
decisions, both in terms of likely outcomes and in the
variability of these outcomes.
Where are actuarial skills most in demand? Traditionally,
long term financial institutions have employed actuaries
in large numbers. Insurance companies and pension
funds have revenue flows and payment obligations
stretching many decades into the future.
Now, actuarial skills are being applied to many other areas
of business as well, so members of the profession may
be found in wider areas such as corporate finance, asset
management and major capital projects.
Introduction to the
Education System
There are four stages:
 Core Technical stage
 Core Applications stage
 Specialist Technical stage
 Specialist Applications stage
This is shown
diagrammatically as:
Core Technical Stage
In the Core Technical stage there are nine subjects:









CT1
CT2
CT3
CT4
CT5
CT6
CT7
CT8
CT9
Financial Mathematics
Finance and Financial Reporting
Probability and Mathematical Statistics
Models
Contingencies
Statistical Methods
Economics
Financial Economics
Business Awareness Module
Each of CT1 - CT8 will be examined by one paper of three
hours duration.
CT9 Business Awareness Module involves a 2-day
residential course, with pre-course study and a postcourse test, that has been designed to help people
joining the Actuarial Profession understand:
 the business environment they will be working in,
including the related challenges
 how to tackle business related problems
 their professional responsibilities
 the need to equip themselves for lifelong learning
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 assetliability management. The two papers will be added
together to give a single mark for:
 CA1
Core Applications Concepts
CA11 one paper CA12 one paper -
assets
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 Communications has two questions, each testing
a different type of written communication. The paper is of
three hours duration.
Specialist Technical stage
Students will in future be required to pass two subjects at
the Specialist Technical stage. There are seven
Specialist Technical subjects:







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 stage
There are seven Specialist Applications subjects. Students
required to pass one subject chosen from:







SA0
SA1
SA2
SA3
SA4
SA5
SA6
Research Dissertation Specialist Applications
Health and Care Specialist Applications
Life Insurance Specialist Applications
General Insurance Specialist Applications
Pensions and other Benefits Specialist Applications
Finance Specialist Applications
Investment Specialist Applications
Each of SA1–SA6 are tested by an examination paper of
three hours duration.
UK Practice Modules
A UK Practice Module has to be taken by students working
in the UK. This is tested by multiple choice examinations
each of one and a half hours duration.
The first part is common to all practice areas and tests the
generic principles of UK Financial Services.
The second part tests UK business practice, regulation,
legislation (законодавча діяльність) and professional
guidance notes in specific areas.
Qualifications
1. Class of Associate
Students who have completed all but the Specialist
Technical and Specialist Applications subjects and who
have completed the appropriate professionalism course
and meet the work-based skills requirement, may apply
to transfer to the class of Associate member.
Students do not automatically transfer to Associate prior
to taking the Specialist Technical and Specialist
Applications subjects, but can apply to transfer to the
class of Associate if they no longer wish to continue
taking examinations.
2. Class of Fellow
Students will be admitted to the Fellowship on having
successfully completed or passed the Core Technical
subjects, Core Applications subjects, two of the
Specialist Technical subjects, one of the Specialist
Applications subjects and having met the work-based
skills requirement.
An applicant for admission to the Institute Class of
Fellow must have attained the age of 23 years.
3. Diploma in Actuarial Techniques
The joint Diploma in Actuarial Techniques was
introduced in April 1996. The Diploma in Actuarial
Techniques will be sent directly to students completing
all of the Core Technical stage subjects: CT1, CT2, CT3,
CT4, CT5, CT6, CT7, CT8 and CT9.
4. Certificate in Finance and Investment
The Certificate in Finance and Investment is a joint
certificate and will be sent to all students of the Faculty
and Institute of Actuaries who complete or are exempted
from CT1, CT2, CT4, CT7, CT8, CT9 and CA1 .
Chartered Financial Analyst
Institute (USA)
http://www.cfainstitute.org/
Chartered Financial Analyst (CFA) is a professional
designation offered by the CFA Institute to financial
analysts who complete a series of three examinations
and work for at least four years in the investment
decision making process. CFA charterholders are also
obliged to adhere to a strict Code of Ethics and
Standards (a commitment that, above all else, put the
interests of clients first) governing their professional
conduct.
The CFA designation is a qualification for people engaged
in the financial and investment sector.
From 1963 (when the CFA designation was first used) to
2006, approximately 69,600 people from 126 different
countries have been awarded the right to use the CFA
designation. As of 2006, more than 116,000 more people
are currently enrolled to take one of the examinations.
The CFA program began in the United States, but has
become increasingly international with many people
becoming charterholders across Europe, Asia and
Australasia. By 2003 fewer than half the candidates in
the CFA program were based in the US and Canada,
with most of the other candidates based in Asia or
Europe. India and China have shown some of the
highest growth from 2005-2006 with increases of 25%
and 53% respectively in the total number of
charterholders.
The basic requirements for participation in the CFA
program include holding or being in the final year of (a)
four-year university degree (or international equivalent)
or having four years of qualified, professional work
experience in an investment decision-making process.
The program focuses on portfolio management and
financial analysis, and provides a generalist knowledge
of other areas of finance.
The CFA exam
Candidates generally take one exam per year over three
years and are written at a postgraduate level for financial
professionals. Exams are challenging, with only 39%
passing the Level I exam in December 2006. The June
2006 Level I Exam resulted in a worldwide pass rate of
40%; Europe achieved the highest pass rate for that
exam with 57%. The Level II and III passing rates for
2006 were 48% and 76% respectively.
 The Level I study program emphasizes tools and inputs
and includes an introduction to asset valuation and
portfolio management techniques.
 The Level II study program emphasizes asset valuation
and includes applications of the tools and inputs
(including economics, financial statement analysis
(аналіз фінансової звітності), and quantitative
methods) in asset valuation.
 The Level III study program emphasizes portfolio
management and includes strategies for applying the
tools, inputs, and asset valuation models in managing
equity, fixed income, and derivative investments for
individuals and institutions.
All three exams are administered on paper, on a single
day; the Level I exam is administered twice a year
(usually the first weekend of June and December). The
Level II and III exams are administered once a year,
usually the first weekend of June. Each exam consists of
two three-hour sessions. Both Level I and Level II are
entirely multiple choice, while Level III consists of a
session of short-answer questions and a session that is
multiple choice. On the multiple-choice sections, there is
no penalty for wrong answers.
Candidates who have taken the exam receive a score
report that is intended to be fairly unspecific: there is no
overall score for the test, only a Pass/Fail result. For
each category of questions, each test-taker is given a
broad range within which his or her performance falls:
below 50%, between 50% and 70%, and above 70%.
There is no pre-set passing grade for the exams. The
threshold for passing is 70% of the average of the top
10% of all scores. The wide variation in pass rates from
year to year may partially stem from this calculation.
The CFA curriculum
The curriculum for the CFA program includes:
 Ethics and Professional Standards
 Quantitative Methods (such as the time value of money,





and statistical inference)
Economics
Financial Statement Analysis
Corporate Finance
Analysis of Investments (stocks, bonds, derivatives,
venture capital, real estate, etc.)
Portfolio Management and Analysis (asset allocation,
portfolio risk, performance measurement, etc.)
The ethics section is primarily concerned with compliance
and reporting rules when managing an investor's money
or when issuing research reports, although there are
some rules which pertain to more general professional
behavior (such as prohibitions against plagiarism). There
are also rules that specifically relate to the proper use of
the designation for charterholders and candidates. All of
these rules are delineated in the 'Code and Standards'.
The section on quantitative analysis is dominated by
statistics and time series analysis. Other financial
fundamentals such as the time value of money are also
addressed. The statistics topics are fairly broad, but the
main focuses are risk analysis, hypothesis testing and
regression analysis. For the test, only two types of
calculator are allowed (the Hewlett Packard 12C and the
Texas Instruments BA II Plus). The test also features
other quantitative topics, but these are covered in other
sections. For example, calculating depreciation of assets
is a part of financial statement analysis (accounting), and
determining currency arbitrage is a part of international
economics.
Both micro and macro economics are covered. There are
sections for international economics, mainly related to
currency conversions and how they are affected by
international interest rates and inflation.
The accounting section is heavily tested at Levels I and II,
but is not a significant part of Level III. It is divided into
financial statements analysis and corporate finance.
Financial statement analysis considers the statement of
cash flows, the balance sheet, and the income
statement. Each of these documents gives a distinct
view into the state and operations of a company.
Corporate finance uses these views of the company to
make decisions about projects, deciding how they will
impact the company.
The section on security analysis is divided by the types of
security. There is a general section on global markets,
sections on equity (stocks), fixed income (bonds), and
derivatives (futures, forwards, options and swaps). The
first levels of the test require familiarity with these
instruments, then the focus develops into correctly
valuing them, and how to properly use them.
The final section is portfolio management. This section
increases in importance with each of the three levels.
Portfolio management is an analysis of the process of
managing money. It depends heavily on all of the other
topics. When managing money for others, ethics is
obviously important. This section deals with how the
investors' needs are met by the portfolio manager.
Modern portfolio theory is also tested: the efficient
frontier, Capital asset pricing model, etc.
Fee Schedule
To enter the CFA Program, you must pay:
 An initial, one-time only registration fee
 An enrollment fee for your first exam (Level I)
Fees for New Candidates
Payment deadlines:
December 2007: 15 Mar 07
Registration Fee
(one-time)
US$390
Exam Fee: Level I
(enrollment)
US$370
Total Cost to Enter
the CFA Program: US$760
15 Aug 07
17 Sep 07
US$390
US$465
US$455
US$690
US$845
US$1155
Association of Certified
International Investment Analysts
http://web.aciia.org/
Certified International Investment Analyst (CIIA) is a
designation offered by the Association of Certified
International Investment Analysts (ACIIA) to professional
financial analysts; candidates may be financial analysts,
portfolio managers and / or investment advisors.
To be awarded the CIIA, candidates must pass two
"Common
Knowledge"
Exams
and
a
third
National/Regional Exam (examining knowledge of
specific markets), and have 3 years relevant experience.
The exams are taken twice per year and are written at a
postgraduate level.
The exams are implemented by 27 national Associations of
Financial Analysts, or Federations of Financial Analysts
Associations. Federations of Analysts Associations that
are members of ACIIA, are inter alia the Asia-pacific
Securities Analysts Federation (ASAF) European
Federation of Financial Analysts Societies (EFFAS) and
Brazil / Latin America Associação Brasileira dos
Analistas do Mercado de Capitais (ABAMEC).
The Common Knowledge Exams are divided into two levels - the
Foundation and Final Level. Examined are essential skills and
knowledge required for professionals working in investment markets
common in all countries.
 Foundation Level
Exam Format: multiple choice, calculation, discursive and short
essay questions
Exam 1
3.10hrs
Equity valuation and analysis
Financial accounting and statement analysis
Corporate Finance
Exam 2
2.40hrs
Fixed income valuation and analysis
Economics
Exam 3
3.10hrs
Derivative valuation and analysis
Portfolio management
Graduates who already have relevant qualifications may be exempt
from the Foundation Level exams. Contact your local
national/regional society for further details.
 Final Level
Exam Format: full and mini-case study questions and in-depth
essay.
Exam 1
3hrs
Corporate finance
Economics
Financial accounting and statement analysis
Equity valuation and analysis
Exam 2
3hrs
Fixed income valuation and analysis
Derivative valuation and analysis
Portfolio management
National/Regional Exam
Exam 1
3hrs
Regulation
Ethics
Financial statements analysis
Market structures and instruments
 Multilingual Exams
The Common Knowledge Exams can be conducted in
Chinese, English, French, German, Italian, Japanese,
Korean, Polish, Portuguese, Russian and Spanish. Other
languages may be made available in the near future,
please check with your local national/regional society.
 Recommended study time:
The recommended total hours of study necessary for the
whole Common Knowledge Exams is a minimum of 500
hours. These hours include time spent working on
exercises, case studies and private study.
American Academy of Financial
Management
http://www.financialanalyst.org
The AAFM was founded in 1996, via a merger between the
American Academy of Financial Management & Analysts
(AAFMA) and the Founders Advisory Committee of the
Original Tax and Estate Planning Law Review. The
AAFM is a professional association governed by a Board
of Standards and a membership code of ethics and
standards of practice. The AAFM operates in most
countries as a ‘society’ or non-profit association, with the
members of the local or regional chapter making up the
‘owners’ of the society. At all times the AAFM and its
members are accountable to the community and to the
board of standards.
The American Academy of Financial Management
maintains more than 20 designations in the finance
arena, with highly specialized role-based post-nominal
awards. Members must either have come through one of
the AAFM Accredited University Finance programs (such
as Universities within AACSB - The Association to
Advance Collegiate Schools of Business, ACBSP – The
Association of Collegiate Business Schools and
Programs, etc), through an Executive Training Program,
or in some rare cases through grandfathering by way of
board/peer review.
AAFM is best recognized for its designations being in
alliance with the AACSB International Accreditation
Agency, the ACBSP Accreditation Agency, and listed
and disclosed with various authorities such as: Investor
Education, Department of Labor, or National Association
of Securities Dealers (NASD). AAFM Designations are
available as executive certification courses for accredited
degree holders in: North and South America as well as
Asia, India, and the Middle East.
 Chartered Wealth Manager
The CWM is only available for wealth managers with an
accredited masters degree, law degree, CPA, PhD or
specialized executive training.
 Chartered Asset Manager
The CAM is only available for asset managers with an
accredited masters degree, law degree, MBA, CPA, PhD
or specialized executive training.
 Chartered Portfolio Manager
The CPM is only available for portfolio managers with an
accredited masters degree, MBA, law degree, CPA, PhD
or specialized executive training.
 Master Financial Professional
The MFP is only available for financial planning
managers with an AACSB or ACBSP accredited degree,
ABA (American Bar Association) law degree, MBA, CPA,
PhD or specialized executive training.
The AAFM has mutual legal recognition agreements with
over 560 accredited and registered business schools to
convey this credential to registered graduates of these
top institutions.
 Certified Market Analyst
The Certified Market Analyst or Chartered Market
Analyst credential is only available for financial analysts
and market analysts with an earned & accredited
masters degree, law degree, MBA, CPA, PhD or
specialized AAFM executive training. The CMA has a
focus on technical and fundamental analysis.
Requirements are very high which include: graduate
education, ethics, continuing education, and vast
experience with research, publications and investments.
 Chartered Trust and Estate Planner
The CTEP is only available for estates and trust
managers with an accredited degree, law degree, MBA,
CPA, PhD or specialized executive training. Trust and
estates experience and knowledge is required.
 Registered Financial Specialist
The RFS is only available for financial planning
managers with an accredited degree, MBA, law degree,
CPA, PhD or specialized executive training. Criteria for
this award includes ethics, continuing education, testing,
education, and degree.
 The AAFM has always required a college degree to be a
candidate for certification. AAFM members are mainly
from AACSB or ACBSP government recognized
business schools. Thus, a college graduate would have
already successfully completed 30 or more college level
courses and exams along with ethics and
professionalism courses to earn a degree to then be
eligible for professional certification.
The Association of
Corporate Treasurers
(UK)
http://www.treasurers.org
The Association of Corporate Treasurers (ACT) is the
international body for finance professionals working in
treasury, risk and corporate finance. Through the ACT
we come together as practitioners, technical experts and
educators in a range of disciplines that underpin the
financial security and prosperity of an organisation.
The ACT defines and promotes best practice in treasury
and makes representations to government, regulators
and standard setters.
Treasury is an integral element of the financial
management of a business and as the environment in
which companies operate evolves, the role of corporate
treasury also changes.
The ACT is the only UK based professional body to offer
specialist qualifications in treasury, risk and corporate
finance. The membership qualifications, recognised as
the global benchmark for treasury education, ensure that
the ACT represents a highly qualified community of
professionals.
The ACT Qualifications
Professional membership of the ACT may be obtained at
two levels:
 Associateship
 Membership
The Associateship qualification is set at professional
entry level and gives a thorough overview of the
fundamentals of treasury management. These concepts
are developed further in the Membership examinations.
The ACT Membership qualifications:
 AMCT – Diploma in Treasury, Risk and Corporate
Finance
 MCT – Advanced Diploma in Treasury, Risk and
Corporate Finance, and the Certificate qualifications.
AMCT Syllabus
There are two levels of papers in the AMCT syllabus –
Foundation Papers, which are core to the understanding
of treasury and accountancy principles; and Associate
Papers, which provide the building blocks for the modern
treasurer, examining and analysing the principles of
corporate treasury.
An AMCT student’s study is made up of seven papers, four
Foundation Papers and three chosen Associate Papers.
Foundation Papers:
 Financial & Management Accounting
 Economics & Statistical Analysis
 Corporate Taxation
 Business Law
Associate Papers




Liquidity Management
Risk Management
Corporate Finance & Funding
Corporate Finance & Funding FastTrack
 International Cash Management (Certificate)
 Financial Mathematics and Modelling
(Certificate)
 Risk Management for Pensions (Certificate)
Certificates
Certificate papers may be taken independently of the
AMCT qualification and are recognised as qualifications
in their own right. There are currently three Certificate
papers:
 International Cash Management (CertICM)
 Financial Mathematics and Modelling (CertFMM)
 Risk Management for Pensions (CertRMP)
The Association of Corporate Treasurers' Certificate in
Financial Mathematics and Modelling (CertFMM) is
designed to cover three critical areas of financial risk
mathematics: money market calculations, options and
portfolio management.
International Cash Management explores the instruments,
infrastructure and techniques of managing cash from the
basics of payments and collections to foreign exchange
swaps and outrights. It explains the links with working
capital management together with the effects of legal,
tax, technology and regulatory issues on cash
management and banking relationships.
By completing this paper you will:
 Be able to demonstrate a detailed understanding of




international cash management from both a corporate
and banking perspective.
Understand the wider context in which cash
management fits within corporate treasury and
international banking.
Understand global money transmission techniques and
the details of major clearing systems.
Be able to add real value when organising and
negotiating
international
cash
management
arrangements.
Be equipped with a practical toolkit for practical
international cash management, including the use of
instruments and strategies for optimising cash
management efficiency.
The Association of Corporate Treasurers' Certificate in
Financial Mathematics and Modelling (CertFMM) is
designed to cover three critical areas of financial risk
mathematics: money market calculations, options and
portfolio management.
Financial Mathematics & Modelling provides the tools to
calculate, understand and interpret interest rate and
currency risk from a mathematical viewpoint and
analyses how these can be applied to practical
situations. Techniques such as duration, convexity and
portfolio analysis, including the trade-off between risk
and return are discussed. The course explores option
theory and the powerful ideas behind option pricing. It
provides an insight into Value at Risk measures and its
potential value and limitations as a useful risk measure.
This Certificate is highly practical and will be taught
using Excel.
By completing this paper you will:
 Be able to calculate prices and yields for a variety of






financial instruments.
Be able to explain and analyse interest rate sensitivity.
Be able to demonstrate how derivatives are used in
financial risk management
Be able to price interest rate and currency derivatives.
Understand the concepts behind option pricing theory.
Be able to explain how portfolios can be measured in
terms of risk and the limitations of those measures.
Be able to describe Value at Risk and how it is used.
The Association of Corporate Treasurers' Certificate Paper
in Risk Management for Pensions (CertRMP) is
designed to enable you to understand, analyse and
manage the risks associated with company pension
funds.
CertRMP equips finance professionals with a fundamental
understanding of the legislative and regulatory
framework surrounding pensions, including the role of
trustees, risk management implications and associated
governance issues. By illustrating how analysts and
shareholders view the risk profile of a company on the
basis of the existence of a pension fund, it provides the
skills to manage and understand this risk. The Certificate
explores the impact of the pension fund on the cost of
capital, enabling the finance professional to manage the
financial assets of the business and address funding
requirements.
On completion of this paper you will be able to:
 Understand key aspects of the pensions framework and





provision in the UK and compare these with other key
jurisdictions
Compare and contrast the management of various types
of company pension
Explain the roles and responsibilities of key persons
associated with the management of a pension scheme
Understand and describe the financial risks associated
with pension funds for both Fund and Company
Identify and assess your company’s key pension risk
exposures and strategies to manage them
Discuss the constraints/inhibitors to actions or decisions
sought for the purposes of risk management
 Recommended study time – 100-120 hours
 Examination time – 3 hours
 The pass mark for each paper is normally 50%