Outline of ACIIA® and CIIA® - Certified International Investment Analyst- February 2005
ACIIA® Association of Certified International Investment Analysts 2
Challenges of Globalisation Globalisation introduces: -interdependencies
-complexity-volatility
Implications for Finance Industry: -knowledge based
-adding value-reducing risk
Investment Analysts: -markets/ customers-global knowledge
-local expertise
ACIIA® Association of Certified International Investment Analysts 3
Global Skills
Local Knowledge
Culture Language
ACIIA® Association of Certified International Investment Analysts 4
Knowledge
Ethics
Language & Culture
- ACIIA principles of ethical conduct now open to the public for comments - compliance with national legislation - compliance with ICIA code of ethics
- CKB ® (Common Knowledge Base)
- specific local content
- local legislation and regulation
- It’s a must ! - customer oriented- ensuring labour efficiency
ACIIA® Association of Certified International Investment Analysts 5
What is the ACIIA® ?
• Non-profit organization • Established in June 2000, based in Switzerland• Awards an internationally recognised qualification
for financial market experts: the CIIA®
ACIIA® Association of Certified International Investment Analysts 6
ACIIA®’s Role
• To establish /organise and supervise the professional examinations of the CIIA®
• To award the CIIA® qualification
• To offer a truly global qualification for investment professionals
• To support the independence of national societies
ACIIA® Association of Certified International Investment Analysts 7
ACIIA®’s Objectives
• To create a forum for the interchange of ideas and information in the finance and investment field
• To assist a world-wide network of capital market experts
• To promote the interests of the investment community
• To promote ethical behaviour in the industry
ACIIA® Association of Certified International Investment Analysts 8
ACIIA®’s Background
Globalization of investment markets and the rapidly changing face of the global economy
caused the world’s key financial institutions to integrate their operations
demands an internationally recognised, high level qualification.
ACIIA® Association of Certified International Investment Analysts 9
ACIIA®’s Background
CIIA®s have
• the skills
• the flexibility
• the ethical behavior to work in any international finance center.
ACIIA® Association of Certified International Investment Analysts 10
ACIIA®’s Philosophy
• A world-wide democratic co-operation of national societies as competent partners.
• Respects sovereignty and responsibility of national societies
• Respects individual cultures and languages
ACIIA® Association of Certified International Investment Analysts 11
ACIIA®’s Philosophy
• Recognises that many countries already have excellent national qualification programs
• Draws on this existing pool of expertise
ACIIA® Association of Certified International Investment Analysts 12
ACIIA®’s Philosophy
• Extend, not replace, the existing national programs, with a global qualification that is recognised world-wide.
• CIIA® holders remain independent as members of their national society.
• Ethics are monitored by the national society.
ACIIA® Association of Certified International Investment Analysts 13
ACIIA® Organizational Structure
General Meeting
IEC- International Examination Committee®
CIE-Center for International Examinations
Council
* PMC – Promotion and Marketing Committee
* Task Force for ACIIA Code of Ethics
ACIIA® Association of Certified International Investment Analysts 14
Council Members
1. Mr. Kiyoto Hagiwara, Chairman (SAAJ Japan)
2. Mr. Jean-Francois Balmary, Deputy Chairman (SFAF France)
3. Mr. Gary Cheung (ASAF Asia / HKSI Hong Kong)
4. Dr. Rene Willemsen (EFFAS Europe)
5. Mr. Ronaldo Nogueira (APIMEC Brazil)
6. Dr. Lin Yixiang (SAC/SAAC China)
7. Mr. Fritz H Rau (DVFA Germany)
8. Mr. Sanjay Ramchandani (CPMR/ICFAI India)
9. Mr. Giampaolo Trasi (AIAF Italy)
10.Mr. Gonzalo Milans del Bosch (IEAF Spain)
11.Dr. Jean-Claude Dufournet (SFAA Switzerland)
ACIIA® Association of Certified International Investment Analysts 15
Membership Categories
• Regular Members - Federation Members - Contracting Members - Funding Members• Associate Members• Supporting Members
ACIIA® Association of Certified International Investment Analysts 16
Membership Categories
• Federation Members (2+1) - ASAF - EFFAS - APIMEC• Contracting Members (13) Austria, Belgium, France, Germany, Hong Kong, India, Italy, Japan, Luxembourg, Netherlands, Russia, Spain, Switzerland
ACIIA® Association of Certified International Investment Analysts 17
Membership Categories
• Funding Members (7) China, France, Germany, Italy, Japan, Spain, Switzerland • Associate Members (8) Hungary, Iran, Korea, Morocco, Poland, Sweden, Thailand, Ukraine• Supporting Members (0)
ACIIA® Association of Certified International Investment Analysts 18
Membership Rights / Obligations
Fed. M. Cont. M. Fund. M. Asso. M. Supp. M.
-Voting Rights ○ ○ ○ × ×(General Meetings)
-To attend General Meetings ○ ○ ○ △ △-To be Council Members ○ ○ ○ × ×
-To have CIIA candidates × ○ × ○ ○
(National programs have to be accredited by IEC)
-To pay entrance fee/ ○ ○ ○ ○ △
annual fee to ACIIA
-To have to commit × ○ × × × number of exam candidates
-To extend a loan to ACIIA × × ○ × ×
ACIIA® Association of Certified International Investment Analysts 19
Membership Fees to ACIIA
• Entrance fee and annual membership fee are paid to the ACIIA by ACIIA Members.
• ACIIA Members will probably charge CIIA candidates (i) a registration fee, and (ii) an examination fee for one or two exam paper(s), taking into account annual membership fees payable to the ACIIA, management and operational costs, plus a certain margin profit.
• In any case, the level of fees for CIIA candidates will be up to each member society.
ACIIA® Association of Certified International Investment Analysts 20
Entrance Fees to ACIIA• Federation Members CHF7,250• Contracting Members CHF7,250• Funding Members CHF7,250• Associate Members CHF1,160• Supporting Members Not admitted
ACIIA® Association of Certified International Investment Analysts 21
Annual Membership Fees to ACIIA (1)
Refer to the ACIIA “Terms and Conditions of Fee Commitment.”
• Federation / Funding Members : CHF9,790 p.a.
• Contracting Members: (i) As long as the cumulative number of exam units is no more than 500, the annual fee will be (i)CHF 9,945 (CHF 195 x 51 exam papers if the committed number is the minimum ) or (ii) CHF195 x number of exam units for the year, whichever is larger.
ACIIA® Association of Certified International Investment Analysts 22
Annual Membership Fees to ACIIA (2)
If the cumulative number of exam units is more than 500, the annual fees will be calculated, in principle, based upon the following: [P] x [rn] [P] : average price per unit This coverage price will be calculated in accordance with the “fee per unit” table [rn] : number of units (exam papers) for the nth payment of annual membership fees. *Refer to the ACIIA “Terms and Conditions of Fee Commitment.”
ACIIA® Association of Certified International Investment Analysts 23
Total committed/actual number of units for five years
(Committed/actual number of exam papers for five years)
Fee per unit
The 1st level 0-500 CHF195
The 2nd level 501-1,000 CHF175
The 3rd level 1001-1,500 CHF150
The 4th level 1,501-3,000 CHF130
The 5th level 3,001-5,000 CHF110
The 6th level 5,001- CHF90
Annual Membership Fee Fee Per Unit Table
Number of exam papers Annual feeThe 1st year: 300 CHF 58,500 (= 195.0 x 300)The 2nd year: 500 CHF 93,750 (= 187.5 x 500)The 3rd year: 600 CHF 105,000 (= 175.0 x 600)* * Average price per unit: (195 x 500 + 175 x 500 + 150 x 400) ÷1,400 =175.00
Annual fee for the 3rd year: [P] x [rn] = 175.00 x 600 = 105,000
ACIIA® Association of Certified International Investment Analysts 24
Annual Membership Fees to ACIIA
• Associate Members: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
CHF435 CHF870 CHF1,740 CHF3,480 CHF6,960 CHF9,790
• Supporting Members: CHF435
(A harbor will give Associate Members temporary
refuge, and once the storm passes they can return
to their original membership status.)
ACIIA® Association of Certified International Investment Analysts 25
Global Reach
• 23 Member Societies to date
• some 30,000 investment professionals
• aiming at 3,000 - 5,000 graduates annually
ACIIA® Association of Certified International Investment Analysts 26
Candidate Numbers
Since March 2002 more than 2,500 candidates have achieved the designation worldwide
Currently more than 3,300 CIIA® candidatesworld-wide
ACIIA® Association of Certified International Investment Analysts 27
Strengths of CIIA® designation
• Participating societies are able to retain their independence
• The CIIA® is– practical and relevant– globally oriented
• Exams can be taken in a number of languages• The overall qualification also comprises a “local
specific” component
ACIIA® Association of Certified International Investment Analysts 28
CIIA® Examination Structure
• The designation combines a topic-based and levels-based approach, with emphasis on Corporate Finance and Derivatives
• There are two levels of examinations covering all topic areas– Foundation level + National specific – Final level
ACIIA® Association of Certified International Investment Analysts 29
CIIA® Examination Structure
Examination paper structure: • Common Exam hours No. of papers
– Final 6 2– Foundation 9 3
15 5
• National specific 3 118 6
nb: the national specific examination may, if necessary, be more than 3 hours
ACIIA® Association of Certified International Investment Analysts 30
CIIA® Examination Structure
Topic areas • Equity Valuation and Analysis
• Fixed Income Valuation and Analysis
• Derivative Valuation and Analysis
• Economics
• Corporate Finance
• Financial Accounting and Financial Statement Analysis
• Portfolio Management
ACIIA® Association of Certified International Investment Analysts 31
Structure of CIIA®
Topic combinations
• Final Level– Examination I (180min): Equity, Financial
Statement, Economics, Corporate Finance– Examination II (180min): Fixed Income,
Derivatives, Portfolio Management
ACIIA® Association of Certified International Investment Analysts 32
CIIA® Examination Structure
• Foundation Level– Examination I (190min): Equity, Financial
Statements, Corporate Finance– Examination II (160min): Fixed Income,
Economics– Examination III (190 min): Derivatives,
Portfolio Management
ACIIA® Association of Certified International Investment Analysts 33
CIIA® Examination Structure
• National Specific– Regulation, Ethics, Accounting, Market
Structures and Instruments
ACIIA® Association of Certified International Investment Analysts 34
Routes to the CIIA® Qualification
• Route A:– Foundation + Final + National specific
• Route B: – Accredited programme + Final
• Route C (until September 09): – Experienced qualified candidate + Final
(Accredited member societies only)
ACIIA® Association of Certified International Investment Analysts 35
Routes to the CIIA® Qualification
The IEC (International Examination Committee) evaluate national societies’ programs for accreditation by the ACIIA®
Note: Fifteen member society programmes have been accredited to date.
Societies are increasingly integrating their programmes more fully within the CIIA® scheme and adopting Route A.
ACIIA® Association of Certified International Investment Analysts 36
International Examination Committee (IEC)
• Assures the high quality and academic credibility of the CIIA®
• is independent, objective, and dedicated to the CIIA® qualification
• consists of experts from four continents: – international experienced university
professors– expert practitioners with academic activities.
ACIIA® Association of Certified International Investment Analysts 37
International Examination Committee (IEC)
• Is responsible for evaluating if qualification programs of national societies are equivalent to the foundation level of the CIIA®
• Is responsible for the preparation of the CIIA® examination papers
• Supervises the CIIA® examination
ACIIA® Association of Certified International Investment Analysts 38
IEC Members
• Prof. Mike Theobald, Chairman, UK• Dr. Ronald Copley, USA• Prof. Darell Duffie, USA• Dr. Jean-Claude Dufournet, Switzerland• Prof. Takao Kobayashi, Japan• Prof. Otto Loistl, Germany• Prof. Juan A. Palacios, Spain• Prof. Miguel Angelo Arab, Brazil
ACIIA® Association of Certified International Investment Analysts 39
How are the CIIA® examination papers prepared?
The CIIA® is a truly international examination: examination questions come from around the world.
• Questions are drafted by different national societies
• The IEC prepares a definitive version of the examination papers
ACIIA® Association of Certified International Investment Analysts 40
How are the examinations corrected?
• The first correction is made by the national societies and marginal papers are identified.
• The marginal papers are then re-graded by the national societies. Remaining marginal papers are graded centrally within ACIIA® and the final grading is checked by the IEC.
ACIIA® Association of Certified International Investment Analysts 41
Organisational Aspects
Each society is responsible for:
• the organisation of the CIIA® examination
• the preparation of its candidates
• the preparation of the educational material (manuals, handouts) for its candidates
ACIIA® Association of Certified International Investment Analysts 42
CIIA® Candidate Preparation
National Societies are responsible for providing good training courses and materials for CIIA® candidates.
In Europe, manuals consistent with the CIIA® syllabus have been developed by the Swiss Centre and by a group of the German, French, Spanish and Belgian Societies. Integration of the materials into one set is under way.
ACIIA® Association of Certified International Investment Analysts 43
Comparison CIIA® vs. CFA
Resume• The readings are by and large comparable.
• The CFA-syllabus lacks a national-specific topic section over and above the US-market. Legal requirements, accounting rules and investment regulation, the syllabus and the readings are all US-oriented.
• The CIIA® – program addresses both issues: the legal local/regional rules and regulations, and the US-regulations.
ACIIA® Association of Certified International Investment Analysts 44
Resume CIIA®
• Advanced international, professional qualification for capital market experts
• International acceptance
• Global, regional and local education
• Eleven globally recognised languages
• Complements existing national qualification programs
• Respects individual cultures, languages and legal orders
• Assures independence of CIIA® holders and National Societies
• Ethical standards are controlled by the local member society