financial advisory and intermediary services act: determination … · 2015. 10. 1. · forex...

16
-.j co 47 z o No.j Task Knowledge Criteria Skill Criteria risk vs. return, volatility) as it relates to: client's risk profile, including advice on existing I bonds, investment portfolio's and implications of portfolio I · restructuring. : property / alternative investments and equities, I I cash investments. Briefly describe financial markets and instruments in terms of investments including: · Capital market I Money Market · Equity Market · Property Market. · · · Hard Assets Derivatives Discuss the legal requirements associated with I Collective Investment Schemes according to CISCA and other relevant legislation. List the relevant industry role players in collective investments and describe their functions including but not limited to: .. CIS Manager (Management Co) Trustee / Custodian Registrar · ASISA USPs Analyse new developments reported in the media Match the appropriate collective investment scheme that could impact on the collective investment portfolio with the client's risk profile and investment industry. needs. Describe the different types of collective financial plan with Describe the different types interest-bearing Develop and present a 4. investments and explain the differences to the client recommendations and investments including but not limited to: in plain language and in accordance with the client's money market instruments · existing knowlege in order to assist the client make alternatives. bonds an appropriate investment decision. · gilts · loan stock w -' ()1 -' +> G) m JJ z s: m z -I G) 5 m ()1 § o III m JJ I\) o o co

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Page 1: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

-.j co

47

z o

No.

j T

ask

K

no

wle

dg

e C

rite

ria

Ski

ll C

rite

ria

risk

vs.

retu

rn,

vola

tility

) as

it r

elat

es to

: cl

ient

's r

isk

prof

ile,

incl

udin

g ad

vice

on

exis

ting

I •

bond

s,

inve

stm

ent

port

folio

's a

nd i

mpl

icat

ions

of

port

folio

I

· re

stru

ctur

ing.

:

prop

erty

/ al

tern

ativ

e in

vest

men

ts a

nd

• eq

uitie

s,

I I•

cash

inve

stm

ents

.

Bri

efly

des

crib

e fin

anci

al m

arke

ts a

nd i

nstr

umen

ts in

te

rms

of in

vest

men

ts i

nclu

ding

:

· C

apita

l m

ark

et

IM

oney

Ma

rke

t ·

Equ

ity M

arke

t ·

Pro

pert

y M

arke

t. · · ·

Har

d A

sset

s D

eriv

ativ

es

Dis

cuss

the

lega

l re

quir

emen

ts a

ssoc

iate

d w

ith

I C

olle

ctiv

e In

vest

me

nt S

chem

es a

ccor

ding

to

CIS

CA

an

d ot

her

rele

vant

legi

slat

ion.

Li

st t

he

rel

evan

t in

dust

ry r

ole

play

ers

in c

olle

ctiv

e

inve

stm

ents

and

des

crib

e th

eir

func

tions

inc

ludi

ng

but

no

t lim

ited

to:

.. C

IS M

anag

er (

Ma

na

ge

me

nt

Co)

Tru

ste

e /

Cus

todi

an

• R

egis

trar

· A

SIS

A

• U

SP

s A

naly

se n

ew d

evel

opm

ents

rep

orte

d in

th

e m

edia

M

atch

the

appr

opri

ate

colle

ctiv

e in

vest

men

t sc

he

me

th

at c

ould

im

pact

on

the

col

lect

ive

inve

stm

ent

port

folio

with

the

clie

nt's

ris

k pr

ofile

and

inv

estm

ent

indu

stry

. ne

eds.

D

escr

ibe

the

diff

eren

t typ

es o

f col

lect

ive

finan

cial

pla

n w

ith

Des

crib

e th

e d

iffe

ren

t typ

es i

nter

est-

bear

ing

Dev

elop

an

d p

rese

nt

a 4.

in

vest

men

ts a

nd e

xpla

in t

he

diff

eren

ces

to t

he c

lient

re

com

men

datio

ns a

nd

inve

stm

ents

incl

udin

g b

ut n

ot

limite

d to

: in

pla

in l

angu

age

and

in a

ccor

danc

e w

ith t

he c

lient

's

mo

ne

y m

ark

et i

nstr

umen

ts

· ex

istin

g kn

owle

ge in

ord

er to

ass

ist t

he c

lient

mak

e al

tern

ativ

es.

bond

s an

app

ropr

iate

inve

stm

ent d

ecis

ion.

·

gilts

· lo

an s

tock

w

-'

()1

-' +>

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Page 2: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

48

No

. T

ask

Kn

ow

led

ge

Cri

teri

a I

Ski

ll C

rite

ria

I I D

escr

ibe

the

Typ

es o

f eq

uity

-bas

ed i

nves

tmen

ts

incl

udin

g bu

t n

ot

limite

d to

: •

shar

es

Exp

lain

how

col

lect

ive

inve

stm

ent

sche

me

port

folio

s ar

e cl

assi

fied

in a

ccor

danc

e w

ith t

he A

ssoc

iatio

n fo

r S

avin

gs a

nd I

nves

tmen

t for

SA

(A

SIS

A)

Cod

e of

P

ract

ice

rela

ting

to F

und

Cla

ssifi

catio

ns f

or S

A

Reg

ulat

ed C

I P

ortfo

lios.

E

xpla

in t

he d

iffer

ence

bet

wee

n an

app

rove

d lo

cal

CIS

and

a fo

reig

n ap

prov

ed C

IS a

nd t

he

imfJ

Iicat

ions

for

the

clie

nt.

Des

crib

e th

e st

ruct

ure

of a

Col

lect

ive

Inve

stm

ent

Sch

eme.

Des

crib

e th

e di

ffer

ent t

ypes

of

Col

lect

ive

Inve

stm

ent

!

Sch

emes

incl

udin

g bu

t n

ot l

imite

d to

: I

• U

nit T

rust

s

· • O

pen-

End

ed I

nves

tmen

t Com

pani

es (

OIE

Cs)

P

artic

ipat

ory

Bon

ds

• C

olle

ctiv

e In

vest

men

t Sch

emes

in P

rope

rty

D

escr

ibe

the

uniq

ue c

hara

cter

istic

s o

f a

colle

ctiv

e

inve

stm

ent s

chem

e in

clud

ing

but

not l

imite

d to

: T

rans

pare

ncy

Affo

rd a

bilit

y

Ta

x E

ffect

iven

ess

'.

Li

quid

ity

· · Dif

fere

nti

ate

bet

wee

n th

e di

ffer

ent t

ypes

of C

IS

port

folio

s (e

.g.

bond

s vs

. eq

uitie

s) i

nclu

ding

but

not

lim

ited

to:

· • E

quity

Fun

ds

Inco

me

Fun

ds

• B

ond

Fun

ds

· · • H

edge

Fun

ds

Pro

pert

y F

unds

R

and

Den

omin

ated

Fun

ds

(JJ ~ ~ A o m

JJ » z :-i

(]J 8 o OJ m

JJ

N o o co z o W

..

.J. ~

-I'>

--.I

(I)

Page 3: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

I

9

49

. I

Ta

sk

--

Kn

ow

led

ge

Cri

teri

a

· • F

orei

gn F

un

ds

Fun

d of

Fun

ds

• M

ulti-

Man

ager

Fun

ds

Diff

eren

tiate

bet

wee

n fu

nd m

anag

ers

and

thei

r ap

proa

ches

.

· Dis

cuss

the

initi

al a

nd o

ngoi

ng c

osts

inv

olve

d in

with

C

olle

ctiv

e In

vest

me

nt S

chem

es i

nclu

ding

: In

itial

fee

s •

Bro

kera

ge f

ees

• A

nnua

l ser

vice

fees

· • V

AT

P

ortfo

lio C

harg

es

• S

witc

hing

Cos

ts

Tra

iler

Fee

s E

xpla

in t

he t

ax

impl

icat

ions

invo

lved

in C

olle

ctiv

e In

vest

me

nt S

che

me

s in

clud

ing

Cap

ital

Gai

ns T

ax.

· Diff

eren

tiate

bet

wee

n th

e di

ffer

ent t

ypes

of

tran

sact

ions

in a

col

lect

ive

inve

stm

ent

sche

me

port

folio

. E

xpla

in t

he p

roce

ssin

g im

plic

atio

ns r

elat

ed t

o co

llect

ive

inve

stm

ent

sche

me

tran

sact

ions

(e.

g.

_v§l

.luat

ion,

pric

ing)

. D

iscu

ss t

he c

osts

inv

olve

d w

ith t

he v

ario

us

colle

ctiv

e in

vest

men

t sc

hem

e tr

ansa

ctio

ns.

Dis

cuss

the

ta

x im

plic

atio

ns in

volv

ed w

ith c

olle

ctiv

e in

vest

me

nt s

chem

es.

Indi

cate

ho

w c

olle

ctiv

e in

vest

men

t sch

emes

are

re

port

ed in

the

me

dia

incl

udin

g b

ut n

ot l

imite

d to

: •

NA

V

· · Y

ield

P

rice

Ski

ll C

rite

ria

Com

mun

icat

e th

e im

plic

atio

ns o

f a t

rans

actio

n re

latin

g to

a c

olle

ctiv

e in

vest

men

t sc

hem

e po

rtfo

lio

to t

he c

lient

.

Cal

cula

te t

he v

alue

of

a cl

ient

s' i

nve

stm

en

t in

a co

llect

ive

inve

stm

ent

sche

me

port

folio

usi

ng f

und

fact

she

ets

and

info

rmat

ion

prov

ided

in t

he

med

ia.

I

(I) o z (.i) ... (J1 ... -I>

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JJ z s: m

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Page 4: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

------

50

Tas

l, K

no

wle

dg

e C

rite

ria

------+---~--~----

Tot

al E

xpen

se R

atio

s (f

ER

) V

alue

and

Dis

trib

utio

ns

Per

form

ance

E

xpla

in t

he c

once

pt o

f hi

stor

ical

per

form

ance

.

Dis

cuss

the

co

nte

nt

and

purp

ose

of f

act

shee

ts in

as

sist

ing

a cl

ien

t to

ma

ke a

n ap

prop

riat

e in

vest

men

t

Ski

ll C

rite

ria

Inte

rpre

t a

clie

nt s

tate

me

nt

for

a co

llect

ive

inve

stm

en

t sc

hem

e n

nrt

fnlin

Dis

cuss

re

qu

ire

me

nts

rel

atin

q to

the

re

port

ing

of

colle

ctiv

e in

vest

me

nt

sche

mes

.

ma

na

ge

me

nt

sch

em

e

Dis

cuss

the

rel

evan

ce o

f di

sclo

sure

s, r

ecor

d of

S

truc

ture

a

to a

clie

nt t

o en

able

the

m t

o a

dvi

ce a

nd t

he F

AIS

cod

e of

con

duct

whe

n I-

----

i---

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~~~~

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--I-

!..::::d

..::::ev~e

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g a fi

nanc

ial

plan

ning

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po

rt

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finan

cial

pla

n an

d re

com

me

nd

atio

ns.

ma

ke a

n ap

prop

riat

e in

vest

me

nt

deci

sion

Pro

cess

the

tra

nsac

tion

time

ou

sly

and

in

acco

rdan

ce w

ith r

eg

ula

tory

req

uire

men

ts.

Mon

itor

the

finan

cial

pla

n an

d D

iscu

ss c

lient

exp

ect

atio

ns

aft

er

the

pu

rch

ase

of

a6.

re

com

men

datio

ns.

colle

ctiv

e in

vest

me

nt

sch

em

e p

ortf

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Page 5: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

51

Se

ctio

n 9

: R

E 9

: S

econ

d Le

vel

Re

gu

lato

ry E

xam

ina

tion

: S

ecu

ritie

s A

nd

In

stru

me

nts

All

repr

esen

tativ

es p

erfo

rmin

g fin

anci

al s

ervi

ces

in r

elat

ion

to c

ateg

ory

I, II

and/

or I

IA d

ealin

g w

ith s

ubca

tego

ries

reso

rtin

g un

der

Sec

uriti

es

and

Inst

rum

ents

are

req

uire

d to

com

plet

e a

first

lev

el r

egul

ator

y ex

amin

atio

n, b

ased

on

the

qual

ifyin

g cr

iteria

as

it ap

pear

s in

Sec

tion

4 an

d a

seco

nd l

evel

reg

ulat

ory

exam

inat

ion

base

d on

the

qua

lifyi

ng c

riter

ia in

Sec

tion

9.

(2)

Exa

min

atio

n bo

dies

hav

e th

e di

scre

tiona

ry p

ower

s to

off

er a

com

bina

tion

exam

inat

ion

for

repr

esen

tativ

es w

orki

ng w

ith c

ateg

ory

I, II

and/

or

IIA d

ealin

g w

ith s

ubca

tego

ries

res

ortin

g un

der

Sec

uriti

es a

nd I

nstr

umen

ts,

whe

re s

uch

repr

esen

tativ

es m

ay c

hoos

e to

com

plet

e on

e ex

amin

atio

n th

at a

ddre

sses

the

qua

lifyi

ng c

riter

ia a

s it

appe

ars

in S

ectio

ns 4

and

9.

(3)

The

rel

evan

t su

bcat

egor

ies

in S

ecur

ities

and

Ins

trum

ents

are

to

be t

aken

int

o ac

coun

t w

hen

sele

ctin

g th

e qu

alify

ing

crite

ria

that

form

the

ba

sis

of th

e re

leva

nt s

econ

d le

vel

regu

lato

ry e

xam

inat

ion.

E

xam

inat

ion

bodi

es a

re r

equi

red

to p

acka

ge th

e se

cond

leve

l re

gula

tory

ex

amin

atio

n ac

cord

ing

to t

he s

ubca

tego

ries.

T

he q

ualif

ying

crit

eria

in S

ectio

n 4

and

Sec

tion

9 se

rve

as t

he c

riter

ia a

gain

st w

hich

qua

lific

atio

ns w

ill be

eva

luat

ed f

or i

nclu

sion

on

the

list

of r

ecog

nise

d qu

alifi

catio

ns.

Ta

sk

__L

Kn

ow

led

ge

Cri

teri

a

Ski

ll C

rite

ria

G

ener

al t

o a

ll

I~1~--

rRe

fra

mtr

om

act

ion

sth

atc

an

U

nder

stan

d th

e di

ffer

ent

form

s of

mar

ket

abus

e in

clud

ing

insi

der

-\

be r

egar

ded

as m

arke

t tr

adin

g, p

rohi

bite

d tr

adin

g pr

actic

es a

nd m

akin

g fa

lse,

mis

lead

ing

ab

use.

or

dec

eptiv

e st

atem

ents

, pr

omis

es a

nd f

orec

asts

and

the

I

guid

elin

es w

ith r

egar

d to

adv

ertis

ing

and

publ

ishi

ng o

f pr

ice-

sens

itive

inf

orm

atio

n.

Und

erst

and

the

prin

cipl

es o

f de

rivat

ives

and

how

this

inf

luen

ces

Pro

vide

an

inve

stm

ent

stra

tegy

bas

ed

resp

ect

to i

nves

tmen

t P

rovi

de a

dvic

e to

clie

nts

with

2

on t

he e

cono

mic

env

ironm

ent.

stra

tegy

. in

vest

men

t st

rate

gy.

Dis

cuss

the

eco

nom

ic o

bjec

tives

in a

mar

ket

econ

omy.

(G

ener

al

to a

ll)

Exp

lain

the

im

pact

of

econ

omic

pol

icy

stra

tegi

es o

n th

e

econ

omy.

Com

pare

the

diff

eren

ces

betw

een

mon

etar

y po

licy

and

fisca

l po

licy

and

the

tool

s th

at f

orm

par

t of

eac

h th

at G

over

nmen

t

coul

d us

e to

inf

luen

ce t

he e

cono

m

. D

iscu

ss t

he b

usin

ess

cycl

e an

d th

e ef

fect

on

asse

t cl

asse

s an

d

all

sect

ors

(I)

!\) z <:) w

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Page 6: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

52

not

limite

d to

Gro

ss D

omes

tic P

rodu

ct (

GO

P),

Priv

ate

Con

sum

ptio

n S

pend

ing,

Gov

ernm

ent

Spe

ndin

g, I

nves

tmen

t I s

pend

ing,

Con

sum

er p

rice

Inde

x (e

PI)

, P

rodu

cer

pric

e In

dex

~I}, a

nd C

urre

nt A

ccou

nt B

alan

ce.

I Dis

cuss

the

link

ages

bet

wee

n ec

onom

ic in

dica

tors

and

the

fo

llow

ing

vari

able

s in

the

eco

nom

y fo

r ex

ampl

e in

tere

st r

ates

, . b

ond

eric

es,

shar

e pr

ices

and

the

exc

han

e ra

te.

Det

erm

ine

the

stag

e in

the

bus

ines

s cy

cle

base

d on

the

ec

onom

ic i

ndic

ator

s.

3 P

rovi

de a

dvic

e to

clie

nts

vvith

re

spec

t to

exc

ha

ng

e tr

aded

D

iscu

ss t

he f

unct

ions

of

an e

xcha

nge.

inve

stm

ents

D

iscu

ss s

ecur

ities

lis

tings

and

wha

t di

sclo

sure

req

uire

men

ts

shou

ld b

e co

mpl

ied

with

.

Exp

lain

und

er w

hich

cir

cum

stan

ces

may

tak

e pl

ace

and

whi

ch d

iscl

osur

e re

quire

men

ts s

houl

d be

co

mel

ied

with

. In

dica

te w

hich

iss

ues

mus

t be

addr

esse

d ex

chan

ge.

the

rule

s of

an

Exp

lain

the

rol

e, f

unct

ions

and

dut

ies

of c

entr

al s

ecur

ities

de

posi

tori

es a

nd p

artic

ipan

ts,

wha

t un

cert

ifica

ted

secu

ritie

s ar

e an

d th

e ro

le p

laye

d by

issu

ers.

F

ore

ign

Exc

han

ge

Mar

kets

-on

beh

alf

of Ih

e "~[:e

Ihe

lerm

s '~oreign e

xcha

nge"

and "

exch

ange

ral

e"

clie

nt w

ithin

the

par

amet

ers

of

the

curr

ency

tra

ding

man

date

an

d gi

ve t

he c

lient

the

ap

prop

riate

adv

ice

I Exp

lain

the

diff

eren

ce b

etw

een

the

spot

mar

ket

and

forw

ard

mar

ket.

! Ide

ntify

the

part

icip

ants

in t

he f

orei

gn e

xcha

nge

mar

ket.

~Pia;n

Ih~m

oliv

atio

n fo

r fo

reig

n ex

chan

ge Ir

ansa

ctio

ns

Ski

ll C

rite

ria

Adv

ise

on t

he p

roce

dure

s o

f tr

adin

g on

an

exch

ange

tha

t ar

e in

lin

e w

ith

the

rule

s an

d re

gula

tions

of t

he

exch

ange

.

Pro

vide

adv

ice

on

tran

sact

ions

in t

he F

orei

gn e

xcha

nge

mar

ket

with

a v

iew

to o

ptim

isin

g in

vest

men

t re

turn

s.

Exe

cute

for

eign

exc

hang

e tr

ansa

ctio

ns o

n th

e in

stru

ctio

n of

the

cl

ient

.

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Page 7: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

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I

Ta

sk

I '--I I i I

I • I !I ,

II i I

I !

--r

.Kn

ow

led

ge

Cri

teri

a -

Ski

ll C

rite

ria

Des

crib

e th

e di

ffer

ent e

xcha

nge

rate

reg

imes

and

how

1

­ex

chan

ge r

ates

are

man

aged

und

er t

he d

iffer

ent r

egim

es

\incl

udin

g fix

ed r

ate

exch

ange

rat

e sy

stem

s, s

emi-f

ixed

rat

e

. sys

tem

s, a

nd f

loat

ing

exch

ange

rat

e sy

stem

s.

1---

-~

I D

iscu

ss t

he f

acto

rs a

ffect

ing

exch

ange

rat

es i

nclu

ding

Ipu

rcha

sing

pow

er p

arity

, in

tere

st r

ate

fact

ors

and

the

bal

ance

of

a

men

t.

Def

ine

the

fore

x rn

arke

t an

d its

fea

ture

s an

d di

scus

s th

e

mec

hani

cs o

f tr

adin

g in

the

for

ex m

arke

t.

Nam

e th

e fe

atur

es o

f th

e fo

rex

ma

rke

t.

Des

crib

e th

e m

echa

nics

of t

radi

ng in

the

for

ex m

arke

t.

Def

ine

the

inte

rban

k m

arke

t. N

ame

the

feat

ures

of

the

inte

rban

k m

arke

t an

d de

scrib

e ho

w th

e pa

rtiC

ipan

ts c

ontr

ibut

e to

the

for

ex m

arke

t by

mar

ket

mak

ing.

~xplain

the

impa

ct o

f st

anda

rdis

atio

n an

d re

gula

tion

in t

he f

orex

i

mar

ket f

rom

the

per

spec

tive

of th

e in

tern

atio

nal

natu

re o

f the

I

mar

ket.

Des

crib

e th

e tw

enty

-fou

r ho

urs

per

day

natu

re o

f th

e fo

rex

mar

ket

and

the

impl

icat

ions

the

reof

for

tra

ders

. Id

entif

y fo

reig

n ex

chan

ge c

lass

ifica

tions

inc

ludi

ng t

he U

S d

olla

r,

maj

or c

urre

ncie

s, m

inor

cur

renc

ies,

exo

tic c

urre

ncie

s, e

mer

ging

m

arke

t cu

rren

cies

and

cur

renc

y ba

sket

s.

k

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m

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Iden

tify

the

part

icip

ants

in t

he f

orex

mar

ket

and

expl

ain

the

reas

ons

for

usin

g th

e fo

rex

mar

ket

incl

udin

g ex

port

ers

and

impo

rter

s, f

orei

gn d

irect

inve

stor

s, f

orei

gn p

ortfo

lio in

vest

ors,

~e

cula

tive

pl'Q

Prie

tary

trad

jr1g.

E

xpla

in t

he i

mpa

ct o

f st

anda

rdiz

atio

n an

d re

gula

tion

in t

he f

orex

m

arke

t fro

m t

he p

ersp

ectiv

e of

the

inte

rnat

iona

l na

ture

of t

he

mar

ket.

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cuss

the

prin

cipl

es o

f the

Eur

o m

arke

t, in

tere

st r

ate

I. diff

eren

tials

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rren

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isk

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ight

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Page 8: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

Ta

sk

Kn

ow

led

ge

Cri

teri

a

Ski

ll C

rite

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co

ncep

ts r

elev

ant

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ract

ical

ope

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ex

incl

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rime

brok

erag

e, w

hite

lab

ellin

g an

d ou

tsou

rcin

g,

I aut

o-pr

icin

g, s

trai

ght

thro

ugh

proc

essi

ng a

nd a

utom

atio

n.

[ E

xpla

in t

he c

once

pt o

f vol

atili

ty a

nd h

ow c

urre

ncy

is

I mea

sure

d.

! D

iscu

ss t

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wen

ty-f

our

hour

s pe

r d

ay

natu

re o

f the

for

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plic

atio

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ora

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Des

crib

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clud

e an

d pr

oces

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vest

men

t in

clud

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mar

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mak

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brok

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tr

ansa

ctio

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the

for

eign

exc

hang

e 12

I .

E "-

I'"

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d'

. I

d'

. .

I m

arke

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oprie

tary

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g e-

inve

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ent

retu

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ba

nk s

yste

ms

and

mul

ti-ba

nk s

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ms

or p

orta

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..-. .

...---,,-----:---­

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cuss

the

diff

eren

ces

betw

een

who

lesa

le a

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etai

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ader

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ng-,

med

ium

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ort-

term

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ine

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spot

mar

ket.

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vide

adv

ice

on i

nves

tmen

t tr

ansa

ctio

ns in

the

3

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vide

adv

ice

with

res

pect

to

tran

sact

ions

in t

he s

pot

mar

ket w

ith a

fo

reig

n ex

chan

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arke

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:-;-

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iew

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nt r

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lain

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spot

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ket

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ble

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pply

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clud

e an

d pr

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ase

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tr

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ark

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nt m

athe

mat

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calc

ulat

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ine

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indi

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bids

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off

ers

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ble

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o th

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quis

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calc

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calc

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the

~ISCUSS

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conc

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prin

cipl

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elev

ant

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he spo~

mar

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cost

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the

trad

e,

time

fact

ors

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valu

e da

te,

roll

over

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cro

ss c

urre

ncie

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expr

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am

ou

nt

in

one

curr

ency

in t

erm

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f an

othe

r cu

rren

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calc

ulat

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ates

.

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Page 9: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

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to

Ol z

5S

~ (.oJ .... .... ..,.

No.

T

ask

K

no

wle

dg

e C

rite

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ll C

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rovi

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dvic

e to

clie

nts

with

re

spec

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war

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ansa

ctio

ns in

the

for

eign

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chan

ge m

ark

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ine

the

forw

ard

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ign

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ange

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:-..

. .

...

i E

xpla

in h

ow

the

quot

ing

of f

orw

ard

rate

s oc

curs

.

t C

oncl

ude

and

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ess

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ard

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ign

i e

xch

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ge

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ent t

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actio

ns in

th

e fo

rwar

d m

arke

t w

ith a

vie

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op

timis

ing

inve

stm

ent

retu

rns

. A

pply

the

prin

cipl

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f the

for

war

d fo

reig

n ex

chan

ge m

arke

t.

... D

escr

ibe

the

feat

ures

of t

he f

orei

gn e

xcha

nge

forw

ard

mar

ket.

Ap

ply

the

mat

hem

atic

s an

d ca

lcul

atio

ns r

elev

ant

to t

he f

orw

ard

....

fore

ign

exch

ange

mar

ket.

C

alcu

late

out

right

forw

ard

prem

ium

an

d di

scou

nt p

oint

s.

5 P

rovi

de a

dvic

e to

clie

nts

with

re

spec

t to

sw

aps

in t

he

fore

ign

exch

ange

ma

rke

t

loef

ine

curr

ency

sw

aps.

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clud

e an

d pr

oces

s sw

ap

tr

ansa

ctio

ns in

the

for

eign

exc

hang

e m

arke

t w

ith a

vie

w to

opt

imis

ing

inve

stm

ent

retu

rns.

,

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cuss

the

fea

ture

s of

cur

renc

y sw

aps,

the

mot

ivat

ion

for

usin

g cu

rre

ncy

sw

aps

and

be a

ble

to a

pply

its

prin

cipl

es.

Ap

ply

the

prin

cipl

es o

f the

cu

rre

ncy

sw

aps.

Exp

lain

the

pra

ctic

al a

pplic

atio

n of

fore

x sw

aps

and

be a

ble

to

appl

y th

e pr

inci

ples

to

case

stu

dies

, in

clud

ing

man

agin

g po

sitio

ns a

nd c

hang

ing

sett

lem

ent

date

s, h

edgi

ng i

nter

est

rate

di

ffer

entia

l ris

k, s

pecu

latin

g on

int

eres

t rat

e di

ffere

ntia

ls a

nd

arbi

trag

ing

the

fore

ign

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ange

and

int

eres

t rat

e m

arke

ts.

Ap

ply

the

mat

hem

atic

s an

d ca

lcul

atio

ns r

elev

ant

to c

urr

en

cy

swap

s.

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cuss

the

fea

ture

s o

f the

cur

renc

y sw

aps,

the

mot

ivat

ion

for

6 I

Pro

vide

adv

ice

to c

lient

s w

ith

resp

ect

to f

utur

es i

n th

e fo

reig

n e

xch

an

ge

mar

ket.

usin

g fo

rex

swap

s, q

uota

tion

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rex

swap

s an

d be

abl

e to

ap

ply

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rinci

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. 1

Def

ine

fore

ign

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.

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lain

the

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ture

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res

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iro

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Te io

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exc

hang

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urns

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Page 10: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

7

56

Ta

sk

Kn

ow

led

ge

Cri

teri

a

Pro

vide

adv

ice

to c

lient

s w

ith

resp

ect

to o

ptio

ns in

the

fo

reig

n ex

chan

ge m

arke

t.

Pro

vide

adv

ice

to c

lient

s v'I

'ith

resp

ect

to o

ptio

ns in

the

fo

reig

n ex

chan

ge m

ark

et

Dis

cuss

the

met

hods

of

anal

ysis

use

d in

the

for

ex m

arke

t re

spec

t to

fu

ndam

enta

l P

rovi

de a

dvic

e to

clie

nts

with

9

fund

amen

tal

anal

ysis

, te

chni

cal

anal

ysis

and

rel

atio

nal

anal

ysis

in t

he fo

reig

n an

alys

is.

exch

ange

mar

ket.

Und

erst

and

the

loca

l I D

iscu

ss t

he l

ocal

exc

hang

e co

ntro

l re

stric

tions

. ex

chan

ge c

ontr

ol r

estr

ictio

ns.

10

Pro

vide

adv

ice

to c

lient

s w

ith

resp

ect

to r

isk

ma

na

ge

me

nt

in t

he to

reiQ

n ex

chan

ge

mar

ket.

I Exp

lain

how

op

tions

are

use

d to

spe

cula

te a

nd h

edge

.

Dis

cuss

opt

ion

valu

atio

n in

clud

ing

but

not

limite

d to

: w

hat

you

buy,

th

e va

lue

over

a c

erta

in p

erio

d of

tim

e,

nam

e th

e op

tions

, I' '

put

and

call,

I.. • m

ust

be a

ble

to i

nter

pret

the

ans.

wer

, in

terp

ret

payo

ff pr

ofile

s.

.. -------,-------1

1

Exp

lain

the

con

cept

of

delta

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how

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lain

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rs in

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se t

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posi

ts.

mar

gin

Exp

lain

the

con

cept

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as

appl

ied

in t

he f

orex

mar

ket.

Dis

cuss

the

risks

inv

olve

d in

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ex in

vest

men

ts in

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ing

mar

ket

risk,

exc

hang

e ra

te r

isk,

cou

nter

part

y ris

k, l

iqui

dity

ris

k,

com

mon

-fac

tor

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eve

nt r

isk,

mod

el r

isk,

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ager

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k,

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rage

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k, c

apac

ity r

isk,

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per

form

ance

m

anag

emen

t ris

k an

d op

erat

iona

l ris

k.

I Ch

ara

cte

rist

ics

of

ma

rke

ts a

nd

tra

din

g s

yste

ms

and

me

tho

do

log

ies

L-_

__

__

__

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_

Ski

ll C

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oncl

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ess

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n tr

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iew

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t re

turn

s.

Cal

cula

te t

he v

alue

of

curr

ency

op

tions

at

expi

ry a

nd p

rior

to e

xpiry

.

Adh

ere

to m

argi

n re

quire

men

ts w

hen

proc

essi

ng t

rans

actio

ns

in f

utur

es.

Per

form

fun

dam

enta

l, te

chni

cal

and

rela

tiona

l an

alys

is in

the

for

eign

ex

chan

ge m

arke

t w

ith a

vie

w to

op

timiS

ing

inve

stm

ent

retu

rns.

App

ly t

he lo

cal

exch

ange

con

trol

re

stric

tions

in a

tran

sact

ion.

App

ly r

isk

man

agem

ent

prin

Cip

les

in

the

fore

ign

exch

ange

mar

ket

with

a

view

to o

ptim

isin

g in

vest

men

t re

turn

s.

__

__

__

__

__

__

__

__

__-L

__

__

__

__

__

__

__

__

__

__

__

__~

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(j) 6 m

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OJ

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lJ

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11

Page 11: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

INo,

I

Ta

sk

12

. Pro

vid

e a

dvic

e to

clie

nts

with

,

resp

ect

to d

iffer

ent

busi

ness

I

stru

ctu

res.

J .. Pro

vide

adv

ice

to c

lient

s w

ith

resp

ect

to i

nves

tmen

t op

port

uniti

es in

diff

eren

t ca

pita

l st

ruct

ures

.

10

14

Pro

vide

adv

ice

to c

lient

s w

ith

resp

ect

to d

iffer

ent

mar

ket

stru

ctur

es,

I 15

-P

rovi

de a

dvic

e to

clie

nts

with

It

:om

pa

re th

e di

ffer

ent

trad

ing

syst

ems

used

by

exch

ange

s re

spec

t to

exc

hang

e tr

aded

in

clud

ing

orde

r-dr

iven

or

auct

ion

mar

kets

, qu

ote

driv

en o

r de

aler

in

vest

men

ts.

mar

kets

. f-

c. Exp

lain

tra

ding

rne

thod

olog

y of

sto

ck m

arke

ts a

nd b

e ab

le t

o di

ffere

ntia

te b

etw

een

call

mar

kets

and

con

tinuo

us m

arke

ts.

Pro

vide

adv

ice

to c

lient

s w

ith

resp

ect

to t

he a

pplic

atio

n o

f st

ock

mar

ket i

ndic

es

~.

57

Kn

ow

led

ge

Cri

teri

a

Ski

ll C

rite

ria

Exp

lain

the

diff

eren

ce b

etw

een

priv

ate

com

pani

es,

sole

tra

ders

, S

ugge

st a

n ap

prop

riate

bus

ines

s pa

rtne

rshi

ps a

nd p

ublic

com

pani

es,

colle

ctiv

e in

vest

men

t S

truc

ture

. I s

chem

es .

I In

dica

te t

he d

iffer

ent t

ypes

of

long

-ter

m f

unds

use

d b

y I

com

pani

es,

bein

g de

bt,

pref

eren

ce s

hare

s an

d or

dina

ry s

hare

s,

gene

ra!

-com

pany

fina

ncia

l st

ruct

ures

.

Dis

cuss

the

diffe

rent

pro

pert

ies

of d

ebt f

inan

cing

, co

nver

tible

in

stru

men

ts,

shar

es a

nd p

refe

renc

e sh

ares

incl

udin

g m

atur

ity,

seni

ority

of

clai

m.

tax

trea

tmen

t in

res

pect

of t

he i

ssui

ng

com

pany

and

the

inv

esto

r /

debt

com

pany

. (g

ener

al c

om

pa

ny

finan

cial

str

uctu

res)

. I D

iscu

ss th

e ch

arac

teris

tics

of

effic

ient

mar

kets

.

Dis

cuss

the

func

tions

and

cha

ract

eris

tics

of p

rimar

y m

arke

ts a

nd

be a

ble

to d

iffer

entia

te b

etw

een

seas

oned

new

issu

es a

nd i

nitia

l pu

blic

offe

rings

. E

xpla

in w

hat

seco

ndar

y m

arke

ts a

re a

nd c

ompa

re t

he d

iffer

ence

be

twee

n ov

er-t

he-c

ount

er (

OT

C)

mar

kets

and

sto

ck e

xcha

nges

,

Exp

lain

fin

anci

al m

arke

t ind

ices

and

ind

icat

e w

hat t

hey

are

used

fo

r. (

gene

ral),

I

Dis

cuss

the

fact

ors

cons

ider

ed w

hen

bui!d

ing

finan

cia!

ind

ices

.

Giv

e e

xam

ples

of t

he a

bove

-sai

d in

dice

s lo

cally

and

in

tern

atio

nally

,

Eva

luat

e di

ffere

nt c

apita

l st

ruct

ures

.

Com

pare

and

eva

luat

e di

ffer

ent

mar

ket

stru

ctur

e.

Com

pare

and

eva

luat

e di

ffer

ent

exch

ange

s lo

cally

and

int

erna

tiona

lly.

Sug

gest

an

appr

opri

ate

mar

ket i

ndex

as

a b

ench

mar

k fo

r ev

alua

ting

an

inve

stm

ent

port

folio

,

!D

(I) z 9 (.,)

01

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m

Jl z s:: m

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G) ~ 9

m

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!l

l m

Jl

N 8 !D

16

Page 12: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

58

No.

K

no

wle

dg

e C

rite

ria

S

kill

Cri

teri

a

I I E

xpla

in t

he d

iffer

ent

wei

ghtin

g sc

hem

es u

sed

whe

n co

nstr

uctin

g ~ndiceSinC1Uding p

,ice-

wei

ghte

d se

,ies,

val

ue-w

eigh

ted

se,ie

s I I

and

unw

eigh

ted

or e

qual

ly w

eigh

ted

serie

s.

I E

xpla

in t

he u

se o

f th

ea

bo

ve-m

en

tion

ed

ser

ies

as b

ench

mar

ks

JI,

whe

n m

easu

ring

the

perf

orm

ance

of a

por

tfolio

. .~

Eq

uit

y a

nd

th

e B

usi

ne

ss C

ycle

17

! P

rovi

de a

dvic

e to

clie

nts

Wi!!

l I E

xpla

in w

hy s

tock

mar

kets

ant

icip

ate

the

busi

ness

cyc

le t

urni

ng

I Sel

ect

appr

opria

te e

quity

I

resp

ect

to t

he p

erfo

rman

ce o

f ~oints.

i in

vest

men

ts.

Idi

ffere

nt t

ypes

of

shar

es in

In

dica

te w

hich

typ

es o

f in

dust

ries

typi

cally

per

form

we

lliill

I

rela

tion

to t

he b

usin

ess

cycl

e.

, di

ffere

nt s

tage

s o

f the

bus

ines

s cy

cle

and

be a

ble

to p

inpo

int

the

I I

._

.

Fin

an

cia

l S

tate

me

nt

An

aly

sis

an

d M

ea

sure

s o

f C

orp

ora

te P

erf

orm

an

ce

.....

18

I eco

nom

ic f

acto

rs a

pply

ing

e.g.

int

eres

t ra

te c

hang

es,

cons

umer

I

'. s£

lend

ing

etc.

,

Dis

cuss

the

exp

ecte

d pe

rfor

man

ce o

f cyc

lical

and

def

ensi

ve

I sh

ares

. ~'.-

Com

pare

the

diffe

renc

e be

twee

n gr

owth

and

val

ue s

hare

s an

d in

dica

te th

e ch

arac

teris

tics

of e

ach,

--­

--_.

Com

pare

the

diffe

rent

inve

stm

ent s

tyle

s un

der

diffe

rent

mar

ket

cond

ition

s.

Per

form

fin

anci

al s

tate

men

t an

alys

is.

finan

cial

sta

tem

ent

anal

ysis

. no

rmal

ised

or

com

mon

-siz

e st

atem

ents

. P

rovi

de a

dvic

e w

ith r

espe

ct t

o I

Exp

lain

the

purp

ose

of d

etec

ting

tren

ds,

indu

stry

com

paris

ons,

I

Inte

rpre

t fin

anci

al s

tate

men

ts.

I.....

I

Def

ine

earn

ings

per

sha

re,

divi

dend

s pe

r sh

are

and

book

val

ue

Cal

cula

te e

arni

ngs

per

shar

e,

divi

dend

s pe

r sh

are,

boo

k va

lue

per

shar

e, t

he P

IE r

atio

, ne

t ass

et v

alue

I

per

shar

e.

I an

d di

vit::

lend

grow

th.

~Calcu

fate a

nd d

iscu

ss th

e fu

lluV

YII'

\:j m

easu

res

of c

orpo

rate

P

repa

re,

perf

orm

and

inte

rpre

t ra

tio

perf

orm

ance

, in

clud

ing

but n

ot li

mite

d to

: ea

rnin

gs p

er s

hare

, an

alys

is.

divi

dend

s pe

r sh

are

and

book

val

ue p

er s

hare

, th

e P

IE r

atio

, ne

t as

set

valu

e an

d di

vide

nd g

row

th

(f) ~ '-I

(f) 6 m

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Page 13: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

-----

---

59

! T

ask

K

no

wle

dg

e C

rite

ria

S

kill

Cri

teri

a D

efin

e ra

tio a

naly

sis,

in

part

icul

ar li

quid

ity r

atio

s, a

sset

· P

repa

re a

nd i

nter

pret

rat

io a

naly

sis

to

ma

na

ge

me

nt

or a

ctiv

ity r

atio

s, f

inan

cial

-lev

erag

e ra

tios,

and

co

mpa

re p

erfo

rman

ce,

in p

artic

ular

pr

ofita

bilit

y ra

tios.

liq

uidi

ty r

atio

s, a

sse

t-m

an

ag

em

en

t or

ac

tivity

rat

ios,

fin

anci

al-l

ever

age

L~

L

I ra

tios,

and

prof

itabil

ityLC

-'ra""t

:.::io:

.::sC-

'.__

_--"

E

qu

ity

Va

lua

tio

n

19

P

rovi

de a

dvic

e to

clie

nts

with

[

Exp

lain

wha

t fu

ndam

enta

l an

alys

is is

and

ind

icat

e w

hich

fa

cto

rsS

eT

ect

and

appl

y th

e di

vide

nd

resp

ect

to e

quity

val

uatio

n I

are

used

whe

n an

alY

Sin

g a

com

pany

. di

scou

nt m

odel

s in

clud

ing

the

Gor

don

theo

ry.

Gro

wth

mod

el,

the

two

-sta

ge

mod

el

and

the

thre

e-st

age

mod

el t

o eq

uity

va

luat

ion

as a

pplic

able

.

Exp

lain

the

diff

eren

t ap

proa

ches

to

equi

ty v

alua

tion

-d

isco

un

t I

App

ly F

ree

Cas

h-flo

w to

Equ

ity

mod

els,

cos

t of

cap

ital

and

rela

tive

valu

atio

n te

chni

ques

. (F

CF

E)

mod

els

-~

Per

form

rel

ativ

e va

luat

ions

, in

clud

ing

pric

e I e

arni

ngs

ratio

and

ma

rke

t I D

iscu

ss a

nd b

e ab

le t

o a

pp

ly th

e di

vide

nd d

isco

unt

mod

els.

---

'-­

(pric

e) t

o bo

ok v

alue

. lE

xp

lain

and

be

able

to

app

ly F

ree

Cas

h-flo

w to

Equ

ity (

FC

FE

) ! m

odel

s.

. E

xpla

in a

nd b

e ab

le t

o a

pply

rel

ativ

e va

luat

ion

tech

niqu

es

incl

udin

g pr

ice

I ea

rnin

gs r

atio

and

ma

rke

t (p

rice)

to

book

val

ue.

Off

er i

nves

tmen

t ad

vice

afte

r re

spec

t to

th

e i

mpa

ct

20

! P

rovi

de a

dvi

ce to

clie

nts

with

E

xpla

in w

hat

a co

mpe

titiv

e st

rate

gy is

and

dis

cuss

its

cons

ider

ing

the

impa

ct o

f m

an

ag

em

en

t q

ua

lity

has

on

foun

datio

ns a

nd c

ompe

titiv

e ad

vant

age.

m

anag

emen

t q

ua

lity

on t

he v

alue

of

a E

xpla

in h

ow

qua

lity

of m

an

ag

em

en

t im

pact

s on

the

va

lue

of

a co

mpa

ny.

com

pany

.

Po

rtfo

lio T

he

ory

an

d R

isk

the

valu

e o

f a

com

pany

.

CC

lnst

ruct

and

man

age

a po

rtfo

lio.

resp

ect

to p

ortf

olio

ana

lysi

s.

_ al

loca

tion,

sec

tor

anal

YS

iS,

secu

rity

ana

lysi

s, p

ortfo

lio a

naly

sis

-a

nd

por

tfolio

sel

ectio

n.

Dis

cu

ss th

e as

sum

ptio

ns u

nder

lyin

g po

rtfo

lio m

anag

emen

t.

21

Pro

vide

adv

ice

to c

lient

s w

ith ID

iscu

ss th

e ph

ases

of

port

folio

man

agem

ent,

inc

ludi

ng a

sset

Cal

cula

te e

xpec

ted

retu

rn,

vari

ance

an

d st

anda

rd d

evia

tion

and

cons

truc

t an

eff

icie

nt fr

ontie

r.

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Page 14: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

22

23

24

Ta

sk

Kn

ow

led

ge

Cri

teri

a S

kill

Cri

teri

a po

rtfo

lio a

naly

sis

and

be a

ble

to u

se a

nd c

alcu

late

P

erfo

rm a

sset

allo

catio

n, s

ect

or

retu

rn,

varia

nce

and

stan

dard

dev

iatio

n, t

he e

ffic

ient

se

curit

y an

alys

is,

port

folio

fr

ontie

r an

d po

rtfo

lio s

elec

tion.

an

alys

is a

nd p

ortfo

lio s

elec

tion.

Indi

cate

se

curi

ty a

naly

sis

is a

nd b

e ab

le t

o us

e an

d ca

lcul

ated

the

fol

low

ing:

exp

ecte

d re

turn

, va

riabi

lity

of

retu

rn,

the

norm

al p

roba

bilit

y di

strib

utio

n. c

ovar

iant

s an

d co

rrel

atio

n co

effic

ient

s.

Dis

cuss

the

ass

umpt

ions

und

erly

ing

the

capi

tal

asse

t pr

icin

g m

odel

and

th

e si

gnifi

canc

e o

f the

cap

ital

mar

ket

line

and

the

secu

rity

ma

rke

t lin

e.

Dis

cuss

the

ass

umpt

ions

and

how

to

use

them

inc

ludi

ng t

he

Dis

cuss

the

cap

ital

asse

t si

ngle

ind

ex m

odel

, al

pha'

s an

d be

tas

and

mul

ti-in

dex

mod

els.

m

odel

inc

ludi

ng t

he r

equi

red

rate

of

retu

rn (

cost

of

equi

ty)

and

ho

w to

ju

dge

the

reas

onab

lene

ss o

f in

vest

men

t ob

ject

ives

.

Exp

lain

wha

t tec

hnic

al a

naly

sis

is a

nd b

e ab

le to

diff

eren

tiate

it

Per

form

tec

hnic

al a

naly

sis.

fr

om f

unda

men

tal

anal

ysis

.

L..

....-

----------1

D

escr

ibe

the

uses

of t

echn

ical

ana

lysi

s.i

~iSC.. U.

ssth

e d

iffer

ent s

tock

mar

ket

char

ts a

nd e

xpla

in h

ow

to

Inte

rpre

t It

­ --------~~~~~~~------------------~----------------------------~

Pro

vide

adv

ice

to c

lient

s w

ith

resp

ect

to t

he d

iffer

ent

port

folio

the

ory

mod

els

empl

oyed

in p

ortf

olio

an

alys

is.

Pro

vide

adv

ice

to c

lient

s w

ith

resp

ect

to t

echn

ical

ana

lysi

s.

I ----------~

Pro

vide

adv

ice

inte

rmed

iary

ser

vice

s to

cl

ient

s w

ith r

espe

ct t

o de

rivat

ive

inst

rum

ents

in t

he

equi

ty m

arke

t.

wha

t a

futu

res

cont

ract

is a

nd i

ndic

ate

its c

hara

cter

istic

s as

soci

ated

ris

ks.

---:---:----:-----,:-:--------:-----------1

1 o

ptim

isin

g in

vest

men

t re

turn

s

the

diff

eren

ce b

etw

een

hedg

ing

and

spec

ulat

ing.

Off

er in

vest

men

t ad

vice

on

the

appr

opria

te c

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e o

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Page 15: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

61

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pos

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Page 16: Financial advisory and Intermediary Services Act: Determination … · 2015. 10. 1. · forex market by market making. ~xplain . the impact of standardisation ... twenty-four hours

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31

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