The Association of Corporate Treasurers

An introduction to:The Hungarian Treasury Club

James Lockyer, Director of Education and International DevelopmentNovember 2011

What is corporate treasury?

• It is the interface between the company and financial markets• It deals with three critical questions in finance:

– How do we decide what to invest in?

– How do we raise the money to make those investments?

– How do we control risk in the organisation?

Which can be summed up as

– What is our financial strategy and policy?

• The finance director is responsible for advising the board– The treasurer is responsible for advising the FD

– But often briefs the board directly

• And it has major operational responsibilities too.

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Role and profile of treasurers

Role• Principal tasks broadly defined

under five core treasury elements:

− Capital markets and funding

− Cash and liquidity management

− Corporate financial management

− Risk management

− Treasury operations and controls

Profile“One day I'm a banker, the next I'm

an accountant and then I'm a trader. Still I’m a

corporate treasurer.”

• The financial crisis has raised profile of treasurers

• UK Government report flagged training, transparency and challenge as constituting good treasury practice.

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ACT in 2011

• Members and students in 70 countries– 4,200+ members – 20% outside the UK– 2,400+ students – 40% outside the UK• c70% of members and students already have a finance

qualification (eg ACA, CIMA, ACCA)• Highly respected within the UK– 87% of FTSE 100 have >8 ACT members– 53% of FTSE 350 have >1 ACT member• Now supporting – Career treasurers, and – Career finance professionals – CFOs, financial controllers,

internal auditors etc.422/04/23

• Tuition and/or events in Germany, Hong Kong, India, Ireland, Netherlands, Russia, Singapore, South Africa, UAE and UK

• Active member of International and European treasury groupings (IGTA and EACT)

• Providing education support to 8 national treasury associations around the world

• Middle East network launched in 2008 www.actmiddleeast.org

ACT – international presence

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• Committed to developing ACT’s networks and support for members and students overseas, in particular– Europe

– Hong Kong

– India

– Middle East

– North America

– Singapore

– South Africa

• In raising the profile of ACT overseas we can increase recognition of professional treasury qualifications and in turn the profession.

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ACT – promoting international professional treasury standards

• Treasury Associations:

• EACT, IGTA & Members (CAT (Czech), SAF (Slovakia), AITI (Italy), IACCT (Hong Kong), ACTSA (South Africa), IACT (Ireland), ACTS (Singapore)

• Accountancy Bodies:

• ICAEW, ACCA, CIMA, CIPFA, HKICPA, ICPAS, SAICA, IFAC

• Regulators / Government:

• FRC, FSA, Bank of England, Treasury, European Commission, IASB (and EFRAG), UK Financial Reporting Council (FRC)

• Other professional bodies:

• ICSA, IIA, IRM

Who do we work with?

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Why treasury qualified?

You wouldn’t trust your key legal decisions to someone who isn’t a qualified lawyer, so – whatever the size of your organisation – why entrust your treasury, risk and corporate finance to someone who isn’t a qualified treasury professional?

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ACT qualifications

AMCT DiplomaModular syllabus comprising 3 stages

MCT Advanced Diploma

Select 2 electives to complete AMCT or take as individual certificatesAMCT Stage 3

Compulsory for AMCT or can be taken as individual certificates

AMCT Stage 2

Certificate in International Treasury Management – CertITM

Certificate in International Treasury Management Public Finance –

CertITM-PF

Advanced treasury knowledge and strategic decision making – proven ability and expertise

Full Member of the ACT

Technical treasury competenceacknowledged standard

Associate Member of the ACT

Specialist skills

ACT Faculty Member

Broad practical understanding of treasury

ACT Faculty Member

Standard route to ACT qualifications and membershipFast-track route and exemptions

Shorter CertCFF paper and exam for AMCT Fast-Track eligible accountants

AMCT entry point for qualified accountants from IFAC member bodies and those with other relevant qualifications

Direct entry with relevant finance qualification or senior experience

Level of ability

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AMCT Stage 1

CertICMCash

Management

CertRMRisk

Management

CertCFFCorporate Finance

& Funding

CertFMMFinancial Maths

& Modelling

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Certificate in Financial Fundamentals for Business – CertFin

Can be taken as part of AMCT or as individual certificate

Fundamentals of financial and management accounting, economics, corporate tax and law for business

ACT Faculty Member

Qualified accountants are exempt from AMCT stage 1

Exemptions available with other relevant qualifications

The voice of corporate treasury

Representing the corporate user of financial services to regulators and standard setters and in developing market practices. A few recent examples

OTC derivative regulation in Europe - Successfully argued for carve out for non financial companies

European Financial Transaction Tax (FTT) - Political momentum is increasing for a new FTT in Europe

Supply Chain Finance (SCF) - Chaired working group set up by the Bank of England.

Market Abuse Directive - Lobbying for EU to adopt same high standards

Credit rating methodologies - Responded to consultations from rating agencies on changes to methodologies for rating banks and for rating Money market Funds

Independent Commission on Banking (UK)

• Submitted evidence to the Vickers review

For more go to http://www.treasurers.org/technical

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• The Treasurer magazine and Middle East Treasurer• Readership >20,000, 49% outside the UK

• Editorial leadership – by treasurers, for treasurers

• Specialist supplements/reference books

• Monthly e-newsletter

• Handbooks• International Handbook – 40% distributed outside UK

• Asia Handbook – regional specific content • Flagship Events

• ACT Annual Conference• ACT Middle East Annual Conference• talkingtreasury – the international thought-leadership series• Annual Dinner, London

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ACT – promoting international treasury standards

The Association of Corporate Treasurers

jlockyer@treasurers.orgwww.treasurers.org