Systems of financial analysts training
A review of different systems of financial analysts training which exist in European countries and the United States of America is proposed. MBA diploma and professional qualification such as Chartered Financial Analyst designation (CFA) in the United States of America, or Certified International Inves...
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Інститут математики НАН України
2007
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| Назва журналу: | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| Цитувати: | Systems of financial analysts training / M. Moklyachuk, R. Yamnenko, O. Borysenko // Theory of Stochastic Processes. — 2007. — Т. 13 (29), № 4. — С. 170–176. — Бібліогр.: 5 назв.— англ. |
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Digital Library of Periodicals of National Academy of Sciences of Ukraine| _version_ | 1859464037514870784 |
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| author | Moklyachuk, M. Yamnenko, R. Borysenko, O. |
| author_facet | Moklyachuk, M. Yamnenko, R. Borysenko, O. |
| citation_txt | Systems of financial analysts training / M. Moklyachuk, R. Yamnenko, O. Borysenko // Theory of Stochastic Processes. — 2007. — Т. 13 (29), № 4. — С. 170–176. — Бібліогр.: 5 назв.— англ. |
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| description | A review of different systems of financial analysts training which exist in European countries and the United States of America is proposed. MBA diploma and 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, are required for financial analysts to get certain level within a firm. We consider in details qualification levels that are offered by the most famous institutions such as Faculty of Actuaries and Institute of Actuaries (UK), Chartered Financial Analyst Institute (USA), Association of Certified International Investment Analysts, Association of Corporate Treasurers (UK). In Ukraine an equivalent international qualification can be obtained in the Training Center for Actuaries and Financial Analysts.
|
| first_indexed | 2025-11-24T05:33:10Z |
| format | Article |
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Theory of Stochastic Processes
Vol.13 (29), no.4, 2007, pp.170–176
MIKHAIL MOKLYACHUK, ROSTYSLAV YAMNENKO AND
OLEKSANDR BORYSENKO
SYSTEMS OF FINANCIAL ANALYSTS TRAINING
A review of different systems of financial analysts training which exist
in European countries and the United States of America is proposed.
MBA diploma and professional qualification such as Chartered Fi-
nancial Analyst designation (CFA) in the United States of America,
or Certified International Investment Analyst designation (CIIA) in
Europe and Asia, are required for financial analysts to get certain
level within a firm. We consider in details qualification levels that
are offered by the most famous institutions such as Faculty of Actu-
aries and Institute of Actuaries (UK), Chartered Financial Analyst
Institute (USA), Association of Certified International Investment
Analysts, Association of Corporate Treasurers (UK). In Ukraine an
equivalent international qualification can be obtained in the Training
Center for Actuaries and Financial Analysts .
1. Introduction
Financial analysts, also called securities analysts and investment ana-
lysts, work for banks, insurance companies, mutual and pension funds, se-
curities firms, and other businesses, helping these companies or their clients
make investment decisions.
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 usu-
ally based on the income statement, which reports on the company’s
results of operations.
2. Solvency – its ability to pay its obligation to debtors and other third
parties in the long-term.
Invited lecture.
2000 Mathematics Subject Classifications. 97B40, 91B99.
Key words and phrases. Financial analyst, training system, Training Center for Ac-
tuaries and Financial Analysts.
170
SYSTEMS OF FINANCIAL ANALYSTS TRAINING 171
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 busi-
ness. 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.
2. Education
It is often required for analysts to earn an MBA or a professional qualifi-
cation such as Chartered Financial Analyst designation (CFA) in the USA,
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).
2.1. Faculty of Actuaries and Institute of Actuaries (UK) [1]
Qualification by the Faculty consists of a combination of exams and
courses. The exams are split into four stages:
– Core Technical stage (CT);
– Core Applications stage (CA);
– Specialist Technical stage (ST);
– Specialist Applications stage (SA).
In addition to exams and courses, it is required that the candidate has
spent at least three years working as an actuary, and be of 23 years of
age, for him or her to qualify as a “Fellow of the (Institute/Faculty) of
Actuaries”.
In the Core Technical stage there are nine subjects:
– CT1 Financial Mathematics; – CT2 Finance and
– CT3 Probability and Financial Reporting;
Mathematical Statistics; – CT4 Models;
– CT5 Contingencies; – CT6 Statistical Methods;
– CT7 Economics; – CT8 Financial Economics;
– CT9 Business Awareness Module.
Each of CT1–CT8 is examined by one paper of three hours duration.
CT9 Business Awareness Module involves a 2-day residential course, with
pre-course study and a post-course test, that has been designed to help peo-
ple 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
172 M. MOKLYACHUK, R. YAMNENKO, O. BORYSENKO
equip themselves for lifelong learning. The module consists of internet-
based study, attendance at a two day course and internet-based assessment.
The Core Applications section consists of two exams (CA11 Assets;
CA12 Liabilities and asset-liability management) and a modeling course,
CA2, that focus on the application of concepts learned, especially to insur-
ance companies. This includes the communications model, CA3, which tests
the candidate on their ability to communicate complex actuarial concepts
to others. Upon successful completion of both the CT and CA subjects a
candidate is said to be an Associate of the (Institute/ Faculty) of Actuaries.
The Specialist Technical section represents the first time the candidate
has a choice of which exams to take. The candidate chooses two from the
various actuarial specialist subjects:
– 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.
The Specialist Applications section allows the candidate to choose one
area for which they take the SA paper and attain full Fellowship:
– SA0 Research Dissertation Specialist Applications;
– SA1 Health and Care Specialist Applications;
– SA2 Life Insurance Specialist Applications;
– SA3 General Insurance Specialist Applications;
– SA4 Pensions and other Benefits Specialist Applications;
– SA5 Finance Specialist Applications;
– SA6 Investment Specialist Applications.
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.
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.
2.2. Chartered Financial Analyst Institute (USA) [2]
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 governing their professional conduct.
The CFA designation is a qualification for people engaged in the financial
and investment sector.
The basic requirements for participation in the CFA program include
SYSTEMS OF FINANCIAL ANALYSTS TRAINING 173
holding or being in the final year of a four-year university degree (or in-
ternational 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 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 ap-
plications of the tools and inputs (including economics, financial statement
analysis, and quantitative methods) in asset valuation.
The Level III study program emphasizes portfolio management and in-
cludes 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. The Level II and III exams are admin-
istered once a year. 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.
The curriculum for the CFA program includes:
– Ethics and Professional Standards;
– Quantitative Methods;
– Economics;
– Financial Statement Analysis;
– Corporate Finance Analysis of Investments;
– Portfolio Management and Analysis.
2.3. Association of Certified International Investment Analysts [3]
Certified International Investment Analyst (CIIA) is a designation of-
fered by the Association of Certified International Investment Analysts
(ACIIA) to professional financial analysts; candidates may be financial an-
alysts, 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 spe-
cific 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 An-
alysts, or Federations of Financial Analysts Associations including Ukraine.
The Common Knowledge Exams are divided into two levels – the Foun-
dation and Final Level. Examined are essential skills and knowledge re-
quired for professionals working in investment markets common in all coun-
tries. Graduates who already have relevant qualifications may be exempt
from the Foundation Level exams.
174 M. MOKLYACHUK, R. YAMNENKO, O. BORYSENKO
The Foundation Level Exams cover the following subjects:
Exam 1 – Equity valuation and analysis;
– Financial accounting and statement analysis;
– Corporate Finance;
Exam 2 – Fixed income valuation and analysis;
– Economics;
Exam 3 – Derivative valuation and analysis;
– Portfolio management.
The Final Level Exams are the following:
Exam 1 – Corporate finance;
– Economics;
– Financial accounting and statement analysis;
– Equity valuation and analysis;
Exam 2 – Derivative valuation and analysis;
– Portfolio management.
The Common Knowledge Exams can be conducted in Chinese, English,
French, German, Italian, Japanese, Korean, Polish, Portuguese, Russian
and Spanish.
The National Exam covers:
– Regulation; – Financial statements analysis;
– National Market structures and instruments.
2.4. The Association of Corporate Treasurers(UK) [4]
The Association of Corporate Treasurers (ACT) is the international
body for finance professionals working in treasury, risk and corporate fi-
nance. Through the ACT training personal come together as practitioners,
technical experts and educators in a range of disciplines that underpin the
financial security and prosperity of an organization. The ACT defines and
promotes best practice in treasury and makes representations to govern-
ment, 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 qual-
ifications in treasury, risk and corporate finance. The membership qualifi-
cations, recognized as the global benchmark for treasury education, ensure
that the ACT represents a highly qualified community of professionals.
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:
SYSTEMS OF FINANCIAL ANALYSTS TRAINING 175
– AMCT Diploma in Treasury, Risk and Corporate Finance;
– MCT Advanced Diploma in Treasury, Risk and
Corporate Finance, and the Certificate qualifications.
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 analyzing the principles of corporate treasury.
An AMCT students study is made up of seven papers, four Foundation
Papers and three chosen Associate Papers.
Foundation Papers:
– Financial and Management Accounting; – Corporate Taxation;
– Economics and Statistical Analysis; – Business Law.
Associate Papers:
– Liquidity Management; – Risk Management;
– Corporate Finance and Funding; – Corporate Finance
and Funding FastTrack.
– International Cash Management (Certificate);
– Financial Mathematics and Modelling (Certificate);
– Risk Management for Pensions (Certificate).
Certificate papers may be taken independently of the AMCT qualifica-
tion and are recognised as qualifications in their own right.
The Certificate in Financial Mathematics and Modelling is designed to
cover three critical areas of financial risk mathematics: money market cal-
culations, options and portfolio management. The Certificate in Financial
Mathematics and Modelling is designed to cover three critical areas of fi-
nancial risk mathematics: money market calculations, options and portfolio
management. The Certificate Paper in Risk Management for Pensions is
designed to enable you to understand, analyse and manage the risks asso-
ciated with company pension funds.
2.5. The Training Center for Actuaries and Financial Analysts
(Ukraine) [5]
The Training Center for Actuaries and Financial Analysts started its
activity on the base of Kyiv National Taras Shevchenko University in 2006.
The Training Center was organized within the framework of EU Tem-
pus Project IB-JEP-25054 under auspices of consortium of EU Universi-
ties, State Commission for Regulation of the Financial Services Markets of
Ukraine and Society of Actuaries of Ukraine. The strategic goal of Train-
ing Center is assistance in development of actuarial profession in Ukraine
through implementation the system of actuarial training on the base of
advanced teaching methods. The employees of insurance companies, pen-
sion funds, banks, and governmental agencies as well as postgraduate and
176 M. MOKLYACHUK, R. YAMNENKO, O. BORYSENKO
graduate students can attend these courses and at this center and prepare
themselves for qualifying exams for Ukrainian actuaries have.
Educational programs of Training Center are adapted to the British
Actuarial examination system and correspond to EU standards of actuarial
training. Very fruitful contacts are established with Institute of Actuaries
and Faculty of Actuaries [1] in United Kingdom. An Examination Center
for British actuarial exams was created on the base of the Training Center
at Kyiv National Taras Shevchenko University. The first group of Ukrainian
trainees passed exams in September 2006.
Highly qualified staff of professors and lecturers from the Department of
Probability Theory and Mathematical Statistics of Kyiv University delivers
the courses in the Core Technical (CT) subjects according British actuarial
training system:
– CT1 Financial Mathematics; – CT2 Finance and
– CT3 Probability and Financial Reporting;
Mathematical Statistics; – CT4 Models;
– CT5 Contingencies; – CT6 Statistical Methods;
– CT8 Financial Economics.
Training Center has a good library of actuarial literature, lecture halls
and computer equipment. All trainees are provided by necessary teaching
materials and have possibility to use library of actuarial literature, which
has newest books on actuarial, financial mathematics, stochastic and statis-
tics. The organization of training process is flexible. Lecture and practical
studies are delivered in specially equipped computer classes at Kyiv Uni-
versity. These studies are combined with elements of distance education.
The realistic timetable for the delivery of courses, which is appropriate for
the needs of trainees from Kyiv and regional-based insurance companies are
created.
References
1. http://www.actuaries.org.uk
2. http://www.cfainstitute.org
3. http://web.aciia.org
4. http://www.treasurers.org
5. http://www.mechmat.univ.kiev.ua/probability/Actuarial Center/
Department of Probability Theory and Mathematical Statistics,
Kyiv National Taras Shevchenko University, Kyiv, 01033, Ukraine
E-mail addresses: mmp@univ.kiev.ua; yamnenko@univ.kiev.ua;
odb@univ.kiev.ua
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| id | nasplib_isofts_kiev_ua-123456789-4520 |
| institution | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| issn | 0321-3900 |
| language | English |
| last_indexed | 2025-11-24T05:33:10Z |
| publishDate | 2007 |
| publisher | Інститут математики НАН України |
| record_format | dspace |
| spelling | Moklyachuk, M. Yamnenko, R. Borysenko, O. 2009-11-24T15:33:55Z 2009-11-24T15:33:55Z 2007 Systems of financial analysts training / M. Moklyachuk, R. Yamnenko, O. Borysenko // Theory of Stochastic Processes. — 2007. — Т. 13 (29), № 4. — С. 170–176. — Бібліогр.: 5 назв.— англ. 0321-3900 https://nasplib.isofts.kiev.ua/handle/123456789/4520 A review of different systems of financial analysts training which exist in European countries and the United States of America is proposed. MBA diploma and 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, are required for financial analysts to get certain level within a firm. We consider in details qualification levels that are offered by the most famous institutions such as Faculty of Actuaries and Institute of Actuaries (UK), Chartered Financial Analyst Institute (USA), Association of Certified International Investment Analysts, Association of Corporate Treasurers (UK). In Ukraine an equivalent international qualification can be obtained in the Training Center for Actuaries and Financial Analysts. en Інститут математики НАН України Systems of financial analysts training Article published earlier |
| spellingShingle | Systems of financial analysts training Moklyachuk, M. Yamnenko, R. Borysenko, O. |
| title | Systems of financial analysts training |
| title_full | Systems of financial analysts training |
| title_fullStr | Systems of financial analysts training |
| title_full_unstemmed | Systems of financial analysts training |
| title_short | Systems of financial analysts training |
| title_sort | systems of financial analysts training |
| url | https://nasplib.isofts.kiev.ua/handle/123456789/4520 |
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