FINRA and the University of Reading Capital Markets, Regulation and Compliance Programmes DIPLOMA AND SHORT COURSES 2008 GLOBAL EDUCATION FOR CAPITAL MARKETS, REGULATION AND COMPLIANCE PROFESSIONALS
Diploma in Capital Markets, Regulation and Compliance FINRA and the ICMA Centre at the University of Reading offer a series of educational programmes for regulation and compliance professionals. Among these offerings is the Diploma in Capital Markets, Regulation and Compliance, a practical, high-quality programme that has been developed with in-depth participation from leading investment banks, legal professionals and other industry representatives who understand the key issues facing capital market professionals. This unique programme helps participants to deepen their knowledge and skills in capital markets, products and key regulatory and compliance areas. Composed of a series of short courses and a final week long capstone course, the Diploma programme focuses on UK regulation and compliance, set in the context of the relevant European Union (EU) Directives and international standards and best practices. Expert lecturers and speakers. Diploma courses feature a variety of industry speakers, including capital markets and compliance practitioners, regulators, lawyers and other capital market industry professionals from the UK and elsewhere, as well as representatives from the University of Reading and FINRA. Input from Linklaters and other industry leaders. Diploma courses are developed in close consultation with the leading international law firm Linklaters, as well as global securities and investment companies. Pre-course reading and coursework draw from Linklaters seasoned legal and regulatory expertise to meet both industry needs and the educational objectives of the Diploma programme. Diploma courses are practical, timely and relevant: The curriculum for each course is developed by Linklaters and reviewed by a committee composed of three to four subject matter experts from global investment banks Content is dynamic and updated regularly to include recent and forthcoming developments Extensive use is made of case studies to deliver content via a practical, hands-on learning approach Speakers are chosen based on their knowledge and depth of expertise in capital markets, regulation and compliance issues Discussion affords delegates the opportunity to interact with one another as well as learn from leading industry professionals who present course content Qualified for Continuing Professional Development credits. Each two-day course is accredited for 12 hours Continuing Professional Development (CPD) credit under the UK Law Society s CPD scheme. The Diploma programme is ideal for: Compliance professionals on a management track High potential regulatory, legal and compliance staff Management and business professionals with compliance responsibilities Regulators and exchange staff The Diploma programme is designed to accommodate delegates who wish to enhance their education while continuing full-time employment. All courses are also offered individually for delegates who wish to increase their knowledge and skills in specific areas without enrolling in the full Diploma programme. Courses may be taken in any order. The Diploma can be completed in as little as one year or spread across three consecutive years. Note: Coursework assumes delegates have some experience in regulation and compliance or capital markets. 2
Diploma Programme Requirements Delegates who successfully complete the following courses and pass all related assessment exercises will receive the FINRA and University of Reading Diploma in Capital Markets, Regulation and Compliance: Markets, Instruments and Financial Structures (two-day course) Principles of Regulation and Compliance (two-day course) Conflicts of Interest and Ethics (two-day course) Four additional two-day courses from among the following eight topics: European Regulation Evolution, Systems and Controls, Anti-Money Laundering, Structured Products, Hedge Funds, Supervision and Oversight, Market Abuse and Investment Banking Advisory Advanced Capital Markets Regulation and Compliance (week long capstone course) Individual Courses Diploma courses are also available to delegates who do not wish to participate in the full Diploma programme but still would like to enhance their career and management potential by increasing their regulatory and compliance knowledge on specific topics. Delegates may enrol in any of the courses below without an obligation to complete the full Diploma programme. All delegates will receive a certificate of completion after attending each course. Programme Calendar Dates Topic Location 28-29 January 2008 Markets, Instruments and Financial Structures University of Reading 30-31 January 2008 Principles of Regulation and Compliance University of Reading 27-28 February 2008 European Regulation Evolution London 6-7 March 2008 Systems and Controls London 8-9 April 2008 Anti-Money Laundering London 12-13 May 2008 Conflicts of Interest and Ethics London 2-3 June 2008 Markets, Instruments and Financial Structures University of Reading 16-17 June 2008 Structured Products London 7-8 July 2008 Hedge Funds London 15-16 September 2008 Supervision and Oversight London 13-14 October 2008 Market Abuse London 10-11 November 2008 Investment Banking Advisory London 1-5 December 2008 Advanced Regulation and Compliance Capstone Course University of Reading 3
Short Courses Markets, Instruments and Financial Structures* Date 28-29 January 2008 or 2-3 June 2008 CPD Credit 12 hours Venue ICMA Centre, University of Reading Course Code Jan 08: FIN08DF01001 Jun 08: FIN08DF01002 This course offers an overview of the structure of the finance industry and international capital markets, including key features of capital market instruments and risk management techniques. The course also provides regulatory and compliance professionals with the product knowledge they need to perform everyday duties. Trading simulation exercises using the state-of-the-art simulated dealing room at the ICMA Centre allows delegates to experience market mechanics. Institutions and markets The functions and business models of investment/commercial banks Funds and alternative asset management models Debt, equity and derivative products Risk management, hedging and speculation Dealing and investment simulations using the ICMA Centre s simulated dealing room Principles of Regulation and Compliance* Date 30-31 January 2008 Duration CPD Credit Venue 2 days 12 hours Course Code ICMA Centre, University of Reading FIN08DF08001 This course offers a foundation in the UK regulatory structure, including key aspects of the UK financial services legislation and UK Financial Services Authority (FSA) rules and regulations impacting investment banks. The course prepares delegates for the detailed aspects of rules and regulations covered in other short courses. The theory of regulation and UK legal structures The scope of UK regulation and regulatory objectives Key areas regulated by the UK FSA including: - Client relationships - Prudential supervision - Systems and controls - Market regulation and conduct * Required course for completion of the Diploma. * Required course for completion of the Diploma. 4
Short Courses European Regulation Evolution Date 27-28 February 2008 Systems and Controls Date 6-7 March 2008 Duration 2 days Duration 2 days CPD Credit 12 hours CPD Credit 12 hours Venue London Venue London Course Code FIN08DF02001 Course Code FIN08DF03001 This course reviews the evolution of European capital markets regulation in the context of the development of the European Union Financial Services Action Plan. Tutorials and practical case studies guide delegates through the key EU Directives and legislation that are applicable to primary and secondary markets and services and market integrity, including the Market Abuse Directive and the Markets in Financial Instruments Directive (MiFID). The course also looks at the fundamentals of prudential supervision and the issues of conducting business on a cross border basis in Europe. Economic and business history Understanding the EU legislative and consultation process Primary markets: Prospectus Directive and financial promotions Transparency Directive, Undertakings for Collective Investments in Transferable Securities (UCITS) Directive Prudential supervision and cross border services: Banking Consolidation Directive, Investment Services Directive / MiFID Capital Requirements Directive, E-Commerce Directive Services and secondary markets, MiFID and Market Abuse Directive This course examines the systems and controls and organisational requirements of MiFID and focuses particularly on the FSA s approach to implementing systems and controls in the UK. Tutorials, case studies and discussion of previous FSA Enforcement Actions guide delegates through the FSA requirements and discuss practical implementation of FSA s rules relating to systems and controls. In particular, the course focuses on the role of the Compliance Department, and on best practices for implementing systems and controls within the compliance function. History and FSA regulatory policy Senior management responsibilities and apportionment and oversight The key components of FSA systems and controls; organisation, employees, outsourcing, risk assessment The approved persons regime and training and competence The role of the Compliance Department and compliance systems and controls International comparators 5
Short Courses Anti-Money Laundering Date 8-9 April 2008 CPD Credit 12 hours Course Code FIN08DF04001 This course reviews the anti-money laundering and anti-terrorist financing requirements of the EU Money Laundering Directive and focuses particularly on UK legal and regulatory requirements. Practical case study work highlights the role of the Money Laundering Reporting Officer, as well as best practices for implementing anti-money laundering systems and controls and risk based approaches. EU Money Laundering Directive, UK Proceeds of Crime Act 2002 and Money Laundering Regulations 2007 Managing money laundering risk: implementing a risk based approach Client identification, Know Your Customer and monitoring Suspicious activity reporting Anti-money laundering systems and controls Conflicts of Interest and Ethics* Date 12-13 May 2008 CPD Credit 12 hours Course Code FIN08DF06001 This course examines conflicts in today s financial services industry and tools for managing them. It focuses on relevant UK laws and the requirements of FSA under MiFID. Delegates focus on the practical implementation of FSA s rules, including structural and documentary solutions and the management of specific conflicts, such as those that may arise around investment research. The course also examines case studies involving conflicts and ethical issues in the industry in particular, a Compliance Department s approach to them. Application of UK Law, FSA and MiFID rules in identifying and managing conflicts Structural and documentary solutions including information barriers, control rooms, global watch and restricted lists Specific conflicts including inducements, soft commissions, new issue allocations and investment research Establishment and maintenance of a conflicts policy and management programme Regulatory ethics confronting the financial services industry * Required course for completion of Diploma. 6
Short Courses Structured Products Date 16-17 June 2008 CPD Credit 12 hours Course Code FIN08DF07001 This course examines the regulatory issues surrounding the creation of structured products by investment banks and marketing for distribution to retail investors. The course covers issues related to marketing and promotion materials; client agreements; dealing with distributors and intermediaries; and duties owed to investors. Case studies discuss the new products approval process and regulatory issues surrounding marketing and distribution. Marketing: licensing and solicitation considerations, the Prospectus Directive and financial promotions Client relationships: dealing with distributors and intermediaries Client agreements, risk disclosures and managing legal risks Advising clients: suitability, appropriateness, Treating the Customer Fairly Compliance practicalities: managing conflicts, monitoring and supervision, new product approvals Hedge Funds Date 7-8 July 2008 CPD 12 hours Course Code FIN08DF11001 This course provides an overview of the hedge fund industry and considers the key regulatory issues and challenges for compliance officers. The course includes hedge fund legal structures and infrastructures, key hedge fund strategies and terminology, laws and regulations impacting the establishment and marketing of hedge funds and the UK regulatory perspective. Case studies discuss examples of legal and regulatory issues encountered by hedge funds. Introduction to hedge funds Typical fund structures, documentation and role of key service providers Hedge fund strategies and marketing International regulation and regulatory developments UK regulatory perspective Investment banking compliance issues, including conflicts management 7
Short Courses Supervision and Oversight Date 15-16 September 2008 CPD Credit 12 hours Course Code FIN08DF09001 This course addresses the supervision of firms by the FSA, the approach and tools used, the implications for regulatory risk management and the supervision of employees and business operations. Case studies and discussion of FSA Enforcement Actions and Guidance steer delegates through the FSA requirements and elaborate on practical implementation of FSA s rules, including topical issues. Case studies are used to demonstrate the role and impact of supervisory systems on regulatory issues. FSA s approach to supervision of firms and risk assessment FSA tools for supervising firms Implementing FSA supervisory requirements: the investment banking approach Role of senior management in business supervision Supervision and surveillance techniques Supervision: a US comparison Market Abuse Date 13-14 October 2008 CPD Credit 12 hours Course Code FIN08DF05001 This course examines the insider dealing and market abuse requirements of UK law and the EU Market Abuse Directive and focuses on the FSA s approach to implementing the Code of Market Conduct and market abuse systems and controls. Delegates review the UK legal and FSA market abuse offences and through case studies examine and discuss examples of FSA enforcement actions. Overview of the EU and UK Market Abuse regime, including the UK Criminal Justice Act 1993 (Insider Dealing) Insider dealing, improper disclosure and misuse of information offences False or misleading impression offences Securing prices and market distortion offences General standards of conduct, systems and controls and compliance implementation 8
Short Course Week Long Capstone Course Investment Banking Advisory Date 10-11 November 2008 CPD Credit 12 Hours Cost 750 Course Code FIN08DF12001 This course examines regulatory and compliance issues arising from investment banking advisory activities, including the raising of capital (primary and secondary capital markets issues); marketing and distribution of new issues; mergers and acquisitions and regulatory issues relating to the management of confidential information; information barriers; conflicts and market abuse. Case studies provide delegates with opportunities to discuss the practical implementation of compliance in various investment banking advisory scenarios. Primary and secondary capital markets: capital raising strategies and techniques, marketing and distribution Mergers and acquisitions: UK Takeover Panel Advisory compliance: conduct of business rules, managing confidential information, information barriers and conflicts Advisory compliance: Market Abuse Regime International offerings and distributions: the US perspective Advanced Capital Markets Regulation and Compliance Date 1-5 December 2008 Duration 5 days CPD Credit 30 hours + evening discussion groups Venue ICMA Centre, University of Reading Cost 2,000 Course Code FIN08DF10001 This one-week course addresses a series of advanced-level topics that build on previous courses and is designed for compliance professionals who desire to further their career in compliance management. This is the capstone course of the Diploma programme. It is strongly recommended that delegates working toward the full Diploma complete this course at the end or towards the end of the programme. The course includes practical presentations by senior compliance officers and case studies covering: Role of the Compliance Department Challenges of compliance documentation and records management Compliance risk assessment Compliance advisory Compliance culture, training and competence Designing and implementing a compliance monitoring programme Conducting business and desk-based reviews IT for compliance monitoring and surveillance Managing regulatory relationships, visits and inspections Crisis management: internal investigations, consequential actions and legal issues Forensic investigations FSA enforcement process 9
Course Information Course Preparation Each two-day course requires approximately 8-10 hours of pre-course reading. An optional assessment exercise (1.5 hours) is administered at the conclusion of each course. The week long capstone course requires approximately 12 hours of pre-course reading. An optional assessment exercise (3 hours) is administered at the conclusion of the course. Candidates must take and pass all assessment exercises to earn credit toward the Diploma. Fee Information Two-day course: 750 Capstone course: 2000 Discounts are applied for delegates enrolled in the full Diploma programme, reducing the cost of the full programme to 5,700. Discounts are off-set against payments for final courses. Group discounts are available for organisations that wish to pay in advance for multiple delegates for one or several courses. All courses are VAT exempt. Registration To register for any of the Diploma courses, please visit www.icmacentre.ac.uk/exec_registration, where you may apply online. Full payment is due at the time of registration. Refunds for registration, less a 150 processing fee, will be granted to written requests received 14 or more days prior to the start date of the programme. No refunds will be given after this date. Note: Delegates can register for individual courses without any obligation to complete the full Diploma programme. Delegates working toward the full Diploma can complete the programme in as little as one year, or may spread their coursework across a maximum time period of three years. Course Venues London University of Reading 35 New Broad Street ICMA Centre, Whiteknights London EC2M 1NH Reading RG6 6BA More information For more information on FINRA and the University of Reading education and training programmes, please visit www.icmacentre.ac.uk/finra. If you have additional questions regarding the programmes, please call +44 (0)207 194 8455 or contact us at international@finra.org. FINRA and the ICMA Centre at the University of Reading also offer: An MSc (Master of Science) degree in Capital Markets, Regulation and Compliance designed for those who wish to acquire a deep understanding of these important issues and who are likely to move towards a career in the regulation and compliance sectors. The MSc degree is available on a full-time, flexible and distance learning basis. A week long Certificate programme in Capital Markets, Regulation and Compliance aimed at all capital market professionals seeking an introduction to regulation and compliance to be presented in various regions around the world throughout the year. Dates and locations for upcoming certificate programmes are available at www.icmacentre.ac.uk/finra/certificate. Successful completion of this programme exempts Diploma delegates from the Markets, Instruments and Financial Structures course. A three-day programme in Compliance and Regulation aimed at capital markets professionals in developed markets seeking a more in-depth examination of key compliance issues on both a global and local basis. Successful completion of this programme exempts Diploma delegates from both the Markets, Instruments and Financial Structures course and the Principles of Regulation and Compliance course. For more information about these programmes, visit www.icmacentre.ac.uk/finra or contact us at +44 207 194 8455 or international@finra.org. 10
Offered by: FINRA and FINRA International FINRA, the Financial Industry Regulatory Authority, is the largest nongovernmental regulator for all securities firms doing business with the US public. Created in 2007 through the consolidation of NASD and NYSE Member Regulation, FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. FINRA touches virtually every aspect of the securities business from registering and educating all industry participants to examining securities firms; writing and enforcing rules and the federal securities laws; informing and educating the investing public; providing trade reporting and other industry utilities; and administering the largest dispute resolution forum for investors and registered firms. FINRA International, a department of FINRA headquartered in London, works with regulatory bodies around the world to build strong regulatory and compliance functions as well as education and training programmes in a local context. These efforts build on FINRA's day-to-day regulatory work, clients' needs and circumstances, and the experience and expertise gained from FINRA International's work in both developed and developing markets. For more information, visit our Web site at www.finra.org ICMA Centre, University of Reading The ICMA Centre, University of Reading has an international reputation for providing quality undergraduate, postgraduate and executive education tailored to the capital markets industry. The ICMA Centre s success is based not only on the integration of applied finance theory and industry specific training but also its considerable professional and academic expertise, and strong links with companies and trade associations in the global finance industry. Established in 1991 with funding provided by the International Capital Market Association (ICMA) in Zurich, the Centre is housed in a purpose-built modernist building with state-of-the-art facilities including two dealing rooms. Due to the great success of the Centre and growing demand for their programmes from a worldwide audience ICMA are investing a further 5million expansion to the building which will include an additional 50 seat dealing room, 170 seat lecture theatre as well as new seminar rooms and dedicated research area. Developed with: Linklaters Linklaters is an international law firm specialising in all types of financial, company and commercial transactions on a global basis. Its Financial Markets Group, which is responsible for the firm s participation in the Diploma programme, specialises in all aspects of regulation, in a large number of jurisdictions, as they apply to the investment banking, broker-dealer and asset management industries. 11
FINRA New Broad Street House 35 New Broad Street London, EC2M 1NH United Kingdom T: +44 (0)207 194 8450 www.finra.org ICMA Centre University of Reading Whiteknights, PO Box 242 Reading RG6 6BA United Kingdom T: +44 (0)118 378 8239 www.icmacentre.ac.uk 2007. FINRA and the University of Reading. All rights reserved.