levelling the playing field in international trade finance david morrish [email protected]
TRANSCRIPT
Levelling the Playing Field in International Trade Finance
David Morrish [email protected]
www.ifslearning.ac.uk
Levelling the Playing Field
Not too level…
…needs a bit of work!
Very Level!
© ifs University College 2013
As you will have seen from the selection of feedback to our 2014 survey as you entered the room respondents are from all over the world. ifs University College International Trade Finance Qualifications are studied in over 80 countries
International Trade Qualifications Survey 2014
ALGERIA CZECH REPUBLIC JORDAN NIGERIA SUDAN
ARGENTINA DENMARK KAZAKHSTAN OMAN SWEDEN
AUSTRALIA ECUADOR KENYA PAKISTAN SWITZERLAND
AZERBAIJAN EGYPT KUWAIT POLAND SYRIA
BAHRAIN ESTONIA LATVIA PORTUGAL TAIWAN
BANGLADESH FRANCE LEBANON QATAR THAILAND
BELARUS GERMANY LIBYA REPUBLIC OF IRELAND TUNISIA
BELGIUM GHANA MALAWI ROMANIA TURKEY
BOTSWANA HONG KONG MALAYSIA RUSSIA U A E
BRAZIL HUNGARY MALTA SAUDI ARABIA UGANDA
BULGARIA INDIA MAURITANIA SENEGAL UK
CAMEROON INDONESIA MAURITIUS SINGAPORE UKRAINE
CANADA IRAQ MONGOLIA SOUTH AFRICA USACHINA ITALY MOROCCO SOUTH KOREA VIETNAM
CROATIA IVORY COAST NETHERLANDS SPAIN ZAMBIA
CYPRUS JAPAN NETHERLANDS ANTILLES SRI LANKA ZIMBABWE
NEW ZEALAND
© ifs University College 2013
Certificate in International Trade and FinanceCITF® - Introduction
First offered in 2009 the Certificate in International Trade and Finance was developed as a qualification for those either new to trade finance or wanting to develop their knowledge further. Typical profile of candidates:
Relationship Managers with internationally active clients in their portfolios
Trade services operations personnel wish to broaden their knowledge
(90% of respondents from our 2014 survey work in Financial Institutions) Export sales personnel in large corporates
(10% of respondents from our 2014 survey work for exporters/importers or for freight forwarders)
© ifs University College 2013
Certificate in International Trade and FinanceCITF® - 2014 Survey results
CITF® has proved popular in the past with successful candidates giving a very positive response to the 2014 Survey: 66% stated it had helped them gain their current role 74% used their knowledge most days, if not everyday, in their day-to-day job 88% believed it had enhanced their career prospects 88% felt that their achieving CITF® was beneficial to their organisation
Despite these very positive responses however, our own research and direct feedback from a number of sources suggested that the pace of change in international trade was such that CITF® needed to be refreshed
© ifs University College 2013
Certificate in International Trade and FinanceCITF® - Development of new Syllabus
Working Group convened in early 2013 Input sought from a variety of sources New Chief Examiner appointed
New Test Committee appointed Revised Syllabus agreed Revised Text Book commissioned
The ‘Guide to International Trade and Finance’ ICC endorses CITF®
© ifs University College 2013
Certificate in International Trade and FinanceCITF® - Development of new Syllabus
High level Objectives of the revised CITF® are for successful candidates to be able to: advise clients appropriately on the basics of international trade and finance; understand the processes involved in each type of international trade
product; understand the risks involved in international trade and how to mitigate
them; understand current banking practices and conventions applicable to
international trade; understand the roles and responsibilities of all parties involved in
international trade transactions.
© ifs University College 2013
The significance of international trade and the role of the
International Chamber of Commerce (ICC): Principles of international trade Challenges of international trade Role of the ICC Regional and global initiatives Risk mitigation
Certificate in International Trade and FinanceCITF® - Content
© ifs University College 2013
Certificate in International Trade and FinanceCITF® - Content
The role and responsibilities of parties involved in international trade: Banks Buyers Sellers Traders and intermediaries Transport companies Chambers of commerce Customs Insurance companies Factoring companies Forfaiting companies
© ifs University College 2013
The relationships between the parties involved in international trade and the trade finance environment and external impacts;
ICC – international model contracts International commercial terms (Incoterms®) Exchange controls Regulatory issues Sanctions Money laundering Fraud
Role and practice of dispute settlement within international trade including: Dispute handling, arbitration and resolution ICC arbitration Documentary Instruments Dispute Resolution Expertise (DOCDEX) Litigation
Certificate in International Trade and FinanceCITF® - Content
© ifs University College 2013
Methods of settlement available and the rules that govern them: Open account Collections and URC Letters of credit and UCP Introduction to ISBP Guarantees and URDG Standbys and ISP98 Bank Payment Obligations and URBPO
Certificate in International Trade and FinanceCITF® - Content
© ifs University College 2013
Certificate in International Trade and FinanceCITF® - Content
Methods available for financing and servicing international trade: Short, medium and long-term finance Supply chain finance Export Credit Agencies Credit and political risk mitigation Forex risk and hedging Forfaiting and URF Islamic trade financing
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Purpose and key features of the different types of documents used in international trade: Financial documents
Bill of Exchange Promissory Note
Commercial documents Invoices (commercial, customs, tax, consular, provisional, pro-forma) Insurance document Certificate of origin Inspection certificate Packing list Weight list Analysis, Health, Phytosanitary, Quantity, Quality, Beneficiary Certificates
Certificate in International Trade and FinanceCITF® - Content
© ifs University College 2013
Certificate in International Trade and FinanceCITF® - Content
Transport documents Multimodal or combined transport Bill of lading Non-negotiable sea waybill Charter party bill of lading Air transport Road, rail or inland waterway
© ifs University College 2013
International Trade Finance Qualifications
Certificate in International Trade and Finance (CITF®) An introduction to all aspects of trade finance Registrations opened on 1st April for October exam
Certificate for Documentary Credit Specialists (CDCS®) A practical examination for documentary credit professionals Record number of candidates for the April examination
Certificate for Specialists in Demand Guarantees (CSDG) A new examination for guarantee and standby credit practitioners Number of candidates far exceeds expectations for June exam
All three qualifications have been developed in partnership with the ICC and each carries the ICC endorsement.
Whether newly appointed or experienced in their specialist field, Trade Finance professionals now have a suite of qualifications to develop their expertise and enhance their career prospects.
© ifs University College 2013
Conclusion
ifs University College in partnership with the ICC has developed and enhanced three leading international trade finance qualifications
In studying for these qualifications Trade Finance professionals may develop their expertise and in many areas fill the gaps in their knowledge so that they may have a more complete understanding and appreciation of their subject
Lack of knowledge and understanding is a barrier and can create uneven tensions between the various parties engaged in international trade
Professional qualifications play their part in breaking down those barriers and help level the playing field.
© ifs University College 2013
Levelling the Playing Field Produces Winners!