levelling the playing field in international trade finance

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 SUDANARGENTINA DENMARK KAZAKHSTAN OMAN SWEDENAUSTRALIA ECUADOR KENYA PAKISTAN SWITZERLANDAZERBAIJAN EGYPT KUWAIT POLAND SYRIABAHRAIN ESTONIA LATVIA PORTUGAL TAIWANBANGLADESH FRANCE LEBANON QATAR THAILANDBELARUS GERMANY LIBYA REPUBLIC OF IRELAND TUNISIABELGIUM GHANA MALAWI ROMANIA TURKEYBOTSWANA HONG KONG MALAYSIA RUSSIA U A EBRAZIL HUNGARY MALTA SAUDI ARABIA UGANDABULGARIA INDIA MAURITANIA SENEGAL UKCAMEROON INDONESIA MAURITIUS SINGAPORE UKRAINECANADA IRAQ MONGOLIA SOUTH AFRICA USACHINA ITALY MOROCCO SOUTH KOREA VIETNAMCROATIA IVORY COAST NETHERLANDS SPAIN ZAMBIACYPRUS JAPAN NETHERLANDS ANTILLES SRI LANKA ZIMBABWE

NEW ZEALAND


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)


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 organisationDespite 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


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®


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.


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



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


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



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




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


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




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


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 examCertificate for Documentary Credit Specialists (CDCS®) A practical examination for documentary credit professionals Record number of candidates for the April examinationCertificate 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.


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.


Levelling the Playing Field Produces Winners!

Thank you

David [email protected]

www.ifslearning.ac.uk

levelling the playing field in international trade finance

Documents

type of international

basics of international

citf ifs university

survey work

survey resultscitf

financecitf development

revised citf

finance icc