Compliance in Derivatives

Trainer - Patrick Thompson

To register your interest for 2008 please contact Sarah Woolcock
Course flyer with full details - click here
FAX COMPLETED FORMS TO: +44 (0)20 7621 0223

The course is aimed at those who will become compliance officers within firms who are users of derivative products and the programme contains tuition on both the technical attributes of the products as well as on the details of compliance issues particular to the field.

Some knowledge of the FSA Handbook and of the Financial Services & Markets Act is assumed. However for those who are new to the subject, there is an optional one-day course on the fundamentals of regulation, which is available before the start of the main course itself.

For the 2007 programme there is also a MiFID transitional training day designed to enable delegates to ensure the currency of their knowledge. This is also an optional module, but attendance is highly recommended.

The breadth of the course coupled with its unique assessment structure, make it a challenging, but invaluable experience. For those who are dedicated to excellence in the field of derivatives compliance it is a must.

This course is accredited under the Law Society's CPD scheme.

For full details please see course flyer or outline below.

MiFID TRANSITION

Financial Services Action Plan
MiFID implementation

Key Issues
Organisation and SYSC
Conduct of Business
Classification
Best Execution
Suitability/Appropriateness
Conflicts

Basel II & CRD
Impact on derivatives

Exercises using MiFID Connect Guidance

Course Outline Days 1 - 6

Exchange Traded Products
Financial & Commodities

Futures
Attributes
Risks & Applications

Options
Attributes
Risks & Applications

Trading Practice
Clearing & Settlement

Over the counter products
Market Background
OTC & Exchange Compared
Interest Rates Swaps
Currency Swaps
Equity Swaps
Commodity Swaps
Credit Derivatives
Exotic Options
Structured Products/Hybrid Products
Credit Risk Management/Mitigation

Fundamentals of Financial Mathematics

Concept of the time value of money
Discounted Cash Flow (DCF)
Deriving present values & terminal values

Measuring Risk & Return
Calculating Returns
Calculating Risk
Standard Deviation & Variance

Pricing Basics
Fair Value - futures, swaps & options Greeks

Derivatives Regulation in the US

Regulation of US Financial Services
History
Role and responsibilities of the SEC & CFTC
Self-Regulatory Organisations
Modernisation & Ongoing issues

What the UK based practitioner needs to know
Marketing
Documentation
Client Money

Jurisdictional roundup
Trans-Atlantic initiatives

Understanding ISDA Documentation
Other documentation

Days Five & Six - Practicalities
Market Abuse & Derivatives
Criminal Law
Civil Law
Regulations
Exchanges
UK Takeover Code
Accepted Market practices
Case Studies
FOA Guidelines

The Role of the Compliance Officer (Guest Speaker)
Regulatory expectations
Tasks
Communication
Monitoring
Strategy
Advice
Managing the regulator
Investigation

Beyond regulation
Business ethics and reputational risk
Whistle-blowing

Compliance Simulation
Group work using business simulation model to maximise shareholder value whilst, controlling reputational and regulatory risk.

OPTIONAL Regulatory Primer

Background to UK Regulation
Self-regulation to statutory regulation
Approach to derivatives

Financial Services & Markets Act
Main provisions
Secondary Legislation

High Level Standards

Training & Competence

Client Asset Rules
Fighting Financial Crime
UK Regulation and Guidance Notes
EU Directives/US Patriot Act
Practicalities

Course work
- An essay of maximum of 1,000 words (15% of the marks)
- The second piece of course work will consist of two case studies or compliance problems focusing on Conduct of Business Rules (25% of the marks)

Course tests
- An "open book" assignment incorporating 10 questions aimed at testing technical derivatives knowledge (15% of the marks)
- A one hour, multiple choice, examination testing candidates' detailed knowledge of the regulatory content of the course manual (15% of the marks)

Interview
- One 30 minute interview, administered by two compliance practitioners and an independent chairperson, during which candidates will be required to demonstrate the ability to provide sound compliance advice and opinions across the syllabus area (30% of the marks)

Cost - 6 day course
£1,700 +VAT FOA members
£2,000 +VAT non-members
Re-sit Fee: £50 +VAT per paper (max 2) £150 +VAT full course

The optional Regulatory Primer and 1 day MiFID Transition Module

Costs for attending the above are £500 + VAT (£250 + VAT per day) for FOA members and £700 + VAT (£350 + VAT per day) for non-members

The course is tutored by Patrick Thompson - Eukleia Training - who is highly regarded in this field and has been successfully delivering this course since it began.

To register your interest please email Sarah Woolcock or call +44 (0)20 7090 1330.