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CEFA Syllabus 2021As of November 2021, this new CEFA syllabus approved by theEMC 29.04.2021 and ratified by the AGM 04.06.2021 will enterinto force.Part 1Economics1.1.1.1.1.1.MacroeconomicsMeasuring National Income and PriceNational income accountingConcept of national incomeConsumptionConsumption functionInvestmentInvestment function1.2.3 Government expenditureGovernment revenue and expenditureEffect of government expenditure and tax on national incomeGovernment expenditure and crowding-out effectEquilibrium relationship in the good/service market: IS curveEquilibrium in the Money MarketDemand for moneyEquilibrium relationship in the monetary market: LM curveEquilibrium in Economy and Aggregate DemandAggregate demandAggregate Supply and Determination of Price of Goods/ServicesAggregate 1.5.1.5.1.2.2.1.2.1.1.2.2.2.2.1.2.2.2.Page 1Macro DynamicsInflationUnemployment and inflation rateTradeoff between unemployment and inflationNatural rate of unemployment hypothesis and expectedinflationEconomic GrowthMain factor of economic growthSaving rate/capitalPopulation growthTheory of economic growthCapital accumulation and economic growthTechnological innovation and economic growthCEFA Syllabus 2021
Human resources and economic growthFinancial market and economic growth2.3.2.3.1.2.3.2.2.3.3.Business CyclesTheory of exogenous business cycleTheory of endogenous business cycleFiscal/monetary policy and business cycle3.3.1.3.1.1.International Economy and Foreign Exchange MarketOpen MacroeconomicsInternational balance of payments and capital flowsBalance of payment statementBalance of payment and capital flowsFactor affecting international capital movementGovernment’s intervention and money supplyDetermination of equilibrium national income in the open economyForeign trade multiplier under floating systemOpen macro economics model: preliminaryEquilibrium model of open economyEffect of fiscal policyEffect of monetary policyForeign exchange rateDeterminants of exchange rate in the long-runConcept of foreign exchange ratePrice and foreign exchange rateInterest rate and foreign exchange rateDetermination of foreign exchange ratesMonetary approachAsset approachOvershooting modelPortfolio balance approach3.2.3 Government intervention and foreign exchange policyGovernment interventionForeign exchange rate and foreign exchange policy in localmarket3.2.4 Foreign exchange risk and risk managementRisk hedging with currency derivativesGrowth of currency derivatives marketsHistorical movement and forecasting of foreign exchange rateHistorical analysis of foreign exchange rateForecasting of foreign exchange rateImpact of foreign exchange rate change on security pricesCentral bank and monetary policyMonetary policyTarget of monetary policyInstruments of monetary policyTransmission effect of monetary policy on real .3.3.1.3.3.2.Page 2CEFA Syllabus 2021
3.3.3.3.3.4.Page 3Central bank operations in major countriesEffect of monetary policy on security marketsCEFA Syllabus 2021
Part 2Corporate Finance1.1.1.1.1.1.1.1.2.Fundamentals of Corporate FinanceGoals of Corporate FinanceValue maximisation of shareholdersCorporate Governance issueAgency relationshipControl of the firmThe Finance Function and the Firm’s ObjectivesRole of Financial ManagersPrinciples of ValuationWhat is value?The valuation processValue creation for shareholdersDiscounted Cash FlowsWhat is cash flow?Basics of cash flow analysisTerminal valuesCapital BudgetingInvestment decision criteriaPayback rulesDiscounting payback period methodIRRNPVCost of capitalCost of equity capitalCost of debt capitalWACCCorporate taxes, interest subsidy and cost of capitalCAPMMeasuring betaCertainty equivalentsRisk free rateRisk adjusted discount .2.2.2.2.2.1.2.2.2.2.2.3.Page 4Long-Term Finance DecisionInvestment DecisionPeriodic budgetingProject evaluationProject EvaluationMethod for ranking investment proposalsCapital resource rationingCommon pitfalls (eg. Sunk costs, depreciation)CEFA Syllabus 2021
2.3.Liquidation and Reorganisation3.3.1.3.1.1.Short-Term Finance DecisionShort-Term FinancingCurrent asset financingNeeds for working capitalComponents of working capitalShort term financingShort-term financing resourcesShort-term financial planning modelsCash ManagementCredit managementCommercial credit instrumentsCredit decisionCash managementTarget cash balance modelCash conversion cycleInvesting idle cash balanceShort-Term Lending and BorrowingShort-term lendingMoney marketsAlternatives to money marketsShort-term borrowingCredit rationingSecured and unsecured .1.1.4.2.1.4.2.2.4.2.3.4.2.4.4.2.5.4.2.6.Capital Structure and Dividend PolicyLeverage and the Value of the FirmModigliani-Miller Theory1) Irrelevance Theorem2) Corporate taxes and capital structureBankruptcy cost modelAgency cost modelDividend PolicyTypes of dividend (cash dividend, stock dividend, andsplits)Repurchase of stockIrrelevance TheoremClientele effectSignalling modelDividend policy in local market5.5.1.5.1.1.5.2.Mergers and AcquisitionsValuation IssuesValuation of the targetForms of Acquisitions4.1.2.4.1.3.4.2.Page 5CEFA Syllabus 2021
4.5.4.5.4.1.5.4.2.5.4.3.Take-oversApproved acquisitionsCreeping take-oversEliminating minority interestsStrategies for the AcquirerAggressive or agreedConditional or unconditionalTimingBoard considerationsDefensive StrategiesPre-emptive versus reactivePre-emptive (long-term) strategiesPre-emptive (short-term) 6.2.3.6.2.4.6.2.5.International Corporate FinanceInternational Capital Budgeting for Multinational FirmForeign project appraisalPolitical risk analysisManaging foreign exchange exposureAsset and Project FinanceAsset-backed securitiesLeasingProject evaluationLender's evaluation of the projectSyndicationPage 6CEFA Syllabus 2021
Part 3Financial Accounting and Financial Statement Analysis1.1.1.1.1.1.1.1.2.Financial Reporting EnvironmentFinancial StatementsBalance sheetIncome statementPresentation formatsClassification of expenses (by nature or by function)Statement of cash flowsStatement of changes in equityThe comprehensive incomeNotes to financial StatementsRelation between business activities and financial statementsFinancial Reporting IssuesUses of financial statementsEquity investmentCredit extensionCompetitionMerger & AcquisitionInternational differences in accountingInternational differences in accountingMarket – oriented accounting systemsBank – oriented accounting systemsThe IASB and the .2.2.2.3.2.4.Framework for the Preparation and Presentation of Financial StatementsObjective of financial statementsAccounting conventions (going concern, accrual Basis, etc)Criteria for accounting recognitionFundamental definitions (asset, liability, equity, revenue, expense)3.3.1.3.2.3.3.3.3.1.3.3.2.The cash flow statementRationale for the Statement of Cash FlowsRelation between Income Flows and Cash FlowsPresentation of the cash flow statementThe direct methodThe indirect method4.4.1.4.1.1.4.1.2.4.2.4.3.4.3.1.The income statement: Revenue recognitionCriteria for revenues recognitionSales of goodsRendering of servicesMeasurement of revenuesConstruction contractsPercentage of completion methodPage 7CEFA Syllabus 2021
4.3.2.4.4.4.4.1.4.4.2.4.4.3.Completed contract methodAccounting for stock – options and similar benefitsClassification of sharebased paymentsEquity – settled sharebased paymentsCash-settled sharebased payments5.5.1.5.1.1.Assets, Liabilities and Shareholders EquityAssetsProperty, plant and equipmentMeasurement at costMeasurement at fair valueInvestment propertyMeasurement at costMeasurement at fair valueIntangible assetsCriteria for recognitionAccounting for research and development costsInventoriesMeasurementCost formulas(FIFO, LIFO, weighted average Cost)Financial instrumentsClassificationMeasurement at fair valueMeasurement at amortized costHedge accountingImpairment of assetsMeasuring the recoverable amountImpairment testsLiabilitiesBondsAccounting for bond discounts/premiumsHybrid securitiesConvertible debt securitiesDebt issues with detachable warrantsLeasesOperating leasesFinance leasesBorrowing costsConditions for capitalizationCosts that may be capitalizedRetirement benefitsPensionsPost-retirement benefits other than pensionsIncome TaxesTemporary .5.2.2.5.2.3.5.2.4.5.2.5.5.2.6.Page 8CEFA Syllabus 2021
1.Deferred taxesProvisionsConditions for the recognition of provisionsContingent liabilitiesShareholders’ EquitiesIssuance of capital stockAcquisition and reissue of treasury stocksCash, property and stock dividendsAccountingOther changes inretained 2.7.Business CombinationMergers and AcquisitionsAcquisitionsAsset valuation in acquisitionsAccounting for goodwillMergersPooling of interests methodPurchase methodConsolidated Financial StatementsThe scope of consolidationConsolidation methodsThe difference arising from consolidationUses of each methodThe consolidation procedureAnalysis of the difference arising from initial consolidationImpairment of reign Currency TransactionsForeign Currency TransactionInitial recognitionReporting at subsequent B/S dailyRecognition of exchange differencesFinancial Statements of Foreign OperationsClassification of foreign operationsTranslation to the presentation currency8.8.1.Financial Reporting and Financial Statement AnalysisIncome Flow vs Cash FlowRelation between net income and cash flows from operatingactivitiesNet income and cash flows in various stages of life cycleQuality of Earning, Earnings ManagementData issues in analyzing financial statementsNon-recurring income itemsIncome, gains and losses from discontinued operations6.1.2.8.1.1.8.1.2.8.2.8.2.1.Page 9CEFA Syllabus 2021
8.2.2.8.4.2.8.4.3.8.5.Accounting changesChanges in accounting estimatesChanges in accounting policiesAdjustments to prior financial statementsEarnings per ShareBasic earnings per shareDiluted earnings per shareUsing EPS to value firmsCriticisms of EPSSegment ReportingDefinitionIndustry segmentsGeographical segmentsDisclosure requirementsUsing segment informationInterim Financial ical Tools for Gaining Financial Statement InsightsBalance SheetCommon size analysisTime series analysisIncome StatementCommon size analysisTime series analysis10.10.1.10.1.1.Analytical Tools for Assessing Profitability and RiskProfitability AnalysisROABreakdown of ROAInterpreting ROAROCERelating ROA to ROCEBreakdown of ROCERisk AnalysisShort term liquidity riskCurrent ratioQuick ratioOperating cash flow to current liabilitiesWorking capital activity ratioOperating cash flow to cash interest costLong term solvency riskDebt ratioInterest coverage ratioOperating cash flow to total liabilitiesOperating cash flow to capital 0.1.2.10.2.10.2.1.10.2.2.P a g e 10CEFA Syllabus 2021
10.2.3.10.3.10.4.10.4.1.10.4.2.P a g e 11Financial distress riskUnivariate analysisMultiple discriminant analysisBreak-even AnalysisPro Forma Financial StatementsSteps in preparing pro forma financial statementsConditions when common size percentage, growth rates, andturnover provide the best projections of financial statementsamountsCEFA Syllabus 2021
Part 4Equity Valuation and Analysis1.1.1.1.2.Equity Markets and StructuresTypes of equity securitiesCommon stockPreferred stockEquity mutual fund shares1.2. Indices2.Understanding the Industry Life Cycle3.3.1.3.2.3.3.3.4.3.5.3.6.3.7.Analysing the Industry Sector and its ConstituentCompaniesThe industry sectorCharacteristic of the industryMacro factorForecasting for companies in the sectorBalance sheet factorsCorporate ing the CompanyHistorical financial performanceSegmental informationInventory, debtors and creditorsDepreciation and amortisationCompleting the .5.4.2.5.4.3.5.4.4.Valuation Model of Common StockDividend discount modelZero-growth modelConstant growth modelMultiple growth modelFree cash flow modelEVA, MVA, CFROI, Abnormal earnings discount modelMeasures of relative valuePrice/earning ratioPrice/book value ratioPrice/cash flow ratioPrice/sales ratioP a g e 12CEFA Syllabus 2021
Part 5Derivative Valuation and Analysis1.1.1.1.1.1.Financial Markets and InstrumentsDerivatives MarketsFixed income derivativesInterest rate optionsInterest rate futuresDelivery optionsConversion factorsCheapest-to-deliver bondsCustom interest rate agreements (interest swap, IRA, cap, floor and swaptions)Equity derivativesOptions on individual stocksStock index futures and optionsFutures MarketsBasic characteristics of futures contractMechanics of trading in futures marketsRelated MarketsSwapsCharacteristics of swapsRelated products (IRA, cap, floor, swaptions)Credit derivatives: Market, instruments and general characteristicsMarket of credit derivativesDefinition of credit default swaps (CDS)Structural diagram of credit default swapsCredit eventsPhysical settlementCash settlementTrigger eventsCDS productsCredit default swaps and credit linked notesIndex productsOther credit default swap productsThe role of credit derivativesIsolating credit riskEfficient mechanism to short a creditMarket for pure credit risksLiquidity provision in times of turbulenceTailor credit investments and hedgesConfidential transactionsMarket participantsBank and loan portfolio managersMarket makersHedge fundsAsset 1.4.4.1.4.5.1.4.6.1.4.7.P a g e 13CEFA Syllabus 2021
.1.5.2.2.2.2.1.2.2.2.2.2.3.2.2.4.P a g e 14Insurance companiesCorporationsInstitutional frameworkMarking to marketStandardised documentationCounterparty considerationSpread volatility of credit default swapsCredit derivatives:valuation of credit default swapsCreating synthetic CDSValuation of credit default swaps by a non-arbitrage approachEstimating default probabilitiesAnalysis of derivatives and other productsFuturesFactors determining contract priceTheoretical price of futuresBasis and factors causing changeArbitrage problemsHedging strategiesThe hedge ratioThe perfect hedgeMinimum variance hedge ratioHedging with several futures contractsOptionsDeterminants of option priceOptions pricing modelsB&S option pricing formula and variantsEuropean options on stocks paying known dividendsEuropean options on stocks paying unknown dividendsAmerican options on stocks paying known dividendsOptions on stock indicesOptions on futuresOptions on currenciesWarrantsBinomial option pricing model2.2.3 Sensitivity analysis of optionsPremiumsThe strike pricePrice of underlying assets, and delta and gammaThe time to maturity and thetaInterest rate and rhoVolatility of the stock returns and vegaVolatility and related topicsEstimating volatility from historical dataImplied volatility and volatility smileCEFA Syllabus 2021
2.2.5.2.2.6.2.3.2.3.1.2.3.2.2.3.3.2.3.4.P a g e 15Exotic optionsOptions strategiesCovered callProtective putSpreadsStraddlesStranglesAsset-backed SecuritiesTypes of underlying assetsInstalment contractRevolving lines of creditOther assetsCash flow characteristicsCredit enhancementValuation methodologiesCEFA Syllabus 2021
Part 6Fixed Income Valuation and Analysis1.1.2.1.2.1.Financial Markets and InstrumentsFixed Income: Corporate and GovernmentTypes of fixed income securitiesMoney market instrumentsGovernment bondsCorporate .1.2.3.2.2.3.3.P a g e 16Time Value of MoneyTime value of moneySimple versus compound interestPresent and future valueAnnuitiesContinuous discounting and compoundingBond Yield MeasuresYield vs discountCurrent yieldYield to maturityYield to callOther basic conceptsSpot ratesDiscount functionForward ratesRelations between spot rate, forward rate and the slope of the termstructureYield curvesMarket Curves (Observed)YieldSwapsCreditTheoretical Curves (Imputed)Term StructuresParametric modellingTerm Structure of Interest RatesYield curves and shapesTheories of term structureExpectations hypothesisLiquidity preferencesMarket segmentation and preferred habitat theoriesTerm structuresRisk ManagementAsset Management/Liability Management/ALMFinancial EngineeringCEFA Syllabus 2021
7.1.2.7.2.2.7.3.2.7.4.P a g e 17Structured ProductsRegulatoryPortfolio ValuationMark-to-Mark with Unobserved PricesBond Price AnalysisBasic price/yield relationshipYield spread analysisTypes of spreadsDeterminants of yield spreadsValuation of coupon bonds using zero-coupon pricesStatic arbitrage and valuation of coupon bondsStrips marketsRisk MeasurementRisk measurement toolsDuration and modified durationConvexityHedgingUsageBond Yield CurvesZero (Spot), Coupon and Par curvesBond Curves in Market UsageStructure and SmoothnessTrade Horizon: Yield, Duration & ConvexityReversion to MeanCurve Shapes and Future RatesConstraints: Absolute & Relative (Slope)Negative Discount FunctionCurves and Economic ActivityCurves and Monetary PolicyOther CurvesSwap CurvesCredit CurvesSpread CurvesCredit RiskIndustry considerationRatio analysisCredit rating and rating agenciesCurves and creditThe Additional Dimensions of CreditDefault riskRecovery RatesAnnualised Expected Loss RatesBankruptcy processesTerm Structure of CreditCredit Default Swaps (CDS)CEFA Syllabus 2021
Curve Shapes and Credit QualityHistorical Behaviour: Curves Under Shock3.3.1.3.2.Bonds with WarrantsInvestment CharacteristicsValue of Warrants4.4.1.4.2.Convertible BondsInvestment CharacteristicsValue of Conversion llable BondsInvestment CharacteristicsPrice-yield relationship for a callable bondNegative convexityValuation and DurationDetermining the call option valueOption-adjusted spreadEffective duration and convexity6.6.1.6.2.Floating Rate NotesInvestment Characteristics and TypesValuation gage-Backed SecuritiesTypes of MortgagesLevel-payment fixed-rateAdjustable-rate (ARM)Types of SecuritiesPass-through securitiesCollateralised mortgage obligationsFactors Affecting Market PriceUnderlying collateralStructure and seasoningPrepayment rateLevel of interest rateLiquidityCredit riskValuation MethodologiesStatic cash flow yield methodologyPrepayment model8.8.1.8.1.1.Fixed Income Portfolio Management StrategiesActive ManagementInterest rate anticipation strategiesP a g e 18CEFA Syllabus 2021
8.3.2.8.3.3.8.4.P a g e 19Yield spread analysisMaturity spacing strategiesPassive ManagementBuy and holdIndexationImmunisationCash flow matchingPortfolio Construction based on a Factor ModelModel specificationSuitable factors such as interest rates, spreadsManaging factor sensitivitiesComputing the Hedge Ratio: the Modified Duration MethodCEFA Syllabus 2021
Part 7Portfolio 5.1.1.5.2.1.5.3.1.5.4.Modern Portfolio TheoryThe Risk/Return FrameworkReturnMeasures of returnRiskComponents of total riskMeasures of riskMeasuresValue at riskEfficient Market HypothesisDefinition & assumptionsAlternative hypothesisTypes of market efficiencyMarket anomaliesPortfolio TheoryDiversification and portfolio riskMarkowitz model and efficient frontierCapital Asset Pricing Model (CAPM) - building on fundamentals in Part 2 module 1.6.3Major assumptionsCapital market line (CML)Security market line (SML)International CAPMArbitrage Pricing TheoryAssumptionsOne factor modelsMulti-factor modelsArbitrage pricing theory2.2.1.2.1.1.2.1.2.2.1.3.Investment PolicyInvestment ObjectivesSetting investment objectives for individualsDeciding portfolio structureSetting objectives for 2.3.2.1.Asset AllocationAsset Allocation OverviewWhat is asset allocation?Who does asset allocation?Implementing and managing the asset allocation processEvolution of asset allocationCapital Market ExpectationsType of Asset AllocationIntegrated asset allocation1.1.2.1.1.3.P a g e 20CEFA Syllabus 2021
3.2.2.3.2.3.3.2.4.Strategic asset allocationTactical asset allocationDynamic asset set Liability-Analysis and ManagementIntroductionBackground of ALMALM with pension fundsTypes of ALM modelsModelling LiabilitiesTypes of liabilitiesValuation of pension liabilitiesAnnuity factors and discount ratesModelling AssetsTypes of asset classesRisk and return characteristicsFunding RatiosDefintionsSurplus risk managementIntegrated OptimisationStochastic simulationTarget functions and trade offsScenario analysis and stress testingImplementation of strategiesActive versus passive ALM strategiesDynamics adjustment of assets and liabilitiesDynamics and ImplementationDynamic adjustment of liabilitiesDynamic asset allocation and rebalancingLiability driven investing5.5.1.5.1.1.Practical Portfolio ManagementManaging an Equity PortfolioActive managementTechnical analysis/market timingStock selection/industry selectionselectionGrowth/value -upAdjusting the beta of an equity portfolioPassive managementBuy and holdStock index funds5.1.2.P a g e 21CEFA Syllabus 2021
1.5.4.2.5.4.3.5.4.4.5.4.5.5.5.5.5.1.5.5.2.P a g e 22Customised fundsCompleteness fundsFactor/style fundsIndexing technologyBenchmark choiceChoice of the tracking errorCombined strategiesActive/passive combinationsPortfolio construction based on a factor modelDerivatives in Portfolio ManagementCombining options and traditional assetsPortfolio insuranceStatic portfolio insuranceDynamic portfolio insuranceConstant Proportion Portfolio InsuranceHedging with stock index futuresHedging with foreign exchange futuresHedging with interest rate futuresUse of swaps in portfolio managementAsset allocation with futuresManaging a Property PortfolioThe role of property in a diversified portfolioThe property investment decisionMicro economic influences on property returnsMacro economic influences on property returnsDifference property investmentsAlternative Assets/Private CapitalUnlisted (non-property) securitiesTerms, conditions and characteristicsRole in a traditional portfolioManaging unlisted security vehiclesMonitoring and reportingInternational InvestmentsInternational diversificationCross-correlationsCountry riskEmerging marketsHedging foreign exchange riskEffective management of currency riskBehaviour of currency returnsIs it a separate asset class / zero sum game?Treatment of currency within a portfolioBlack's paper on universal currency hedgeUse of overlay strategiesKey sensitivitiesCEFA Syllabus 2021
5.5.3.5.5.4.5.5.5.6.6.1.6.1.1.6.1.2.6.1.3.6.1.4.P a g e 23Currency-related example of performance attributionInternational equitiesReasons for holding international equity assetsPerformance objectivesInternational fixed incomeReasons for holding international fixed interest assetsPerformance objectivesManaging a portfolio of international assetsInternational investingGlobal asset allocationPortfolio management stylesPortfolio constructionPortfolio management strategyPerformance MeasurementPerformance Measurement and EvaluationsRisk-return measurementMarket and book value evaluationTime horizon and performance measurementInflow/outflow of cash and performance measurementTime-weighted and dollarweighted rate of returnRisk-adjusted performance measuresSharpe's measureTreynor's measureJensen's alphaAppraisal ratioRelative investment performanceManager-universe comparisonIndices and benchmarksIndex definition and calculationChoosing and constructing a benchmarkDomestic vs. International benchmarksCash benchmark and currenciesMulti-currency investments and interest rate differentialsCurrency overlay and performance measurementBalanced benchmarksRandom and normal portfoliosIndex vs. universe medianStyle-bogey comparisonsPerformance attribution analysisAsset allocation effectIndustry selection effectSecurity selection effectInvestment timing effectAttribution analysis of fixed income portfolioCEFA Syllabus 2021
6.1.5.Special issuesPerformance evaluation of international investmentsA single currency attribution model by Brinson & al.Multi-currency attribution and interest rate differentialsPerformance evaluation of international investments derivativeinvestmentsEffects of costs7.7.1.7.1.1.Management of Investment InstitutionsAssessing and Choosing ManagersStyle analysisMeans of style analysisStyle analysisRisks, controls and prudential issues: organisational issuesRisks, controls and prudential issues: fee 5.4.8.6.8.7.8.8.8.9.8.10.Behavioural FinanceDefinition and scope of Behavioural FinanceRationality (homo oeconomicus) versus Bounded Rationality (according to Herbert Simon)Anomalies in human behaviourAnomalies regarding perception of informationAnomalies regarding information processingAnomalies regarding decision makingHeuristicsSimplification heuristicMental accountingAvailability heuristicAnchoringRepresentativityProspect TheoryValue functionAsymmetry effectDisposition effectReference pointsLoss aversionRegret aversionFramingOverconfidenceHome biasP a g e 24CEFA Syllabus 2021
Part 8: European RegulationChapter I: European Legal Framework for Financial Services0.Why regulation?1.European Legislation1.1.A brief history of European Union1.2.Enlargement1.3.Decision-Making Bodies1.3.1.The European Parliament1.3.2.The Council of the European Union1.3.3.The EU Commission1.4.Legislative ns1.4.4.National Implementing Measures1.5.Legislative Procedure1.5.1.Co-Decision Procedure1.5.2.Comitology Procedure (Lamfalussy 2.2.2.2.3.2.3.2.4.The Single Market for financial servicesThe four principles of General Freedom in the EUFree Movement of PeopleFree Movement of GoodsFree Movement of ServicesFree Movement of CapitalHarmonisation of LegislationMinimum harmonisationMaximum harmonisationHarmonisation via regulationsFSAP Financial Services Action PlanSingle Market Act3.Regulation of Capital Markets3.1.Market in Financial Instruments Directive (MiFID II / MiFIR)3.1.1.Guiding Principles3.1.2.Rules of Conduct3.2.Market Abuse Directive (MAD II / MAR)3.2.1.Insider Transactions3.2.2.Market Manipulation3.2.2.1.Manipulative deals and orders3.2.2.2.Deals and orders with accompanying manipulative actions3.2.2.3.Manipulative information3.3.Directive on Takeover Bids3.4.Prospectus DirectiveP a g e 25CEFA Syllabus 2021
cy DirectiveEMIR European Market Infrastructure RegulationRegulation on Investment Funds (UCITS)Alternative Investment Fund Managers Directive (AIFMD)Regulation on Credit Rating AgenciesInvestor compensation schemesAnti Money Laundering DirectiveRegulation on PRIIPSNew Investment vehiclesChapter II: European Supervision of Capital Markets4.European Regulatory Bodies4.1.Old Supervisory 4.4.P a g e 26National Supervisory AuthoritiesEU CommitteesCommittee of Banking Supervisors (CEBS)Committee of Insurance and Occupational PensionSupervisors(CEIOPS)Committee of Securities Regulators (CESR)Colleges of SupervisorsNew Supervisory ArchitectureEuropean Systemic Risk Board (ESRB)European System of Financial SupervisorsEuropean Banking Authority (EBA)European Insurance and Occupational Pensions Authority(EIOPA)European Securities and Markets Authority (ESMA)Banking UnionCapital Markets UnionCEFA Syllabus 2021
Part 9: Ethics1.1.1.1.2.1.3.1.4.Ethical ConductWhy ethical behaviour in financial markets?The 'client first' principleConflicts of interestMarket Abuse (insider trading, market .4.2.Self Regulation and Ethical ConductIOSCOBasel Committee for Banking SupervisionCorporate Governance & ComplianceCorporate Governance CodesStandard Compliance CodesCode of Ethics for Financial AnalystsEFFAS Principles of Ethical ConductPractical case studies on 1.2 to 1.4.ACIIA Principles of Ethical Conduct(overview)2.4.3.AnnexP a g e 27EFFAS Principles of Ethical Conduct in full textCEFA Syllabus 2021
Part 10: ESG1.1.1.1.2.1.3.1.4.1.5.ESG - an introductionESG Investment - where do we stand?Definitions and developmentsESG strategiesEmpirical evidence about ESG and financial performanceBarriers to ESG2.2.1.2.2.2.3.Recent Developments of ESG integrationMarket driversRegulatory Framework (Investor demands and initiatives)ESG Reporting Frameworks for companies and ent Process ChainIntroductionMacro research and asset allocationCompany analysisPortfolio constructionTradingPortfolio and risk analyticsCompliance and
P a g e 1 CEFA Syllabus 2021 CEFA Syllabus 2021 As of November 2021, this new CEFA syllabus approved by the EMC 29.04.2021 and ratified by the AGM 04.06.2021 will enter into force. Part 1 Economics 1. Macroeconomics 1.1. Measuring National Income and Price 1.1.1. National income accounting Concept of national income 1.1.2. Consumption
