The Association of Corporate Treasurers

1. The Association of Corporate Treasurers An introduction to: The Hungarian Treasury Club James Lockyer, Director of Education and International Development November 2011

2. What is corporate treasury? • It is the interface between the company and financial markets • It deals with three critical questions in finance: • How do we decide what to invest in? • How do we raise the money to make those investments? • How do we control risk in the organisation? Which can be summed up as • What is our financial strategy and policy? • The finance director is responsible for advising the board • The treasurer is responsible for advising the FD • But often briefs the board directly • And it has major operational responsibilities too.

3. Role and profile of treasurers Role • Principal tasks broadly defined under five core treasury elements: • Capital markets and funding • Cash and liquidity management • Corporate financial management • Risk management • Treasury operations and controls Profile “One day I'm a banker, the next I'm an accountant and then I'm a trader. Still I’m a corporate treasurer.” • The financial crisis has raised profile of treasurers • UK Government report flagged training, transparency and challenge as constituting good treasury practice.

4. ACT in 2011 • Members and students in 70 countries • 4,200+ members – 20% outside the UK • 2,400+ students – 40% outside the UK • c70% of members and students already have a finance qualification (eg ACA, CIMA, ACCA) • Highly respected within the UK • 87% of FTSE 100 have >8 ACT members • 53% of FTSE 350 have >1 ACT member • Now supporting • Career treasurers, and • Career finance professionals – CFOs, financial controllers, internal auditors etc.

5. ACT – international presence • Tuition and/or events in Germany, Hong Kong, India, Ireland, Netherlands, Russia, Singapore, South Africa, UAE and UK • Active member of International and European treasury groupings (IGTA and EACT) • Providing education support to 8 national treasury associations around the world • Middle East network launched in 2008 www.actmiddleeast.org

6. ACT – promoting international professional treasury standards • Committed to developing ACT’s networks and support for members and students overseas, in particular • Europe • Hong Kong • India • Middle East • North America • Singapore • South Africa • In raising the profile of ACT overseas we can increase recognition of professional treasury qualifications and in turn the profession.

7. Who do we work with? • Treasury Associations: • EACT, IGTA & Members (CAT (Czech), SAF (Slovakia), AITI (Italy), IACCT (Hong Kong), ACTSA (South Africa), IACT (Ireland), ACTS (Singapore) • Accountancy Bodies: • ICAEW, ACCA, CIMA, CIPFA, HKICPA, ICPAS, SAICA, IFAC • Regulators / Government: • FRC, FSA, Bank of England, Treasury, European Commission, IASB (and EFRAG), UK Financial Reporting Council (FRC) • Other professional bodies: • ICSA, IIA, IRM 07/08/2014 7

8. Why treasury qualified? You wouldn’t trust your key legal decisions to someone who isn’t a qualified lawyer, so – whatever the size of your organisation – why entrust your treasury, risk and corporate finance to someone who isn’t a qualified treasury professional?

9. ACT qualifications Fast-track route and exemptions Standard route to ACT qualifications and membership Level of ability MCT Advanced Diploma Advanced treasury knowledge and strategic decision making – proven ability and expertise Full Member of the ACT Direct entry with relevant finance qualification or senior experience AMCT Diploma Modular syllabus comprising 3 stages Technical treasury competence acknowledged standardAssociate Member of the ACT AMCT Stage 3 Select 2 electives to complete AMCT or take as individual certificates Shorter CertCFF paper and exam for AMCT Fast-Track eligible accountants Specialist skills ACT Faculty Member CertCFF Corporate Finance & Funding CertFMM Financial Maths & Modelling CertICM Cash Management CertRM Risk Management AMCT Stage 2 AMCT entry point for qualified accountants from IFAC member bodies and those with other relevant qualifications Broad practical understanding of treasury ACT Faculty Member Compulsory for AMCT or can be taken as individual certificates Certificate in International Treasury Management – CertITM Certificate in International Treasury Management Public Finance – CertITM-PF Fundamentals of financial and management accounting, economics, corporate tax and law for business ACT Faculty Member AMCT Stage 1 Qualified accountants are exempt from AMCT stage 1 Exemptions available with other relevant qualifications Can be taken as part of AMCT or as individual certificate Certificate in Financial Fundamentals for Business – CertFin

10. The voice of corporate treasury Representing the corporate user of financial services to regulators and standard setters and in developing market practices. A few recent examples OTC derivative regulation in Europe - Successfully argued for carve out for non financial companies European Financial Transaction Tax (FTT) - Political momentum is increasing for a new FTT in Europe Supply Chain Finance (SCF) - Chaired working group set up by the Bank of England. Market Abuse Directive - Lobbying for EU to adopt same high standards Credit rating methodologies - Responded to consultations from rating agencies on changes to methodologies for rating banks and for rating Money market Funds Independent Commission on Banking (UK) • Submitted evidence to the Vickers review For more go to http://www.treasurers.org/technical

11. ACT – promoting international treasury standards • The Treasurer magazine and Middle East Treasurer • Readership >20,000, 49% outside the UK • Editorial leadership – by treasurers, for treasurers • Specialist supplements/reference books • Monthly e-newsletter • Handbooks • International Handbook – 40% distributed outside UK • Asia Handbook – regional specific content • Flagship Events • ACT Annual Conference • ACT Middle East Annual Conference • talkingtreasury – the international thought-leadership series • Annual Dinner, London

12. The Association of Corporate Treasurers jlockyer@treasurers.org www.treasurers.org