Study Platform Online Tool,SPOT, to study for the CIIA ex-aminations.

The ACIIA Chairman Mr. Fritz H.Rau visited the Swiss FinancialAnalysts Association in Interla-ken, Switzerland to gain an insi-ght of the logistical organisationneeded when a society holdsexaminations in four languagesand also attended the SFAABoard meeting which is heldevery year in conjunction withthe March examinations. TheSwiss society had 141 candida-tes present for Final 1 and 146candidates present for Final 2.The candidates now have a fewweeks to wait until the resultsare released in the middle ofMay. ●

Asia, Europe, Central and SouthAmerica, the Middle East andNorthern Africa, and encom-pass a wide variety of langua-ges, cultures, and business cu-stoms.

ACIIA first held the CIIA exami-nations in 2001 and to date morethan 4,960 candidates have suc-cessfully passed the designati-on. The exams have been con-ducted by 27 ACIIA Societieswith CIS Nigeria being the latestsociety to hold the examinationsfor the first time this session.The March session was also aninaugural experience for the Li-thuanian society FAA, who ad-ministered the foundation ex-aminations to their candidatesthat are currently using the

®

ACIIANEWSNewsletter of the Association of Certified International Investment Analysts ACIIA

March CIIA Examinations

The completion of the CIIA ex-aminations on March 5th and 6thmarked the nineteenth occasionin which the exams have beensuccessfully administered.

The examinations were heldworldwide and more than 1’000candidates endeavoured to takeon the challenge that the CIIAexaminations represent.

Since its inauguration in 2000,ACIIA membership has grownfrom nine to thirty-three asso-ciations worldwide. During thistime ACIIA has established itselfas a valuable forum for theexchange of knowledge, ideasand education in the internatio-nal investment field. The mem-bers are spread throughout

No 26 / April 2010

ACIIA Chairman Mr Fritz H Rau at the examinations held by SFAA in Interlaken

CONTENTS

1 March CIIA Examinations

2 The 1st CIIA exams successfully took place in Lithuania

Certificate in Gold and SilverMarkets – A Collaborationbetween HKSI and the Chine-se Gold and Silver Exchange

3 The Unveiling of a StrategicPartnership – HKSI and American Express

The 7th PRC Securities Regu-lations Examination to be heldin Hong Kong in May 2010

4 “Corporate Governance andInstitutions in China” by HKSIBoard Member ProfessorSimon S.M. Ho

XBRL reporting to be adoptedin Taiwan this year

SFI signs the MOU with HKSI through the cooperativeefforts of SAA CT

5 Forthcoming ACIIA CM andAGM in Geneva

SAAJ’s 1st International Seminar Launched

7 GIPS Seminar held in Tokyo

The Insurance Sector inSpain

8 XXXVI Day of Financial Perspectives

Research Awards 2010 – Fundación de Estudios Financieros – Bases

10 EFFAS 2010 Summer School,3rd edition, to be held in TheSantander Financial City

Boadilla del Monte, Madrid,Spain on 7th – 9th July 2010

11 The KCIAA 2010 MembershipCeremony

12 Agenda

2ACIIANEWSNo 26 / April 2010

The 1st CIIA exams successfully took place in LithuaniaOn March 4th and 5th, 2010, theFinancial Analysts’ Associationin Lithuania administered theexams for the first time in Vil-nius. Two CIIA candidates tookall three Foundation level examsand a third candidate chose totake the first Foundation levelexam.

Deimante Teresiene, a financialbroker in one of Lithuania‘s banks,successfully passed all threeFoundation level exams andshared her impressions;

“I’m very glad that the time Idedicated to the CIIA was eval-uated with great results. Therewas quite a lot of preparationmaterial, but it was given in avery clear manner and withpractical examples whichhelped to put the theoreticknowledge into practice. I al-ways had the CIIA preparationmaterial in my handbag andread it whenever I had a freemoment.”When asked why she specifi-cally chose this designation,

Deimante answered;“I’m interested in theCFA, in FRM and PRM,which is why I am ac-quainted with all oftheir specifics andpreparation material.The CIIA has the ad-vantage of getting thedesignation quickly, inthe case of passing the examssuccessfully, while the CFAtakes at least 1.5 – 2 years.”Daiva Rakauskaite, President ofFinancial Analysts’ Association,

commented: “Becom-ing a member of ACIIAoffers greater learningand career opportuni-ties for financial ex-perts in Lithuania. Asfor the CIIA designa-tion, given by ACIIA -we hope that it willsoon become a quality

status for Lithuania’s financialexperts.”The next CIIA exam session inLithuania is due to take place inSeptember. ●

L I T H U A N I A

Certificate in Gold and Silver Markets – A Collaboration between HKSI and the Chinese Gold and Silver Exchange

The HKSI is pleased to reportthat the Graduation Ceremony ofthe 1st intake of Certificate ofGold and Silver Markets, in col-laboration with the Chinese Goldand Silver Exchange (CGSE) wassuccessfully held on March 12th2010. The Institute is honouredto have had the following guestsattend the ceremony:

• The Honourable Chim PuiChung, Member of the Leg-islative Council

• Mr. Cheng Yan-chee, JP.Deputy Secretary for Finan-cial Services and TreasuryBureau

• Mr. Lee Tak Lun, President ofthe Chinese Gold and SilverExchange

• Ms. Barbara Shiu, Chair-woman of the Hong Kong Se-curities Institute

• Mr. S.F. Wong, Chief Executiveof the Hong Kong SecuritiesInstitute

The collaborative programme,Certificate of Gold and SilverMarkets, was conducted in the

last quarter of 2009. The pro-gramme consists of two levels.Level 1 is 16 hours long and isdesigned for Traders and Ac-count Executives. Level 2 is 4hours long and is designed forRegistered Managers. ●

H O N G K O N G

Graduation Ceremony of the 1st intake of Certificate of Gold and Silver Markets

CIIA student Ms. Deimante Teresiene

3ACIIANEWSNo 26 / April 2010

The two new co-branded cardshave been specifically designedto recognise the status of HKSImembers in the financial sector.“The introduction of the newcards mark another milestone inour affinity card strategy,” saidMr Kenneth Lee, Vice President& Head of Consumer Card Prod-ucts and Marketing, Hong Kong,American Express International,Inc. “We tailor-designed the twocards to provide a series of ben-

efits to members of the HongKong Securities Institute, to re-flect their lifestyle and profes-sionalism. We will continue tofurther extend the reach of theAmerican Express brand andour premium products to moreaffluent professionals, providethem with unsurpassed benefitsand complete with first-class

The Unveiling of a Strategic Partnership – HKSI and American Express

services to cater for theirlifestyle needs.”

“It is our pleasure to collaboratewith American Express to launchco-branded cards,” said Mr SFWong, HKSI Chief Executive.“The variety of privileges willbroaden the range of benefitsavailable to HKSI members.” ●

On March 30th, the Institute an-nounced its collaboration withAmerican Express to introducetwo new co-branded cards inHong Kong - the Hong Kong Se-curities Institute American Ex-press Platinum Credit Card andthe Hong Kong Securities Insti-tute American Express GoldCredit Card - which extendAmerican Express privileges tomore professionals in HongKong.

China (SAC) developed the PRCSecurities Regulations Exami-nation for Hong Kong profes-sionals. Hong Kong profession-als can now complete aspecified examination on thelaws and regulations of theMainland, in order to be eligibleto apply for the correspondingindustry qualification from SAC,subject to any other require-ments of the Mainland.

The Institute has been appoint-ed by SAC as the sole agent forhandling the enrolment and ad-ministration of the examinationfor Hong Kong professionals.The first examination was heldin Shenzhen in 2004 with thefavourable response from theHong Kong professionals. Since2005, the examination has beenheld annually in Hong Kong toprovide further flexibility for our

The 7th PRC Securities Regulations Examination tobe held in Hong Kong in May 2010

professionals. In 2010, the sev-enth examination will be held inHong Kong on Saturday, May29th 2010.

Enrolments will be coordinated bythe HKSI and start on March 29thand finish on May 10th 2010. Therelevant enrolment forms and de-tails about the examination areavailable from the HKSI office andwebsite www.hksi.org ●

With the implementation of theCloser Economic PartnershipArrangement (CEPA), HongKong professionals in the secu-rities and investment industryare offered a fast track opportu-nity to obtain the required indus-try qualification to practice inthe Mainland financial markets.

In light of the above agreement,the Securities Association of

American Express representative Mr Kenneth Lee and HKSI Chairwoman Ms Barbara Shiu

HKSI Board Members and American Express Representatives Celebrating theLaunch of HKSI AE Co-branded Cards. (From left) Mr SF Wong, Ms Amy Ho, MrDesmond Leung, Mr Craig Lindsay, Mr Kenneth Lee, Ms Barbara Shiu, Mr ColinShaftesley and Miss Angelina Kwan

HKSI Chief Executive Mr SF Wong and SAA CT Secretary General & SFI President Mr Chingpo Chiu, signed the MOU in Taipei

4ACIIANEWSNo 26 / April 2010

forms in the Mainland, whichcontain concrete data and inci-sive analysis, exert consider-able influence on corporategovernance reforms in theMainland and Hong Kong.

Over a hundred of these reviewswere incorporated into a collec-tion entitled Corporate Gover-nance in China: A Critical Analy-sis, which was published in theMainland at the end of 2006.After subsequent revision andaugmentation, the collectionhas been republished in Hong

Kong under the new title, Corpo-rate Governance and Institu-tions in China.

This book lays its focus on thespecific operations of the cor-porate governance system andpresents numerous case stud-ies. It is of great benefit to theaverage Mainland businessper-son, as it facilitates continuousupdates on the knowledge ofcorporate governance, promo-tion of advanced practices andenhancement of corporate gov-ernance and performance. ●

HKSI Board Director ProfessorSimon S. M. Ho recently pub-lished a book, in Chinese, on“Corporate Governance and In-stitutions in China.”

Prof. Ho is a columnist on cor-porate governance for therenowned Hong Kong EconomicJournal. The weekly reviews ongovernance and financial is-sues have received high ac-claim from readers and thebusiness circle. The articles onthe development of corporategovernance and financial re-

“Corporate Governance and Institutions in China”by HKSI Board Member Professor Simon S.M. Ho

“Corporate Governance and Institutions in China” by Prof. Ho

XBRL reporting to be adopted in Taiwan this yearC H I N E S E T A I P E I

tember 2010. Under the guid-ance of the regulatory authority,Taiwan Stock Exchange (TWSE)has established a policy for theadoption of XBRL for the filing offinancial reports across the

capital market in order to alignwith international trends andenhance the information trans-parency and international visi-bility of its securities market.TWSE has also been proactive-

ly pushing for the implementa-tion of the XBRL plan. The initialpreparation work is complete,paving the way for the adoptionof XBRL for the filing of financialreports in 2010. ●

A proposal for filing financial re-ports using Extensible BusinessReporting Language (XBRL) hasbeen approved by the FinancialSupervisory Commission (FSC)and will be implemented in Sep-

SFI signs the MOU with HKSI through the cooperative efforts of SAA CT

Securities and Futures Institute(SFI) and Hong Kong SecuritiesInstitute (HKSI) signed a Memo-randum of Understanding (MOU)on March 26th 2010 in Taipei.HKSI Chief Executive, Mr SFWong and SFI President, MrChingpo Chiu signed the MOUon behalf of their organisations.Since the SAA CT joined ACIIAas an Associate Member in April2005, SFI has made efforts tostart up the CIIA exam programfor the SAA CT. Over past fewyears, SAA CT has actively de-veloped a closer working rela-tionship with the international fi-nance community, which haslead to a good start for coopera-tion between the SFI and HKSI.

The purpose of the MOU is toprovide the framework for fur-ther cooperation in areas of ex-amination and training. Both or-ganisations agree that the MOUwill not only facilitate profes-sional exchange, but will alsoencourage the sharing of bestpractices. In the near future, theSFI and HKSI will collaborate tooffer the Licensing Examination(LE) for Securities & Futures In-termediaries in Taiwan.

The HKSI will also support theSFI in providing related trainingprograms for those market prac-titioners who are interested inentering the Hong Kong finan-cial services industry. ●

The Beau Rivage founded in1865 is renowned for its tradi-tional luxury and is legendary forbeing the place where Empress“Sissi” left her mark. The dinnerwill be attended by the SFAAChairman and various SFAABoard members.Geneva is a beautiful and vi-brant city with quays, lakeside

promenades, countless parks,lively streets and elegant shopsand the Swiss association islooking forward to welcomingdelegates and sharing all thatGeneva has to offer. ●

5ACIIANEWSNo 26 / April 2010

The main representatives fromthe ACIIA member associationswill be present in Geneva fromTuesday, June 22nd to Friday,June 25th to attend the ACIIAmeetings. EFFAS representa-tives will also be present for theEFFAS AGM.

The 3 day meetings will include:• Tuesday 22nd, the meeting of

the Board of the ILPIP. • Wednesday 23rd, the ACIIA

Council Meeting, and on Thurs-day 24th, the ACIIA AnnualGeneral Meeting. All eventswill take place at the Credit Suisse Forum in Geneva with lunches to be held at the Beau Rivage hotel situated in a prime position by the beautiful lake of Geneva.

EFFAS will hold its Annual Gen-eral Meeting on Friday 25th alsoat the Credit Suisse Forum.

On Thursday 24th, the Swiss Financial Analysts AssociationSFAA, will invite ACIIA andEFFAS representatives to a galadinner at the Beau-Rivage hotelfrom 19:30.

Forthcoming ACIIA CM and AGM in Geneva L I T H U A N I AS W I T Z E R L A N D

SAAJ successfully launched theFirst International Seminar onFebruary 18th and 19th 2010, atthe Gakushikaikan Hall with 70

participants, following the clo-sure of the SAAJ – CFA Institutejoint-seminar last year. The sem-inar focused on the latest in-

sights into theories and prac-tices in investment management,supported by supranational or-ganisations of professional fi-

nancial analysts: ACIIA (the Association of Certified Interna-tional Investment Analysts), ASIF(Asian Securities and Invest-ments Federation), and EFFAS(the European Federation of Fi-nancial Analysts Societies). Fol-lowing the significant impact ofthe global financial crisis, thisseminar studied lessons to belearned and explored critical is-sues regarding the shape of in-vestment management strate-gies going forward.

Prominent internal and externalpractitioners discussed varioustopics as shown in the programbelow. Case study analysisthrough group and general dis-cussions offered participants theunique opportunity to learn aboutvarious ideas and thoughts basedon a practical case scenario.

SAAJ’s 1st International Seminar Launched J A P A N

The symbol of Geneva is the "Jetdéau" - a fountain with a 140 metrehigh water jet at the periphery of Lake Geneva.

Outline of Programs

Thursday, February 18th 2010

09:30 Welcome and Opening Remarks09:45 Session 1

Does Institutional Investing Have a Future?Keith P. AmbachtsheerPresident and FounderKPA Advisory Services Ltd.Director and Adjunct Professor of Finance Rotman International Centre for Pension ManagementUniversity of Toronto

11:20 Session 2 The Future of Financial EngineeringYasuyuki Kato, CMASenior Executive OfficerGlobal Research DivisionNomura Securities Co., Ltd.Visiting Professor, Kyoto University

13:40 Session 3Building Better Portfolios – What Remains of Financial TheoryKevin KneafseyManaging DirectorBMACS Investment Research Portfolio Management GroupBlack Rock Institutional Trust Company, N.A.

15:25 Session 4 – Panel DiscussionExploring New Pension Investment Strategies after the Financial CrisisPanelists:Andrew KirtonPresident and Global Head for Investment Consulting, MercerHideo KondoAsset Management DirectorDIC Pension FundNoriyuki Morimoto, CMAPresident and CEOHC Asset Management Co., Ltd.Moderator:Hiroshi Miyai, CMAExecutive Managing DirectorNikko Financial Intelligence, Inc.Visiting Professor, Chuo Graduate School of Accounting

17:00 Case Study Introductory SessionManabu Yano, CMAInvestment Officer and Head of Quantitative Research, Indexing and Quantitative Investment DepartmentThe Sumitomo Trust and Banking Co., Ltd.

17:30 Reception19:00 Hall 201, Gakushikaikan

Friday, February 19th 2010

09:30 Session 5Investment Strategies for High Net- Worth Investors – Paradigm Shift after the Financial CrisisTakashi YonedaPresidentAforL Ltd.

11:05 Session 6Rethinking Alternative InvestmentsAndrew KirtonPresident and Global Head for Investment Consulting, Mercer

13:30 Session 7 – Case Study: Group DiscussionPension Fund Investment Strategies: Returning to the Basics and Future EvolutionManabu Yano, CMAInvestment Officer and Head of Quantitative Research, Indexing and Quantitative Investment DepartmentThe Sumitomo Trust & Banking Co. Ltd.

Participants will be divided into groups and based on acase, discuss:• What has happened in pension fund management and

some lessons learned from the financial crisis• Revisiting objectives of pension fund management• Practical usage of LDI in Japanese pension fund

management

16:00 Session 8 – Case Study: General DiscussionPension Fund Investment Strategies: Returning to the Basics and Future EvolutionManabu Yano, CMAInvestment Officer and Head of Quantitative Research, Indexing and Quantitative Investment DepartmentThe Sumitomo Trust & Banking Co., Ltd.General discussion will be made based on the outcome ofgroup discussions on the case.

17:40 Closing Remarks

SAAJ’s 1st International Seminar Launched

6ACIIANEWSNo 26 / April 2010

The Insurance Sector in Spain

7ACIIANEWSNo 26 / April 2010

GIPS Seminar held in Tokyo SAAJ held the GIPS Seminar onMonday, March 8th 2010 inTokyo for the purpose of explain-ing the key points of major revi-sions in the 2010 edition of GIPS(Global Investment Perfor-mance Standards), which wasapproved by the GIPS ExecutiveCommittee on January 29th, aswell as their practical implica-tions. The seminar attractedabout 200 participants and hadlively discussions includingquestions and answers ses-sions.

There were four sessions deliv-ered by the speakers who aremembers of SAAJ - IPS Commit-tee and concurrently membersof various GIPS Subcommitteesand Working Groups:The four sessions were:1. “Outline and main points of

GIPS 2010 edition” by YohKuwabara, Chairman ofSAAJ-IPS Committee, mem-ber of GIPS InterpretationsSubcommittee

2. “Disclosure of verificationstatus and revision of verifi-

S P A I N

The Fundación de Estudios Fi-nancieros (FEF), chaired byXavier Adserà, presented "AStudy on the Insurance Sector inSpain" on March 11th 2010,which aims to assess the situa-tion of this important sector andto make proposals that adapt tothe challenges being faced atthe moment. The study aims tocontribute to the reflexion due tothe imminence of far-reachinglegal reforms, affecting this sec-tor. The event was closed by D.Ricardo Lozano, General Direc-tor of Insurance and PensionFunds.

The work was led by Ms. PilarBlanco-Morales and enjoyed the

cooperation of various entities,Founders of the FEF: Mapfre,Zurich, Ernst & Young, Deloitte,KPMG, PricewaterhouseCoop-ers and Uria Menendez. Otheroutstanding individuals from ac-ademia and professionals con-tributed their articles and / oropinions to enrich the study.

The publication includes an eco-nomic legal and sociologicalanalysis, and it provides sectorialinformation on the insurance sec-tor. It aims to offer an accuratepicture of the Spanish insuranceindustry, reviewing its structureand business model, attemptingto reveal the trends in their devel-opment and social penetration. Itevaluates their state of solvencyand capitalisation, and analyzesthe impact of ongoing reforms,especially Solvency II.

The report consists of two parts.The first contains the ExecutiveSummary of all the contributionsreceived as well as the conclu-sions and recommendations ofconsensus reached at the WorkTeam and Advisory Group meet-ing. The second part consists ofseveral articles that provide acomprehensive and full overviewof the insurance industry and itschallenges, put together by veryrelevant authors from the aca-

demic, professional and the ad-ministration sector, who knowthe situation profoundly and fromdifferent angles.

Main conclusions and recom-mendations of the study:With regard to the financial cri-sis, the study confirms the sta-bilising role played by insurancecompanies due to its anti-cycli-cal investment behaviour. In thisregard, it is noted that insurersdo not constitute a systemic risknor are they required to reducetheir assets to remain solvent.Its investments are due to crite-ria of moderation, prudence andinvestment with a long-termhorizon, preferably in bonds andfixed income.

In connection with the supervi-sion model, it is considered nec-essary to move towards a dy-namic scheme, in line withinternational trends and in par-ticular with the design of the Eu-ropean System of Financial Su-pervision (ESFS), which hasassessed the needs and partic-ularities of insurance to consol-idate a sectorial model. TheSpanish supervisory financialframework is also called toevolve in the short term, and re-gardless of the decisions takenin our country, the final model

should recognise the peculiari-ties of insurance, their needsand problems, with a clear ob-jective: efficient protection ofthe rights of policyholders.

The study warns that Solvency IImeans an important challengefor the insurance industry as itestablishes a new common reg-ulatory framework in the Euro-pean Union. This new model willcompel to establish and docu-ment a model of integrated riskmanagement as well as in-crease transparency, improveinformation and strengthenmechanisms for the protectionof policyholders. However, itdoes not censor freedom of or-ganisation and self-regulatorycapacity of institutions.

Therefore, in this study the FEFbelieves that, the necessarypreparation to adapt to the re-quirements of Solvency II re-quires a stronger commitment ofthe sector in the Governmentand Corporate Social Responsi-bility area. In this sense, thestudy recommends a greater im-plication of companies and anincreased level of concern regarding these matters, partic-ularly in the more traditional fab-ric and smaller Spanish insur-ance sectors.

FEF-IEAF Chairman Mr Xavier Adserà,Director of Study Ms Pilar Blanco-Morales and General Director of Insurance and Pension Funds Mr Ricardo Lozano.

cation procedure” by SeijiKamiya, CMA, member ofSAAJ-IPS Committee, mem-ber of GIPS Verification Sub-committee

3. “Revisions to real estate sec-tion” by Eriko Kato, member ofSAAJ-IPS Committee, mem-ber of GIPS Real Estate Work-ing Group

4. “Revisions to private equitysection” by Tetsuro Higuchi,CMA, member of SAAJ-IPSCommittee, member of GIPSPrivate Equity Working Group

8ACIIANEWSNo 26 / April 2010

The economic crisis and thegrowth of the saving rate ofSpanish families, identified inrecent times, is a major chal-lenge for the insurance industry.The new reality recommends thatthe insurance industry developand improve products and servic-es to respond with a dynamicoffer to the new model of savings.

Moreover, the aging populationis an opportunity for the insur-ance industry, especially in theareas of insurance dependency,health and life. Private insur-ance is particularly useful inproviding a quality solution tothe problem of dependence. De-spite the risks inherent in thistype of insurance, nothing pre-vents the design of productsthat meet this contingency,based on appropriate calcula-

tions to ensure that the periodbetween the collection of premi-ums and payment of the benefitis sufficient. Complementarity inthis area of the insurance sectorwith the public coverage systemis needed at present due to thelack of public resources.

Finally, the study recommendsthat regulators design a suitableand stable tax law that encour-ages family savings. It draws at-

tention to the accumulation oflegal changes in the tax area thataffects family saving products,while those who save demand se-curity and stability. It is inappro-priate to modify forth the legalregime applicable to the productsof long-term savings. However, iflegislative changes are carriedout, the meaning of the changeshas to be favourable to those sav-ing, if it really seeks stimulation ofsupplementary welfare. ●

Continued from page 7

speakers' table, by Dr. JoséLuis Escrivá, Director of theBBVA Research Department,Dr. Jose Luis Martinez Cam-puzano, strategist at Citi inSpain and Dr. Cesar Molinas,Founding Partner of Multa Pau-cis and who analyzed themacroeconomic outlook andmarkets for 2010.

The speakers highlighted agreat deal and at the end oftheir speeches a colloquiumwas opened between thespeakers and attendees to theceremony. ●

XXXVI Day of Financial PerspectivesOn February 16th the XXXVI "Dayof Financial Perspectives"which is organised annually bythe Spanish Institute of Finan-cial Analysts, was held at theHotel Palace in Madrid.

The Institute invited three highlyskilled speakers to lecture onthe prospects for 2010. Eachspeaker held a different point ofview.

Dr. Xavier Adserà, President ofIEAF, opened the meeting andmoderated the symposium andwas accompanied, at the

BASE 4 – PRESENTATION:The paper must be written inSpanish or English. It must beoriginal and unpublished and itmust be signed with a pseudo-nym.

The paper must be presentedwith a title, an original and twocopies properly bound and indigital format (CD) recorded inWord, in standard size sheets(DIN-A4). Its maximum length is100 pages.

This extension does not includeindexes, statistical appendices,

Latin America. If it were a re-search team, they must identify itsmain responsible. Each person orteam applicants must submit onlya single research.

BASE 2 – TOPICS THAT CAN BEOBJECT OF THE RESEARCH:Topics must relate to the fieldsof study of finance, financialmarkets and intermediaries andfamily savings.

Within this general framework,the Jury will evaluate the pro-posals relating to specific is-sues that have been studied by

the Foundation in recent yearsand published in its collection"Papers of the Foundation."

BASE 3 – RELEVANT MERITS: The Awards Jury will assess thequality of the research, its ap-plied character and contribu-tions about new content and so-lutions to the topics beinginvestigated in order to optimisethe knowledge of the matters re-ferred to in paragraph 2 of thebases.

Research Awards 2010 – Fundación de Estudios Financieros – Bases"The Fundación de Estudios Fi-nancieros (FEF) (hereinafterFoundation”) in order to encour-age and recognise the researchand study in the areas of Finan-cial Markets, Economics, and Fi-nance and Institutions and Enti-ties providing Financial Services,calls the "Research Awards 2010of the Foundation” (hereinafter"Awards"). The Bases of theseAwards are detailed below"

BASE 1 – PARTICIPANTS: Eligible for these Awards are indi-viduals and / or research teamsfrom the European Union and

From left to right: Citi Spain Strategist Mr José Luis Martínez Campuzano, Director of Studies BBVA Mr José Luis Escrivá, Founder Partner of Multa Paucis Mr Cesar Molinas, FEF-IEAF Chairman Mr Xavier Adserà

9ACIIANEWSNo 26 / April 2010

ment, by the award-winningauthor, to the FEF, in exclusiveway and for the maximum pe-riod of three (3) years, of allthe rights to exploit the corre-sponding works, in any formatand language, for free distri-bution by any means, amongits Founding fathers, membersof the various organs of the in-stitution, collaborators, etc..,without prejudice to the rele-vant author copyright, resign-ing the author or authors to besubject of their approval tothe print test and acceptingthat any possible compensa-

tion to which they may be en-titled as a result of the indicat-ed assignment of the edition isunderstood as paid in full withthe amount received by theprize.

Despite the abovementionedand without prejudice to theoriginal and unpublishedcharacter of the works to thedate of submission, they maybe under review process inpublications directed exclu-sively to research and pub-lished in the period of time between the date of presen-tation of the work and thedate of communication of thedecision of the Jury, althoughwith full safeguarding of thewhole rights of exploitation of

the FEF, according to the firstparagraph. For his purposethe participant who intends toperform the above publica-tion, in the specified period oftime, should save and ex-pressly communicate to thepublisher the existence of anyrights of exclusive exploita-tion of the FEF, also notifyingto FEF his intention to publishthe work and the fulfilment ofthis obligation. The violationof any of these rules will result in the automatic exclu-sion of the participant con-cerned and, where appropri-ated, the withdrawal of theaward given.

Once made public the deci-sion of the Awards, the au-thor/s not winners will be freeto publish their works, beingof application to the winnersthe rules mentioned in thefirst paragraph of this base.

2. The FEF may request an adapt-ed version of the work in oneof the documentary supportsused by the Foundation: Mag-azine “Análisis Financiero”,Monographs of the Founda-tion, Library “Fundación de Es-tudios Financieros”, Collec-tion “Papeles de la Fundaciónde Estudios Financieros”, orin any other formats.

3. The Foundation assumes noobligation to publish the win-ning works. In this sense, ifthe FEF decides expressly notto publish the winning works,the winning works may befreely published outside ofthe FEF, citing in the acknowl-edgments section that thiswork has won a prize from it.

BASE 11 – ACCEPTANCE OF THE RULES: Participation in the applicationsof these awards constitute ac-ceptance of these Bases, andthe decision of the Jury can notbe appealed. ●

nomic, business and academic,appointed by the Foundation.Among them, one shall act asChairman and another as Secre-tary.

The Jury composition shall bemade public after learning of theruling of the Awards through theFEF website.

Each member of the Jury willvote. The decision shall be by asimple majority vote of its com-ponents. In case of a tie, the voteof the Chairman shall decide theresult.

BASE 8 – FAILURE OF THE AWARDS:The ruling of the Awards will bepublished in October 2010, andwill be notified to the winnersthe next day.

BASE 9 – CEREMONY AWARDS:Prizes will be awarded to win-ners at a public event organizedby the Foundation and it will becommunicated in due course. The winners must be present atthe ceremony of the Awards.

BASE 10 – INTELECTUAL PROPERTYRIGHTS AND PUBLICATION OFTHE WINNING WORKS: 1. The granting of awards auto-

matically imply the assign-

tables and bibliography informa-tion that may accompany the re-search.

The work must include firstly, asummary (abstract) of one pagemaximum, which identifies theobjectives and main conclu-sions of the investigation.

Along with this documentation, asealed envelope which includesthe title of the work, name andthe pseudonym of the author orauthors must be attached. Thedocument must contain thesame information and the appli-cant name/s of author/s, ad-dress, telephone, email address,identity number, and a brief CV ofthe author and / or authors of theresearch.

The bases and the Call forAwards can be found on thewebsite of the Foundation(www.fef.es) Emails enquiriesto: fef@fef.es

BASE 5 – PLACE AND TIME: The works may be presented orsent by registered mail to theheadquarters of the Foundation:Avenida de Brasil, 17 to 3 ° A andB, 28020 Madrid, Spain.

The opening date for entries isMarch 15th 2010 and the dead-line June 30th 2010. BASE 6 – PRIZE:Awards will be the total amountof twenty-four thousand Euros (Euro 24,000). The first prize willbe eighteen thousand Euros(Euro 18,000). Optionally and de-pending on the quality of otherpapers presented, the Jury maygive up to two more consolationprizes of three thousand Euroseach (Euro 3,000).

In the case that no one wins thefirst prize and / or the two con-solation prizes, the amount willaccumulate for subsequent edi-tions.

BASE 7 – JURY: The Jury shall consist of at leastseven members, selected fromrecognised experts in the eco-

10ACIIANEWSNo 26 / April 2010

well as professors / lecturersfrom various national associa-tions gives the EFFAS SummerSchool a truly internationalcharacter.

There will be simultaneous ple-nary sessions and workshops,and lectures on current topics ofinterest will be given by profes-sors and experts from variousindustry sectors. This Seminar isrelevant for all investment pro-fessionals; it is also relevant for

the various EFFAS and ACIIAdesignation holders and canalso be considered by potentialcandidates for various designa-tions (e.g. the CEFA, or the CIIAdesignation), or potential mem-bers of the respective nationalorganisations.

The EFFAS Summer School sup-ports the concept that, in additionto qualification, exchangingviews and networking, are key forprofessional development. ●

EFFAS 2010 Summer School, 3rd edition, to be heldin The Santander Financial City Boadilla del Monte,Madrid, Spain on 7th – 9th July 2010To enhance the networking be-tween existing EFFAS designa-tion holders, CEFA and CIIA can-didates and other investmentprofessionals, EFFAS, with thesupport of IEAF and the BancoSantander Group, is organisingthis years EFFAS SummerSchool in Madrid, in the San-tander Financial City (Boadilladel Monte – Madrid), starting onWednesday July 7th and finish-ing on Friday July 9th 2010. Theattendance of participants, as

Paradigm shift in India Inc I N D I A

The rapid rise of the Indian cap-ital markets has been attractingthe world’s attention over thepast 4 – 5 years. An economicexpansion of 8%+ driven by aconsumption and investmenttheme is running quite high inIndia, today. The Indian econo-my is experiencing the mostunique times, as it has rarelyseen an upturn in consumptionand investment, whereas other-wise either of the two precedesor succeeds and peters out.

The Indian capital markets, thebiggest beneficiary of this eco-nomic expansion has more than4,500 listed stocks out of whichnearly 50% are actively traded.Its breadth and width providesopportunity for a different set ofinvestors at different points oftime. India has a strong capitalmarkets regulator, Securitiesand Exchange Board of Indiaand companies go through rig-orous parameters for listing andfaces penalty on non compli-ance of listing agreements by

the stock exchanges. Even theaccounting standard and poli-cies of the country are one of thebest in the world.

The quantitative parameters ofeconomy and capital marketchanges are widely quoted bythe media, let me put forth alesser known dimension put for-ward by corporate India, astrong foundation for long termsustainable growth of capitalmarkets. The three key things,which I believe have witnessedsignificant change in the lastfew years and have had a pro-found impact on investors andthe way corporate businessesfunction.

One of the most importantchanges that I have seen, in thecurrent economic progress isthe changing mindset of the pro-moters shift for value creationand this has taken precedenceover other things. Earlier che-quered history of the Indian cap-ital market, from 1992 – 2001, leftmany investors high and dry. Itequally took a long time for pro-moters to realise the value ofstock as a reflection of currencylisted on the stock exchanges.But now the promoters are nolonger opportunists, rather themajority of them, echoes valuecreation for stake holders intheir thought and action. Thatchange that will leave an indeli-

ble impression on domestic andoverseas investors. The marketcapitalisation has expanded andnow the country has quite alarge number of world classcompanies, operating in variouspart of the world.

Just to substantiate this with anexample, qualitative parameterslike Management DiscussionAnalysis (MDA), Details of per-formance in Director Report,Numbers of Independent Direc-tors on Board have undergonesignificant changes and haveimproved substantially in the an-nual report. This conveys a re-view and future outlook of thebusiness, giving direction to in-

vestors of things to come. Sur-prisingly, promoters led compa-nies are willing to share moredetails in MDA than listed MNCcompanies. The CLSA- ACGApaper on corporate governancein ASIA has placed India wayahead of others in the region.

Secondly, cross sections ofcompanies are eager to adopttechnology to gain efficiencyand productivity. Corporatecompanies from all disciplines,irrespective of their revenuesize are willing to implement En-

terprise Resource Planning(ERP), JIT, CRM tools to enhanceproductivity. Critics may com-ment that competitive pressure;low cost of ERP package isamong a few reasons for this ea-gerness, whatever may be therationale, I am impressed by thissweeping change. This willleverage the cost competitive-ness of India Inc tremendously. Last but not least - a new face ofchanging India, which under-stands the value of human re-sources is addressing agencyproblem, is aligning interests of

managers by the way of ‘per-formance linked pay’, ESOPsand other incentives. Organisa-tions are getting flat and are encouraging entrepreneurship.Organisational culture has be-come one of the key determiningfactors in attracting talent, asthe bulk of the new work force isyoung and aspiring.

So let me remind readers thatthe majority of the companies inIndia are promoter driven, unlikeprofessionally managed compa-nies in developed countries.

These changes will have a deepimpact on corporate India andbenefit investors. I am sure thattomorrows India will be muchbetter and different from whatwe are seeing today.

By Manish Bhandari, April 2010(“This is the opinion of Mr Man-ish Bhandari, CIIA, Founder Val-lum Capital, an Investment firm,based in Mumbai. The author isan ex-fund manager of ING In-vestments India, and hasworked for more than 10 years inthe Indian capital markets.”). ●

11ACIIANEWSNo 26 / April 2010

Chart 1 Chart 2

The KCIAA 2010 Membership Ceremony K O R E A

The KCIAA held its membershipceremony on January 15th, 2010.The ceremony took place in theKorean Financial InvestmentAssociation Building in Seoul,Korea and was attended to bythe KCIAA Board of Directors aswell as this year’s new mem-bers.

in November 2009, with 15 suc-cessfully passing the exam.

At the membership ceremony,Mr. Kun Ho Hwang, Chairman ofthe KCIAA, congratulated thenew members on their dedica-tion and efforts in passing theexamination.

With this year’s new members,the membership of the KCIAAhas now grown to 1,543. ●

Among the 16 new members, 15successfully passed the qualifi-cation examinations held in2009. More than 2,100 candi-dates sat the preliminary exami-nations held in May and October2009, with 225 successful candi-dates. Of that number, 63 candi-dates sat the final examination

KCIAA Chairman Mr Kun Ho Hwang (sixth from right) pictured with members of the KCIAA board of directors and the new KCIAA members that were present at themembership ceremony.

12ACIIANEWSNo 26 / April 2010

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AgendaEvents

CIFA Forum28 – 30th April 2010, Madrid

Sustainability Forum Frankfurt17th May 2010, Frankfurt

Frankfurt Global Business Week17 – 21st May 2010, Frankfurt

TBLI Conference ASIA 27 – 28th May 2010, Tokyo

EFFAS Summer School7 – 9th July 2010, Madrid

EFFAS ESG Conference14 – 15th September 2010, Frankfurt

SAAJ 25th Annual Conference8th October 2010, Tokyo

50th Anniversary ABAF / BVFA Belgium14th October 2010, Brussels

Euro Finance Week15 – 19th November 2010, Frankfurt

Meetings

ILPIP Meeting 22nd June 2010, Geneva

ACIIA Council Meeting 23rd June 2010, Geneva

ICIA Meeting23rd June 2010, Geneva

ACIIA Annual General Meeting24th June 2010, Geneva

EFFAS Annual General Meeting25th June 2010, Geneva

ACIIA Council Meeting10th November 2010, Tokyo

Seminars

Asset Allocation: From basics to new challenges11th June 2010, SFAA Switzerland, Zürich

Fundamentals of Commodity Markets24th September 2010, SFAA Switzerland,Zürich

The Analysis and Management of Risk7th October 2010, IEAF Spain, Madrid

CIIA 10th Anniversary Seminar11th November 2010, SAAJ Japan, Tokyo

Investing in Commodities12th November 2010, SFAA Switzerland,Zürich

Real estate in the 21st century2nd December 2010, SFAA Switzerland,Zürich

EFFAS International Seminar15th December 2010, Paris

CIIA Final Examination Dates

September 2010Friday 17, in Europe, New York and SouthAmerica;Saturday 18, in Asia

March 2011Friday 11, in Europe, New York and SouthAmerica;Saturday 12, in Asia