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The Securities & Investment Institute Diploma is a regulatory qualification. The examinations are designed by practitioners to test candidates' ability to deal with practical business problems. The examinations reflect situations and issues that practitioners will encounter and require candidates to apply their knowledge to answer case studies, write reports, and explain techniques and terms.
Candidates should read around the subject as well as reading past papers and chief examiners' reports.
Examinations are demanding and candidates are advised to attempt only one paper at each sitting. The Diploma typically takes between 18 months and two years to complete.
The FSA recognises the Diploma (provided it includes a pass in Regulation and Compliance) as an approved qualification for many of the specified activities including: advising on and dealing with investments in securities, managing investments in relation to venture capital.
For a full list of activities and approval for the Diploma please refer to the FSA website.
Diploma subjects:
- Bond and Fixed Interest Markets
- Corporate Finance
- Financial Derivatives
- Fund Management
- Global Operations Management
- Interpretation of Financial Statements
- Investment Analysis
- Private Client Investment Advice and Management
- Regulation and Compliance
For more information on the reading lists please refer to subject syllabuses.
BOND AND FIXED INTEREST MARKETS
Applicable to those who conduct business either as Agent or Principal in government bonds and other fixed interest securities in the UK.
Assessment: Three hours.
The syllabus covers:
- Economics
- Form and structure of securities
- Analysis
- Investors
- Government securities markets
- UK fixed interest market
- International securities
CORPORATE FINANCE
Covers the issues, disciplines and strategies used in advising on and implementing companies' corporate objectives.
Assessment: Three hours.
The syllabus covers:
- Instruments
- Composition and roles of advisory team
- Sources of finance
- Analysis and evaluation of corporate value
- Financing the acquisition
- Risk factors
- Accounting issues
- Regulatory Environment
- Bid/Defence strategies
- Methods of disposal
- Share participation arrangements
- Relationship with clients
FINANCIAL DERIVATIVES
Covers the characteristics of derivatives including forwards, futures, swaps and others traded in the UK, their relationship to the underlying cash securities and their use in achieving investment objectives, as well as being able to control the risks of financial derivatives portfolios.
Assessment: Three hours.
The syllabus covers:
- General principles of registration, clearing margining, settlement, exercise assignment and prices
- Exchange regulations, dealing practice, customer accounts and legislation
- Uses of options
- Uses of futures
- Over the Counter derivatives
- Derivatives Risk Management
- Current topics
FUND MANAGEMENT
Covers the activities and knowledge to undertake the management of funds for institutional clients.
Assessment: Three hours.
The syllabus covers:
- Types of institutions
- Obligations of investment management groups
- Portfolio creation and management
- Portfolio performance measurement
GLOBAL OPERATIONS MANAGEMENT
Covers the regulatory structure of the main markets, the dealing and market environment, risk and control, settlement systems, operations and procedures used in the UK and Internationally.
This exam replaces both Operations and International Operations Management.
Assessment: Three hours.
The syllabus covers:
- Financial markets and products
- Settlement characteristics of products and transactions
- Clearance, settlements and registration
- Asset servicing
- Risk management and control
- International custody
- Treasury and Cash Management
- Fund Accounting
- Current Topics/Future Directions
INTERPRETATION OF FINANCIAL STATEMENTS
Enables holders to assess effectively the securities issued by companies. Candidates will be sent up to 3 financial statements approximately 4 weeks before the exam though they will be examined on only one of these
Assessment: Three hours.
The syllabus covers:
- Interpretation of financial information
- Characteristics of corporate securities
- Accounting terminology and concepts
- Presentation of financial statements
- Corporate taxation
- Overseas accounting practices
INVESTMENT ANALYSIS
Enables holders to evaluate, describe and make recommendations on equity investments for private and institutional investors. Emphasis will be on the UK market.
Assessment: Three hours and fifteen minutes.
The syllabus covers:
- Analysis of company from information pack provided in examination
- Equities, equity related instruments and derivatives, other investment vehicles
- Macro-economic Analysis, trading background, Management policies, accounting policies, Accounts analysis, valuation
- Modern portfolio theory and risk analysis
PRIVATE CLIENT INVESTMENT ADVICE AND MANAGEMENT
Demonstrates the ability to identify clients needs and provide solutions to those needs. Candidates are advised not to attempt this subject until they have passed or completed a course of study for Regulation and Compliance.
Assessment: Three hours.
The syllabus covers:
- Client profile, Client Agreement documentation
- The regulatory framework, UK stock exchanges, the Criminal Justice Act 1993
- Personal taxation, Corporation Tax, Capital Gains Tax, Inheritance Tax, other taxes, Lloyd's
- Government stocks (central, local and foreign), Gilt Strips, Corporate Securities, Warrants, Options, Investment and Unit trusts, Life Assurance policies, Pensions, PEPs, Bank and Building society savings accounts, EIS and VCTs, National Savings, ISAs, OEICS
- UK and overseas markets, dealing, settlement and stockholding systems
- Trusts and charities
- Portfolio structuring - policy, portfolio performance measurement
REGULATION AND COMPLIANCE
Covers the regulatory framework of the financial services industry, participants' legal and ethical constraints, principles and policy.
Assessment: Three hours and ten minutes.
The syllabus covers:
- Financial Services and Markets Act 2000
- Financial Services Authority and its role and powers
- Key provisions of Conduct of Business Sourcebook
- Key provisions of Market Conduct Sourcebook
- Control of substantial holdings, Takeover Code, Insider Dealing, Money Laundering, Conflict of Interest Disclosure
- Dealing, reporting rules of the London Stock Exchange, Liffe, ISMA, other minor exchanges
EU legislation affecting investment business: second banking co-ordination directive, ISD, CAD
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