The European Qualification Framework European Qualifications Framework (EQF) and National Qualifications Framework (NQF) 30th of September, 2010 ASB – Association of Serbian Banks Belgrade Mario Spatafora EBTN President 1st February 2010 - 31st July 2011

European Qualifications Framework What is the EQF? Recommendation of the European Parlamient and of the Council 23 April 2008 on the establishment of the European Qualifications Framework for lifelong learning E uropean Q ualification ramework F

The EQF Political process 22 April 2008 – EQF Recommendation of the European Parliament and the European Council 2010 – Countries invited to refere national qualifications levels to the EQF 2012 – Countries invited to introduce reference to EQF in certificates and diplomas

K.S.C. Learning Outcomes EQF INFORMAL LEARNING NON FORMAL LEARNING

Learning Outcomes - KSC The outcome of the assimilation of information throught learning. Knowledge The ability to apply knowledge and use know-how t0 complete tasks and solve problems. Skills The proven ability to use knowledge, skills and personal development. Competence

Formal Non-formal Informal Learning occurring in an organized and structured environment Formal intentional with structured objectives, time and support Non-formal resulting from daily activities related mainly to work Informal

The European Qualification Framework Translation grid for all Qualifications throughout Europe Supports cross-border mobility Facilitates Lifelong Learning Enables linking Qualifications of different Institutions

Qualification Formal outcome of an assessment and validation process which is obtained when a Competent Body determines that an Individual has achieved learning outcomes to given standards RECOMMENDATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2008

8 EQF Levels Knowledge Skills Competences EACH EQF REFERENCE LEVEL Each of the 8 levels is defined by a set of Descriptors – K.S.C. indicating the Learning Outcomes relevant to Qualifications

8 EQF LEVELS

8 EQF LEVELS

1st February 2010 - 31st July 2011

Partnership: 9 European Partners Pr. Coordinator Applicant Scientific Coord. Evaluator

8 Relay Partners: Belgium: FEBELFIN ACADEMY Hungary: International Training Centre for Bankers Italy: ABIFormazione Italy: BNL-BNP PARIBAS Italy: UNIVERSITY OF ROMA3 Slovenia: Bank Association of Slovenia Spain: Institute of Financial Studies The Netherlands: NIBE-SVV

Aims: Creating a tailor made EQF version for the FSS. Enhancing transparency, recognition of professional qualifications and certificates in FSS. Fostering the mobility of professionals in FSS by defining practical and meaningful EQF Translators. Turning the EQF and the Level Descriptors into a familiar and user friendly reference framework for the community.

MAIN FSS DIFFERENTIATORS Legal and regulatory framework, including ethics/ corporate governance Risk/return orientation Knowledge of financial intermediation Knowledge of financial markets, including macro and microeconomics CRM – Customer Relationship Management Competitiveness/entrepreneurship

Classification of Learning Objectives within education BLOOM’S TAXONOMY Classification of Learning Objectives within education 6 LEVELS

THE VERB HIERARCY Learning Objective Verbs Used Definition 1 Knowledge What you are expected to know LIST STATE DEFINE Make a list of Express, fully or clearly, the details of Facts of give the exact meaning of 2 Comprehension What you are expected to understand DESCRIBE DISTINGUISH EXPLAIN IDENTIFY ILLUSTRATE Communicate the key features of Highlight the differences Make clear or intelligible Recognise, estabilish or select after consideration Use an example to describe or explain something

THE VERB HIERARCY Learning Objective Verbs Used Definition 3 Application How you are expected to apply your knowledge APPLY CALCULATE/COMPUTE DEMONSTRATE PREPARE RECONCILE SOLVE TABULATE Put to pratical use Ascertain or reckon mathematically Prove with certainly or to exhibit by practical means Make or get ready for use Make or prove consistent/compatible Find an answer to Arrange in a table

THE VERB HIERARCY Learning Objective Verbs Used Definition 4 Analysis How you are expected to analyse the detail of what you have learned ANALYSE CATEGORISE COMPARE/CONTRAST CONSTRUCT DISCUSS INTERPRET PRODUCE Examine in detail the structure Place into a defined class or division Show the similarities and/or differences between Build up or compile Examine in detail by argument Translate into intelligible or familiar termis Create or bring into existence 5 Evaluation How you are expected to use your learning to evaluate, make decision or recommendations ADVICE EVALUATE RECOMMEND Counsel, inform or notify Apprais or assess the value of Advise on a course of action

8 EQF Level Descriptors EQF Translators Translated into a commonly used language easy to be applied in the FSS

FIRST EQF Translator (draft) Knowledge - Level 3 Skills - Level 3 Competences - Level 3 Can explain the bank’s role in financial intermediation process Can describe the key elements of the regulatory, legal and compliance framework applicable to the financial services industry, including code of ethics. Can describe key features of core financial products and services Has awareness of risk and understanding of how it influences his/her performance on the job Can assess clients’ basic financial needs and relate them to banking products and services Is able to act respecting the risk profile of products and services adopted by the organisation Can deliver financial services according to relevant legal, regulatory and procedural provisions Can find and apply legal and regulatory information based on precise instruction Shows integrity to comply with adopted rules and procedures Shows awareness of risk factors and understanding of how our performance is affected by risk factors Adapts professional behaviour to the requirements of financial services in a supervised context Exhibits client centric orientation

FIRST EQF Translator (draft) Knowledge – Level 4 Skills - Level 4 Competences - Level 4 Can explain the key drivers of the economy and the role of the financial intermediation process Can identify a broad range of financial products and services offered by own/other financial organisations Can explain types costumer segmentation of clients, their life circles and resultant financial needs: Can explain the FS business processes, practices and the related regulatory, legal and corporate governance requirements Can identify fundamental risks, risk management principles and processes and explain his/her position within the process Can generate and communicate solutions compliant with risk profile of products and services established by the organisation and the legal and regulatory requirements binding for the organisation Can perform a comprehensive needs analysis of retail and SME clients and translate those into adequate banking products and services Takes responsibility for being compliant and effective within the boundaries of his/her job Demonstrates autonomy in applying relevant financial markets information to his/her own specific activity Takes responsibility, within regulatory requirements, to meet retail and SME clients’ financial needs, without direct supervision Shows ability to capture problems and inefficiencies in his/her work environment and can come up with a solution

FIRST EQF Translator (draft) Knowledge – Level 5 Skills – Level 5 Competences – Level 5 Can illustrate explain how the financial intermediation process operates within the economy, using professional terminology Can clearly explain a broad range of banking products and services for retail and corporate clients and relate them to their needs, using professional terminology Can provide a professional explanation of FS business processes and best practices and their relevance to his/er role Can identify and illustrate laws, regulations and procedures relevant to his/her role Can clearly explain risks and risk management techniques relevant to a given professional role, using professional terminology Knows recognises situation supporting information and advice Can advise clients on best solutions to their financial needs, based on a wide range of financial products and financial structures Can develop new, creative propositions for clients and the organisation which respect the agreed boundaries of risk Can analyse complex sets of indicators and interpret scenario that effect his/her propositions for the organisation and the clients Can identify, critically analyse and recommend how to act in accordance with legal principles and regulatory requirements. Can effectively seek and obtain external information and advice, when needed Takes initiative, within regulatory framework, to meet clients’ most complex financial needs, without direct supervision Takes initiative and responsibility for being on track with changing macro and micro environment Is committed to deliver the agreed risk/return ratio in the organisation Encourages ethical behaviour among his/her team

FIRST EQF Translator (draft) Knowledge - Level 6 Skills – Level 6 Competences – Level 6 Can professionally explain in depht how the economy, how the economy, the financial sector and a financial institution operates, from a business perspective Can professionally explain advanced, integrated issues related the legal and regulatory environment, risk management and micro economic factors that affect business activities and processes Can recognize the links between local business environment to international markets and global economy Demonstrates mastery and innovation required to develop new formats for solutions to clients’ complex financial needs or to develop procedures, tools and systems that help the organisation come up with good solutions for the client Is able to anticipate upcoming changes to regulatory environment. so that adequate solutions, sometimes innovative, are ready when needed Can design innovative solutions to come up with products and services that optimise the risk/return ratio for the organisation Takes responsibility and initiative to cope with complex, unpredictable regulatory change Takes initiative to propose improvements in risk/return structures for products, services and operations Can manage others to be compliant and act ethically

Towards National Qualifications Frameworks EQF: Reference Framework for all National Qualifications Systems: EU Countries are now developing NQFs in response to the EQF

The role of national Authorities in applying the EQF Commitments to link national qualifications to EQF Long term reform process Clear link between NQF and EQF levels National Framework of Qualification Learning outcomes based qualifications Transparency of procedures Self certification

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