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

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. Strategically – 3 critical questions Strong strategy link – each treasury unique, but happens in all businesses of all sizes Value - CFO – accounting perspective, Treasurer – cash perspective - complements The Association of Corporate Treasurers (ACT) sets the benchmark for international treasury excellence and is the voice of corporate treasury    The ACT leads the treasury profession through its internationally recognised suite of treasury qualifications, defines standards, promotes best practice and supports continuing professional development. 13/04/2017

Role and profile of treasurers 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. Operationally - The role of a treasurer can be broad or quite narrow - Indeed the person executing the role may have another title as treasury might be only part of what they do! The ACT breaks treasury down into 5 core elements… Profile of treasury profession raised by current crisis Companies challenged to ensure that they can access funds / protect deposits - many well placed because of efforts of treasurers 13/04/2017

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. Some key data Not for profit organisation established in 1979 First exams 1985 Membership – Individual by examination or Corporate Established suite of qualifications Activities Global standard in treasury education and qualification Policy and technical Events, training and publishing. 13/04/2017

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 13/04/2017

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. 30 national treasury associations (NTAs) around the world 20 in Europe – members of EACT*. Total Membership c50,000 AFP – USA / ACT – UK membership c25,000 50% in 2 largest NTAs NTAs where qualifications requirement for membership AFP & ACT So 28 NTAs don’t require members to pass formal qualifications Mandatory CPD AFP only ACT reviewing requirements 2011 13/04/2017

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 13/04/2017 7 7

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? 13/04/2017

Standard route to ACT qualifications and membership 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 standard Associate 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 CertCFF Corporate Finance & Funding CertFMM Financial Maths & Modelling CertICM Cash Management CertRM Risk Management Specialist skills ACT Faculty Member AMCT Stage 2 AMCT entry point for qualified accountants from IFAC member bodies and those with other relevant qualifications Compulsory for AMCT or can be taken as individual certificates Broad practical understanding of treasury ACT Faculty Member 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 Qualified accountants are exempt from AMCT stage 1 Exemptions available with other relevant qualifications AMCT Stage 1 Can be taken as part of AMCT or as individual certificate Certificate in Financial Fundamentals for Business – CertFin 13/04/2017

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

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 13/04/2017

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