Outline of ACIIA® and CIIA® - Certified International Investment Analyst- February 2005

ACIIA ® Association of Certified International Investment Analysts1 Challenges of Globalisation  Globalisation introduces: -interdependencies -complexity -volatility Implications for  Finance Industry: -knowledge based -adding value -reducing risk  Investment Analysts: -markets/ customers -global knowledge -local expertise

ACIIA ® Association of Certified International Investment Analysts2 Global Skills Local Knowledge Culture Language

ACIIA ® Association of Certified International Investment Analysts3  Knowledge  Ethics  Language & Culture - ACIIA principles of ethical conduct now open to the public for comments - compliance with national legislation - compliance with ICIA code of ethics - CKB ® ( Common Knowledge Base) - specific local content - local legislation and regulation - It’s a must ! - customer oriented - ensuring labour efficiency

ACIIA ® Association of Certified International Investment Analysts4 What is the ACIIA ® ? Non-profit organization Established in June 2000, based in Switzerland Awards an internationally recognised qualification for financial market experts: the CIIA ®

ACIIA ® Association of Certified International Investment Analysts5 ACIIA ® ’s Role To establish /organise and supervise the professional examinations of the CIIA ® To award the CIIA ® qualification To offer a truly global qualification for investment professionals To support the independence of national societies

ACIIA ® Association of Certified International Investment Analysts6 ACIIA ® ’s Objectives To create a forum for the interchange of ideas and information in the finance and investment field To assist a world-wide network of capital market experts To promote the interests of the investment community To promote ethical behaviour in the industry

ACIIA ® Association of Certified International Investment Analysts7 ACIIA ® ’s Background Globalization of investment markets and the rapidly changing face of the global economy  caused the world’s key financial institutions to integrate their operations  demands an internationally recognised, high level qualification.

ACIIA ® Association of Certified International Investment Analysts8 ACIIA ® ’s Background CIIA ® s have the skills the flexibility the ethical behavior to work in any international finance center.

ACIIA ® Association of Certified International Investment Analysts9 ACIIA ® ’s Philosophy A world-wide democratic co-operation of national societies as competent partners. Respects sovereignty and responsibility of national societies Respects individual cultures and languages

ACIIA ® Association of Certified International Investment Analysts10 ACIIA ® ’s Philosophy Recognises that many countries already have excellent national qualification programs Draws on this existing pool of expertise

ACIIA ® Association of Certified International Investment Analysts11 ACIIA ® ’s Philosophy Extend, not replace, the existing national programs, with a global qualification that is recognised world-wide. CIIA ® holders remain independent as members of their national society. Ethics are monitored by the national society.

ACIIA ® Association of Certified International Investment Analysts12 ACIIA ® Organizational Structure General Meeting IEC- International Examination Committee ® CIE-Center for International Examinations Council ＊ PMC – Promotion and Marketing Committee ＊ Task Force for ACIIA Code of Ethics

ACIIA ® Association of Certified International Investment Analysts13 Council Members 1. Mr. Kiyoto Hagiwara, Chairman (SAAJ Japan) 2. Mr. Jean-Francois Balmary, Deputy Chairman (SFAF France) 3. Mr. Gary Cheung (ASAF Asia / HKSI Hong Kong) 4. Dr. Rene Willemsen (EFFAS Europe) 5. Mr. Ronaldo Nogueira (APIMEC Brazil) 6. Dr. Lin Yixiang (SAC/SAAC China) 7. Mr. Fritz H Rau (DVFA Germany) 8. Mr. Sanjay Ramchandani (CPMR/ICFAI India) 9. Mr. Giampaolo Trasi (AIAF Italy) 10.Mr. Gonzalo Milans del Bosch (IEAF Spain) 11.Dr. Jean-Claude Dufournet (SFAA Switzerland)

ACIIA ® Association of Certified International Investment Analysts14 Membership Categories Regular Members - Federation Members - Contracting Members - Funding Members Associate Members Supporting Members

ACIIA ® Association of Certified International Investment Analysts15 Membership Categories Federation Members (2+1) - ASAF - EFFAS - APIMEC Contracting Members (13) Austria, Belgium, France, Germany, Hong Kong, India, Italy, Japan, Luxembourg, Netherlands, Russia, Spain, Switzerland

ACIIA ® Association of Certified International Investment Analysts16 Membership Categories Funding Members (7) China, France, Germany, Italy, Japan, Spain, Switzerland Associate Members (8) Hungary, Iran, Korea, Morocco, Poland, Sweden, Thailand, Ukraine Supporting Members (0)

ACIIA ® Association of Certified International Investment Analysts17 Membership Rights / Obligations Fed. M. Cont. M. Fund. M. Asso. M. Supp. M. -Voting Rights ○ ○ ○ × × (General Meetings) -To attend General Meetings ○ ○ ○ △ △ -To be Council Members ○ ○ ○ × × -To have CIIA candidates × ○ × ○ ○ (National programs have to be accredited by IEC) -To pay entrance fee/ ○ ○ ○ ○ △ annual fee to ACIIA -To have to commit × ○ × × × number of exam candidates -To extend a loan to ACIIA × × ○ × ×

ACIIA ® Association of Certified International Investment Analysts18 Membership Fees to ACIIA Entrance fee and annual membership fee are paid to the ACIIA by ACIIA Members. ACIIA Members will probably charge CIIA candidates (i) a registration fee, and (ii) an examination fee for one or two exam paper(s), taking into account annual membership fees payable to the ACIIA, management and operational costs, plus a certain margin profit. In any case, the level of fees for CIIA candidates will be up to each member society.

ACIIA ® Association of Certified International Investment Analysts19 Entrance Fees to ACIIA Federation Members CHF7,250 Contracting Members CHF7,250 Funding Members CHF7,250 Associate Members CHF1,160 Supporting Members Not admitted

ACIIA ® Association of Certified International Investment Analysts20 Annual Membership Fees to ACIIA (1) Refer to the ACIIA “Terms and Conditions of Fee Commitment.” Federation / Funding Members : CHF9,790 p.a. Contracting Members: (i) As long as the cumulative number of exam units is no more than 500, the annual fee will be (i)CHF 9,945 (CHF 195 x 51 exam papers if the committed number is the minimum ) or (ii) CHF195 x number of exam units for the year, whichever is larger.

ACIIA ® Association of Certified International Investment Analysts21 Annual Membership Fees to ACIIA (2) If the cumulative number of exam units is more than 500, the annual fees will be calculated, in principle, based upon the following: [P] x [rn] [P] : average price per unit This coverage price will be calculated in accordance with the “fee per unit” table [rn] : number of units (exam papers) for the nth payment of annual membership fees. * Refer to the ACIIA “Terms and Conditions of Fee Commitment.”

ACIIA ® Association of Certified International Investment Analysts22 Total committed/actual number of units for five years (Committed/actual number of exam papers for five years) Fee per unit The 1 st level 0-500CHF195 The 2 nd level 501-1,000CHF175 The 3 rd level ,500CHF150 The 4 th level 1,501-3,000CHF130 The 5 th level 3,001-5,000CHF110 The 6 th level 5,001- CHF90 Annual Membership Fee Fee Per Unit Table Number of exam papers Annual fee The 1 st year: 300 CHF 58,500 (= x 300) The 2 nd year: 500 CHF 93,750 (= x 500) The 3 rd year: 600 CHF 105,000 (= x 600)* * Average price per unit: (195 x x x 400) ÷1,400 = Annual fee for the 3 rd year: [P] x [rn] = x 600 = 105,000

ACIIA ® Association of Certified International Investment Analysts23 Annual Membership Fees to ACIIA Associate Members: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 CHF435 CHF870 CHF1,740 CHF3,480 CHF6,960 CHF9,790 Supporting Members: CHF435 (A harbor will give Associate Members temporary refuge, and once the storm passes they can return to their original membership status.)

ACIIA ® Association of Certified International Investment Analysts24 Global Reach 23 Member Societies to date some 30,000 investment professionals aiming at 3, ,000 graduates annually

ACIIA ® Association of Certified International Investment Analysts25 Candidate Numbers Since March 2002 more than 2,500 candidates have achieved the designation worldwide Currently more than 3,300 CIIA ® candidates world-wide

ACIIA ® Association of Certified International Investment Analysts26 Strengths of CIIA ® designation Participating societies are able to retain their independence The CIIA ® is –practical and relevant –globally oriented Exams can be taken in a number of languages The overall qualification also comprises a “local specific” component

ACIIA ® Association of Certified International Investment Analysts27 CIIA ® Examination Structure The designation combines a topic-based and levels-based approach, with emphasis on Corporate Finance and Derivatives There are two levels of examinations covering all topic areas –Foundation level + National specific –Final level

ACIIA ® Association of Certified International Investment Analysts28 CIIA ® Examination Structure Examination paper structure: Common Exam hoursNo. of papers –Final 62 –Foundation National specific nb: the national specific examination may, if necessary, be more than 3 hours

ACIIA ® Association of Certified International Investment Analysts29 CIIA ® Examination Structure Topic areas Equity Valuation and Analysis Fixed Income Valuation and Analysis Derivative Valuation and Analysis Economics Corporate Finance Financial Accounting and Financial Statement Analysis Portfolio Management

ACIIA ® Association of Certified International Investment Analysts30 Structure of CIIA ® Topic combinations Final Level –Examination I (180min): Equity, Financial Statement, Economics, Corporate Finance –Examination II (180min): Fixed Income, Derivatives, Portfolio Management

ACIIA ® Association of Certified International Investment Analysts31 CIIA ® Examination Structure Foundation Level –Examination I (190min): Equity, Financial Statements, Corporate Finance –Examination II (160min): Fixed Income, Economics –Examination III (190 min): Derivatives, Portfolio Management

ACIIA ® Association of Certified International Investment Analysts32 CIIA ® Examination Structure National Specific –Regulation, Ethics, Accounting, Market Structures and Instruments

ACIIA ® Association of Certified International Investment Analysts33 Routes to the CIIA ® Qualification Route A: –Foundation + Final + National specific Route B: –Accredited programme + Final Route C (until September 09): –Experienced qualified candidate + Final (Accredited member societies only)

ACIIA ® Association of Certified International Investment Analysts34 Routes to the CIIA ® Qualification The IEC (International Examination Committee) evaluate national societies’ programs for accreditation by the ACIIA ® Note: Fifteen member society programmes have been accredited to date. Societies are increasingly integrating their programmes more fully within the CIIA® scheme and adopting Route A.

ACIIA ® Association of Certified International Investment Analysts35 International Examination Committee (IEC) Assures the high quality and academic credibility of the CIIA ® is independent, objective, and dedicated to the CIIA ® qualification consists of experts from four continents: –international experienced university professors –expert practitioners with academic activities.

ACIIA ® Association of Certified International Investment Analysts36 International Examination Committee (IEC) Is responsible for evaluating if qualification programs of national societies are equivalent to the foundation level of the CIIA ® Is responsible for the preparation of the CIIA ® examination papers Supervises the CIIA ® examination

ACIIA ® Association of Certified International Investment Analysts37 IEC Members Prof. Mike Theobald, Chairman, UK Dr. Ronald Copley, USA Prof. Darell Duffie, USA Dr. Jean-Claude Dufournet, Switzerland Prof. Takao Kobayashi, Japan Prof. Otto Loistl, Germany Prof. Juan A. Palacios, Spain Prof. Miguel Angelo Arab, Brazil

ACIIA ® Association of Certified International Investment Analysts38 How are the CIIA ® examination papers prepared? The CIIA ® is a truly international examination: examination questions come from around the world. Questions are drafted by different national societies The IEC prepares a definitive version of the examination papers

ACIIA ® Association of Certified International Investment Analysts39 How are the examinations corrected? The first correction is made by the national societies and marginal papers are identified. The marginal papers are then re-graded by the national societies. Remaining marginal papers are graded centrally within ACIIA ® and the final grading is checked by the IEC.

ACIIA ® Association of Certified International Investment Analysts40 Organisational Aspects Each society is responsible for: the organisation of the CIIA ® examination the preparation of its candidates the preparation of the educational material (manuals, handouts) for its candidates

ACIIA ® Association of Certified International Investment Analysts41 CIIA ® Candidate Preparation National Societies are responsible for providing good training courses and materials for CIIA ® candidates. In Europe, manuals consistent with the CIIA ® syllabus have been developed by the Swiss Centre and by a group of the German, French, Spanish and Belgian Societies. Integration of the materials into one set is under way.

ACIIA ® Association of Certified International Investment Analysts42 Comparison CIIA ® vs. CFA Resume The readings are by and large comparable. The CFA-syllabus lacks a national-specific topic section over and above the US-market. Legal requirements, accounting rules and investment regulation, the syllabus and the readings are all US-oriented. The CIIA ® – program addresses both issues: the legal local/regional rules and regulations, and the US- regulations.

ACIIA ® Association of Certified International Investment Analysts43 Resume CIIA ® Advanced international, professional qualification for capital market experts International acceptance Global, regional and local education Eleven globally recognised languages Complements existing national qualification programs Respects individual cultures, languages and legal orders Assures independence of CIIA ® holders and National Societies Ethical standards are controlled by the local member society