SII Certificates

Units

• Unit 1 - FSA Financial Regulation
• Unit 6 - Principles of Financial Regulation
• Unit 2 - Securities
• Unit 3 - Derivatives
• Unit 4 - Securities and Financial Derivatives
• Unit 5 - Investment Management
• Unit 7 - Financial Derivatives
• Unit 8 - Investment and Risk (NEW)
  
• Certificate in Corporate Finance Full
• Corporate Finance Regulation
• Corporate Finance Technical Foundations
  
  
  

• Unit 1 - FSA Financial Regulation
  This unit considers the regulatory environment in the UK and the background that led to the creation of the Financial Services Authority (FSA) as the sole regulator. The role of the FSA is considered as well as the content of the FSA Handbook. The material also looks at the detail of The Financial Services and Markets Act 2000 (FSMA), defining regulated activities and specified investments, the authorisation process for firms and the approval process for individuals performing controlled functions.

  Thereafter, we consider other sources of regulation including measures designed to prevent financial crime as well as considering a number of European Union (EU) Directives, with special emphasis on the Markets in Financial Instruments Directive (MIFID).

  The next part of the unit is extremely important since it considers the FSA’s Conduct of Business Rules (COBS) and Client Assets Rules. MiFID has had a dramatic impact on these rules and this underlines the fact that regulation is increasingly being determined at the European level.
  

• Unit 6 – Principles of Financial Regulation
  This unit considers the regulatory environment in the UK and the background that led to the creation of the Financial Services Authority (FSA) as the sole regulator. The role of the FSA is considered as well as the content of the FSA Handbook. The material also looks at the detail of The Financial Services and Markets Act 2000 (FSMA), defining regulated activities and specified investments, the authorisation process for firms and the approval process for individuals performing controlled functions.

  Thereafter, we consider other sources of regulation including measures designed to prevent financial crime as well as considering a number of European Union (EU) Directives, with special emphasis on the Markets in Financial Instruments Directive (MIFID).

  The next part of the unit is extremely important since it considers the FSA’s Conduct of Business Rules (COBS) and Client Assets Rules. MiFID has had a dramatic impact on these rules and this underlines the fact that regulation is increasingly being determined at the European level.
  

• Unit 2 - Securities
  This unit considers the different securities traded in the financial markets including shares, warrants, bonds (with special emphasis on UK Government bonds) and currencies.

  We then consider how securities are brought to market and discuss the role of stock exchanges. Initial Public Offerings as well as further issuances (including rights issues and bonus issues) are described. The rules around stakebuilding are also examined. The trading of securities is then described before we examine how securities trades are cleared and settled at securities depositories.

  Attention is then given to regulations across a number of important markets with special emphasis on the rules relating to disclosure of interests in shares. Accounting is then addressed with an examination of the main financial statements that companies must produce before we move on to the analysis of accounts. Finally we examine investment management by considering the risk and reward associated with investing in various asset classes.
  

• Unit 3 - Derivatives
  We begin with an introduction to futures and options and discuss much of the terminology that it is important to understand. We also consider the cash products that underlie derivative contracts. We then move on to discuss derivative exchanges and consider the trading platforms and clearing mechanisms used.

  We analyse how futures and options are priced and examine a number of arbitrage trades. With particular emphasis on Euronext.liffe, we discuss trade reporting requirements, order types and the need for trade registration.

  Over the counter (OTC) derivatives offer much more flexibility than exchange traded derivatives. We discuss a wide range of OTC products including forwards, swaps, structured products and options.

  We then examine the principles of clearing, margining and settlement, with the emphasis on LCH.Clearnet. We will also consider how market participants employ a variety of options strategies when hedging or speculating. Finally, we look at how regulations are applied in the main derivatives markets.
  

• Unit 4 – Securities and Financial Derivatives
  The Securities component of this unit considers the different securities traded in the financial markets including shares, warrants, bonds and currencies. We then consider how securities are brought to market and discuss the role of stock exchanges. The trading of securities is then described before we consider how securities trades are cleared and settled at securities depositories.

  Regulations across a number of important markets are considered, with special emphasis on the rules relating to disclosure of interests in shares. Accounting is then addressed looking at the main financial statements that companies must produce before we move on to the analysis of accounts. We also consider risk and reward associated with investing in various asset classes.

  The financial derivatives component begins with an introduction to futures and options. We consider derivative exchanges and the trading platforms and clearing mechanisms used. We analyse how futures and options are priced and examine a number of arbitrage trades, as well as trade reporting requirements, order types and the need for trade registration on Euronext.liffe.

  Over the counter (OTC) derivatives offer much more flexibility than exchange traded derivatives. We discuss a wide range of OTC products including forwards, swaps, structured products and options.

  We then examine the principles of clearing, margining and settlement, with the emphasis on LCH.Clearnet. We will also consider how market participants employ a variety of options strategies when hedging or speculating. Finally, we look at how regulations are applied in the main derivatives markets.
  

• Unit 5 – Investment Management
  We will cover the fundamental approaches and methods used within the investment management industry. The course gives a solid grounding in financial maths, covering statistical techniques such as calculating standard deviation and variance, as well as approaches for discounting cash flows to obtain present values. The basic principles of financial maths are carried over into the asset valuation section as the characteristics of bonds, equities and derivatives are covered, alongside various valuation methodologies.

  In order to understand businesses the fundamentals of accounting are covered along with an introduction to financial statement analysis. The use of resources within the economy is also examined with sections on both micro and macro economics. The jigsaw is completed with a look at portfolio management and techniques for constructing portfolios, as well as methods for evaluating and measuring investment performance.
  

• Unit 7 - Financial Derivatives
  This unit begins with an introduction to futures and options. We consider derivative exchanges and the trading platforms and clearing mechanisms used. We analyse how futures and options are priced and examine a number of arbitrage trades, as well as trade reporting requirements, order types and the need for trade registration on Euronext.liffe.

  Over the counter (OTC) derivatives offer much more flexibility than exchange traded derivatives. We discuss a wide range of OTC products including forwards, swaps, structured products and options.

  We then examine the principles of clearing, margining and settlement, with the emphasis on LCH.Clearnet. We will also consider how market participants employ a variety of options strategies when hedging or speculating. Finally, we look at how regulations are applied in the main derivatives markets.
  

• Unit 8 - Investment & Risk (NEW)
  This unit is aimed at employees who advise and/or deal on behalf of retail clients.

  We start by discussing the macro-economic factors that impact on people’s investment needs. We then discuss a wide range of asset classes. Whilst many of these (such as equity and bonds) are covered in the Securities unit, students require an understanding of National Savings and Investments products, collective investment schemes, tax wrappers such as ISA's, property and the products offered by life assurance companies.

  Socially responsible investment is considered briefly before we then discuss aspects of investment risk and reward. This leads to an examination of the tax regime in the UK with attention given to income tax, capital gains tax, inheritance tax and corporation tax. The unit is completed by discussing the process of providing financial advice and techniques used when managing and advising on investments.
  

• Certificate in Corporate Finance Full
  The Certificate in Corporate Finance is the first part of the Corporate Finance Qualification. This tests a candidate’s understanding of basic corporate finance concepts and the regulatory environment. The full certificate includes both the regulation and technical foundations units, the contents of which are shown below. These units can be taken as a full course or booked individually.
  

• Corporate Finance Regulation
  

  We consider the regulatory environment in the UK and the Financial Services Authority (FSA). The role of the FSA is considered as well as the content of the FSA Handbook. The material also looks at the detail of The Financial Services and Markets Act 2000 (FSMA), defining regulated activities and specified investments, the authorisation process for firms and the approval process for individuals.

  We also consider money laundering and insider dealing within financial crime, the City Code on Takeover and Mergers, the Companies Act and finally the equity capital markets, including the UKLA Listing rules.
  

• Corporate Finance Technical Foundations
  This unit requires a good knowledge of the mathematics behind risk assessment and valuation methods. We consider various quantitative methods, as well some detailed accounting analysis.
  
  We also look at how a business can raise finance and the cost of capital associated with their capital structure. We then consider the four methods used to value a business. Finally, we look at the motivations behind acquisitions and disposals, and finish by discussing the various documentation used in corporate finance.