1. Levelling the Playing Field in International Trade Finance David Morrish dmorrish@ifslearning.ac.uk www.ifslearning.ac.uk

2. Levelling the Playing Field Not too level… …needs a bit of work! Very Level!

3. © ifs University College 2013 As you will have seen from the selection of feedback to our 2014 survey as you entered the room respondents are from all over the world. ifs University College International Trade Finance Qualifications are studied in over 80 countries International Trade Qualifications Survey 2014 ALGERIACZECH REPUBLICJORDANNIGERIASUDAN ARGENTINADENMARKKAZAKHSTANOMANSWEDEN AUSTRALIAECUADORKENYAPAKISTANSWITZERLAND AZERBAIJANEGYPTKUWAITPOLANDSYRIA BAHRAINESTONIALATVIAPORTUGALTAIWAN BANGLADESHFRANCELEBANONQATARTHAILAND BELARUSGERMANYLIBYAREPUBLIC OF IRELANDTUNISIA BELGIUMGHANAMALAWIROMANIATURKEY BOTSWANAHONG KONGMALAYSIARUSSIAU A E BRAZILHUNGARYMALTASAUDI ARABIAUGANDA BULGARIAINDIAMAURITANIASENEGALUK CAMEROONINDONESIAMAURITIUSSINGAPOREUKRAINE CANADAIRAQMONGOLIASOUTH AFRICA USA CHINAITALYMOROCCOSOUTH KOREAVIETNAM CROATIAIVORY COASTNETHERLANDSSPAINZAMBIA CYPRUSJAPANNETHERLANDS ANTILLESSRI LANKAZIMBABWE NEW ZEALAND

4. © ifs University College 2013 Certificate in International Trade and Finance CITF® - Introduction First offered in 2009 the Certificate in International Trade and Finance was developed as a qualification for those either new to trade finance or wanting to develop their knowledge further.  Typical profile of candidates:  Relationship Managers with internationally active clients in their portfolios  Trade services operations personnel wish to broaden their knowledge (90% of respondents from our 2014 survey work in Financial Institutions)  Export sales personnel in large corporates (10% of respondents from our 2014 survey work for exporters/importers or for freight forwarders)

5. © ifs University College 2013 Certificate in International Trade and Finance CITF® - 2014 Survey results CITF® has proved popular in the past with successful candidates giving a very positive response to the 2014 Survey:  66% stated it had helped them gain their current role  74% used their knowledge most days, if not everyday, in their day-to-day job  88% believed it had enhanced their career prospects  88% felt that their achieving CITF® was beneficial to their organisation Despite these very positive responses however, our own research and direct feedback from a number of sources suggested that the pace of change in international trade was such that CITF® needed to be refreshed

6. © ifs University College 2013 Certificate in International Trade and Finance CITF® - Development of new Syllabus  Working Group convened in early 2013  Input sought from a variety of sources  New Chief Examiner appointed  New Test Committee appointed  Revised Syllabus agreed  Revised Text Book commissioned The ‘Guide to International Trade and Finance’  ICC endorses CITF®

7. © ifs University College 2013 Certificate in International Trade and Finance CITF® - Development of new Syllabus High level Objectives of the revised CITF® are for successful candidates to be able to:  advise clients appropriately on the basics of international trade and finance;  understand the processes involved in each type of international trade product;  understand the risks involved in international trade and how to mitigate them;  understand current banking practices and conventions applicable to international trade;  understand the roles and responsibilities of all parties involved in international trade transactions.

8. © ifs University College 2013 The significance of international trade and the role of the International Chamber of Commerce (ICC):  Principles of international trade  Challenges of international trade  Role of the ICC  Regional and global initiatives  Risk mitigation Certificate in International Trade and Finance CITF® - Content

9. © ifs University College 2013 Certificate in International Trade and Finance CITF® - Content The role and responsibilities of parties involved in international trade:  Banks  Buyers  Sellers  Traders and intermediaries  Transport companies  Chambers of commerce  Customs  Insurance companies  Factoring companies  Forfaiting companies

10. © ifs University College 2013 The relationships between the parties involved in international trade and the trade finance environment and external impacts;  ICC – international model contracts  International commercial terms (Incoterms®)  Exchange controls  Regulatory issues  Sanctions  Money laundering  Fraud Role and practice of dispute settlement within international trade including:  Dispute handling, arbitration and resolution  ICC arbitration  Documentary Instruments Dispute Resolution Expertise (DOCDEX)  Litigation Certificate in International Trade and Finance CITF® - Content

11. © ifs University College 2013 Methods of settlement available and the rules that govern them:  Open account  Collections and URC  Letters of credit and UCP  Introduction to ISBP  Guarantees and URDG  Standbys and ISP98  Bank Payment Obligations and URBPO Certificate in International Trade and Finance CITF® - Content

12. © ifs University College 2013 Certificate in International Trade and Finance CITF® - Content Methods available for financing and servicing international trade:  Short, medium and long-term finance  Supply chain finance  Export Credit Agencies  Credit and political risk mitigation  Forex risk and hedging  Forfaiting and URF  Islamic trade financing

13. © ifs University College 2013 Purpose and key features of the different types of documents used in international trade:  Financial documents  Bill of Exchange  Promissory Note  Commercial documents  Invoices (commercial, customs, tax, consular, provisional, pro-forma)  Insurance document  Certificate of origin  Inspection certificate  Packing list  Weight list  Analysis, Health, Phytosanitary, Quantity, Quality,  Beneficiary Certificates Certificate in International Trade and Finance CITF® - Content

14. © ifs University College 2013 Certificate in International Trade and Finance CITF® - Content  Transport documents  Multimodal or combined transport  Bill of lading  Non-negotiable sea waybill  Charter party bill of lading  Air transport  Road, rail or inland waterway

15. © ifs University College 2013 International Trade Finance Qualifications Certificate in International Trade and Finance (CITF®)  An introduction to all aspects of trade finance  Registrations opened on 1 st April for October exam Certificate for Documentary Credit Specialists (CDCS®)  A practical examination for documentary credit professionals  Record number of candidates for the April examination Certificate for Specialists in Demand Guarantees (CSDG)  A new examination for guarantee and standby credit practitioners  Number of candidates far exceeds expectations for June exam All three qualifications have been developed in partnership with the ICC and each carries the ICC endorsement. Whether newly appointed or experienced in their specialist field, Trade Finance professionals now have a suite of qualifications to develop their expertise and enhance their career prospects.

16. © ifs University College 2013 Conclusion  ifs University College in partnership with the ICC has developed and enhanced three leading international trade finance qualifications  In studying for these qualifications Trade Finance professionals may develop their expertise and in many areas fill the gaps in their knowledge so that they may have a more complete understanding and appreciation of their subject  Lack of knowledge and understanding is a barrier and can create uneven tensions between the various parties engaged in international trade  Professional qualifications play their part in breaking down those barriers and help level the playing field.

17. © ifs University College 2013 Levelling the Playing Field Produces Winners!

18. Thank you David Morrish dmorrish@ifslearning.ac.uk www.ifslearning.ac.uk