IBF Cover copy 8 - The Institute of Banking and Finance

Transcription

The Ins ti tute of Banki ng and Fi nanc e
An nu a l Rep or t 2006
The Institute of Banking and Finance
contents
2
About Us
3
Mission Statement
4
Chairman’s Statement
6
Council Members
9
Calendar of Key Events
Highlights of the Year
11
Launch of the Full Set of Financial Industry
Competency Standards 14
Launch of Financial Sector Website
“FinanceConnectSingapore”
15
Financial Talent Education and Development Task Force
Organisational Initiatives and Affairs
17
Raising the Bar for Financial Practitioners
21
Enhancing the Job Readiness of Graduates
21
Outreach to Talent Pools
22
Continuing Education and Training
23
Capital Markets and Financial Advisory Services
(CMFAS) Examination
24
Regional Partnership and Outreach
25
Membership and Partnership
27
Organisational Improvements - Information Technology
Report of the Council Members and Financial Statements
29
Report of the Council Members
31
Independent Auditors’ Report to the Members of The Institute of Banking and Finance
33
Statement of Fund Balances, Assets and Liabilities
34
Statement of Income and Expenditure
35
Statement of Changes in Members’ Funds
36
Cash Flow Statement
37
Notes to Accounts
50
Statement of Council Members
51
Notice of Annual General Meeting
Proxy Form
The Institute of Banking and Finance (IBF) was established on
21st November 1974 as a non-profit professional institution.
When it was set up in 1974, IBF served a critical function as
a centre dedicated to the training of the Singapore financial
sector workforce.
As financial services developed over the years, IBF expanded
its role to include the administration of local and overseas
examinations. It also broadened its charter to include nonbank sectors in the financial industry. More than 180,000
participants have benefited from the over 4,000 courses offered
by the Institute through the years.
In the year 2000, IBF conducted a strategic review of its
direction and strategy. The review showed that the training
activities of the Institute overlapped with the training activities
of other institutions within the private sector. IBF consequently
repositioned itself in 2001 to focus on a broader and more
strategic role of enhancing the financial training infrastructure
in Singapore. The Institute gradually relinquished its role as
a training provider, and established “f-NExT”, a Financial
Network for Excellence in Training. Apart from serving as a
platform to develop a more robust, forward-looking training
infrastructure in financial services, “f-NExT” also promotes
more active industry involvement and collaboration. IBF also
established a standard-setting committee known as the Financial
Industry Competency Standards Committee in 2003, with the
objective of raising the professional standard of the financial
sector workforce
in Singapore.
about us
In its current
role, the Institute
administers part of
the Capital Markets and Financial Advisory Services (CMFAS)
examination series on behalf of the Monetary Authority of
Singapore and facilitates the provision of the Continuing
Education Programmes for Trading Representatives (CEPTR)
courses. The Institute is also the national accreditation and
certification agency for financial industry competency under the
Financial Industry Competency Standards (FICS) framework.
Annual Report 2006
mission
objectives
To develop a responsive, forward-looking financial sector training
infrastructure that positions Singapore as a world-class financial
centre and financial training hub.
To promote continuous learning and
training among financial institutions.
To achieve the highest standards of
financial workforce competence in line
with world class standards.
To establish the benchmark for the
provision of top quality financial
training and education.
To attract and develop a pool of credible, high quality and internationally
recognised financial training providers.
chairman’s
statement
Mr Heng Swee Keat
Chairman of IBF | Managing Director, Monetary Authority of Singapore
In 2006, IBF made steady headway in implementing
the Financial Industry Competency Standards (FICS).
The full set of standards was released on 12 June, and in
July, Standard Chartered Bank became the first foreign
full bank to achieve FICS accreditation, for its Financial
Markets: Trading assessment programme. In November,
UBS AG became the first financial institution to achieve
FICS-accreditation for all job roles in a job family
(Relationship Management: High Net Worth). UBS has
since opened its Wealth Management Campus - Asia Pacific,
a validation of Singapore as a choice location for financial
sector research, education and training. I was delighted to
learn that the availability of the FICS framework assisted
UBS in developing the full suite of programmes for its
wealth management staff, up to the highest levels.
IBF has also intensified its efforts in facilitating
talent attraction into the financial sector. A website,
www.financeconnectsingapore.com, was launched to
highlight the vibrancy and dynamism of the Singapore
financial sector, and the rich opportunities for career and
personal advancement. At the same time, the website
Annual Report 2006
showcases to an international audience
Singapore’s excellent work, live and play
proposition. The website has attracted healthy
traffic, and IBF will continue to enhance it
further.
IBF led a tri-partite task force, called the
Financial Talent Education and Development
Task Force, to look into better alignment of pre-
employment training to the needs of financial
sector employers. The Task Force brought
together institutions of higher learning (IHLs)
and financial institutions, and the discussions
have culminated in several important
recommendations to ensure that our graduates
will be equipped with skills and attitudes
that would make them continue to be highly
sought after by financial sector employers. IBF
will continue to engage IHLs and financial
institutions in the year ahead to see through the
adoption of these recommendations.
In the meantime, to address the immediate skill needs of the
industry, IBF has worked with industry players and financial
training providers to develop intensive Finance Preparatory
Programmes (FPP) targeted at graduating students, to make
them more ready to take on roles in high-growth areas. The
first FPP in risk management was launched by the NUS
Risk Management Institute in December 2006, and a
second FPP in global and investment banking operations
will be introduced in July.
A word of gratitude to the FICS Steering
Committee, ably led by Ms Euleen Goh, is thus
not merely customary. Indeed, the commitment
of the FICS Steering Committee, supported
by the FICS Working Groups, has been
instrumental to our progress, and I am delighted
that they have agreed to renew their term for
another 2 years to provide continued leadership
for the next stage of the FICS journey.
As several of these initiatives are multi-year efforts, 2007
will be filled with exciting and important work for IBF. For
FICS, 5 lead providers will be appointed in 2007 to deliver
the full suite of FICS-accredited training and assessment
programmes. A publicity campaign will be launched to
increase awareness of FICS, and we can look forward to
welcoming a “pioneer” batch of Financial Industry Certified
Professionals as role models for our aspiring young talents.
With this, we would be further embedding and building
on the groundwork for FICS, and we can expect to see a
significant rise in the number of certified practitioners in
the next 2 years.
I would also like to extend my appreciation to
our partners, including the Singapore Workforce
Development Agency and my colleagues at the
Monetary Authority of Singapore, for their close
collaboration with IBF. Finally, I would like to
thank all our members for your support for, and
collaboration with, IBF in the past year. IBF was
established to serve you, and I look forward to
your active participation in our initiatives in the
year ahead.
council
members
(from top, left)
(from bottom, left)
Mr Heng Swee Keat
Mr David Conner
Chairman of IBF
Director & Chief Executive Officer
OCBC Bank
Managing Director
Monetary Authority of Singapore
Mrs Catherine Mullaney Weir
Mr Wee Ee Cheong
Vice Chairman of IBF
Head of ASEAN, Citi Markets & Banking
Citi Country Officer, Singapore
Citibank, N.A.
Chairman of Association of Banks in Singapore
Deputy Chairman & Chief Executive Officer
UOB Limited
Mr Ong Chong Tee
Deputy Managing Director
Research, Monetary Policy & Investments Development & External Relations
Mr Loh Boon Chye
Chairman of Singapore Foreign Exchange Market Committee
Managing Director
Head of Global Markets, Asia
Deutsche Bank
Mr Derek Teo
President of General Insurance Association of Singapore
Mr Jackson Tai
Vice Chairman & Chief Executive Officer DBS Group Holdings & DBS Bank
Annual Report 2006
Executive Vice President
American Home Assurance Company, Singapore
(from top, left)
(from bottom, left)
Mr Seck Wai Kwong
Dr Gary Willmott
Senior Executive Vice President Singapore Exchange Limited
Deputy Chief Executive
Singapore Workforce Development Agency
Ms Euleen Goh Yiu Kiang
Mr Christopher Ho
Chairperson
Financial Industry Competency Standards Steering Committee
Chairman of Singapore Reinsurers’ Association
Chairman
International Enterprise Singapore
Mr George Lee
Chairman of Singapore Investment Banking Association
Executive Vice President
Group Investment Banking OCBC Bank
Mr Lester Gray
Chairman of Investment Management Association of Singapore
Chief Executive Officer Asia Pacific
Schroder Investment Management (S) Ltd
Chairman and Chief Executive Officer
AXA RE Asia Pacific
Ms Karine Kam
Executive Director
Singapore College of Insurance
Mr Lee Kah Chuen
Deputy Director Humanities & Aesthetics Branch
Curriculum Planning and Development Division
Ministry of Education
Council Members who have stepped down during the year
(from top, left)
(27 March 1990 – 27 March 2006)
Mr Ang Swee Tian
Past President
SGX
(8 April 2004 – 9 April 2006)
Ms Ho Peng
Director Curriculum Planning & Development
Ministry of Education
(8 October 2004 – 6 October 2006)
Mr Greg Seow
Executive Chairman
DBS Asset Management
(10 May 2005 – 1 July 2006)
Mr Low Kwok Mun
Chairman
Executive Director, Insurance Supervision
Annual Report 2006
calendar of
key events
12.06.06
IBF holds its 31st Annual General Meeting
IBF releases the complete set of Financial Industry Competency
Standards
15.08.06
IBF convenes meeting of the Financial Talent Education And
Development Task Force
23.10.06
IBF participates in the 11th Biennial Asian & Pacific Association
of Banking Institutes Conference
28.10.06
IBF launches the FinanceConnectSingapore (FCS) website
17.11.06
IBF participates in the ASEAN Banking Council Permanent
Committee on Education Meeting
11.12.06
IBF announces the launch of the first Finance Preparatory
Programme (FPP) in Risk Management with the NUS Risk
Management Institute (RMI)
10
highlights
of the year
Annual Report 2006
highlights
of the year
Financial Industry
Competency Standards
Launch of the full set of Competency Standards
The FICS was launched in September 2005 with the objective of
putting in place a framework and structure that will help to develop
a leading edge financial sector workforce to support Singapore as
an international financial centre and to facilitate lifelong learning
and long-term employability of the financial centre workforce. Standards for 4 job families (Relationship Management-High Net
Worth, Financial Markets-Trading, General Insurance-Claims
Handling and Life Insurance-Claims Handling) were released in
the pilot phase to enable IBF to better monitor the rollout of the
framework, and fine-tune it, where necessary, before the full set of
standards was released.
With an encouraging level of interest among financial institutions
and financial training providers following the launch, IBF released
the Competency Standards for another 48 job families, spanning
the various industry segments of Financial Markets, Corporate
Banking, Corporate Finance, Fund Management, Wealth
Management, General Insurance, Life Insurance, Compliance and
Risk Management, on 12 June 2006 to allow greater access to the
FICS among financial institutions and training providers.
The FICS framework comprises a set of standards as well as curriculum and assessment
guides that relate to the competencies required of financial practitioners for specific job
functions. Individuals who wish to make use of FICS to plan their journey for professional
development can access a high-level version of the standards from the IBF website. The
information includes the broad descriptions of Job Roles, Competency Units, Competency
Elements, as well as Certification Requirements for each Job Family.
Organisations in Singapore who are interested in leveraging on the FICS to develop
training or assessment programmes can apply to IBF for a User Account that will enable
them to download the detailed set of standards. The application for a User Account is
free and there is also no charge for access/downloading of the standards.
11
12
Financial Industry Competency Standards for 52 Job Families
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Annual Report 2006
COMPLIANCE
Compliance - Anti-Money Laundering
Compliance - Consumer
Compliance - Fund Management
Compliance - Insurance
Compliance - Wealth Management
Compliance - Wholesale
CORPORATE BANKING
Cash Management
Credit Analysis & Approval
Credit Control & Administration
Project Financing
Relationship Management - Enterprise Banking
Relationship Management - Wholesale Banking
Sales & Marketing - Transaction Services
Structured Financing Advisory
Trade Finance
Transactions Processing, Control & Support
CORPORATE FINANCE
Origination, Structuring & Advisory - Equities
Sales & Distribution - Primary Markets
FINANCIAL MARKETS
Asset Securitisation
Operations / Deal Processing & Settlements
Debt Origination & Syndication
Product Control
Research
Trading
Treasury Sales
FUND MANAGEMENT
Business Development - Institutional
Business Development - Retail
Central Dealing
Fund Administration
Performance Measurement
Portfolio Management
Product Development
GENERAL INSURANCE
Claims Handling
Underwriting
LIFE INSURANCE
Claims Handling
Underwriting
13
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
RISK MANAGEMENT
Asset Liability Management - Banking
Asset Liability Management - Insurance
Credit Analytics
Credit Risk Management - Consumer Banking
Credit Risk Management - Corporate Banking
Market Risk Analytics
Market Risk Management
Operational Risk Management
SECURITIES & FUTURES
Trading (Dealers, Remisiers) / Stockbroking
PRIVATE EQUITY
Private Equity
WEALTH MANAGEMENT
Investment Advisory
Relationship Management - High Net Worth
Relationship Management - Mass Affluent
Relationship Management - Retail
Trust Administration
Trust & Estate Planning
Mr Heng Swee Keat, Chairman
of IBF, announcing the launch of
the full set of Financial Industry
Competency Standards during the
opening address of the Institute’s
31st Annual General Meeting on
12 June 2006.
Professor Narayan Pant, Professor of Strategy and
Associate Dean of Executive Education, INSEAD,
delivering a speech on “Views on the Changing Role
of HR” at the Institute’s 31st Annual General Meeting.
14
highlights
of the year
FinanceConnectSingapore
The FinanceConnectSingapore (FCS) website was
launched at the JobsCentral Career Fair held at
Suntec City from 28 to 29 October 2006. The guestof-honour, Dr Teo Ho Pin, Mayor of North West
CDC and MP for Bukit Panjang SMC, officiated
the career fair which attracted about 20,000 job
seekers. The website will augment IBF’s current
initiatives to draw fresh talent into the financial
sector, by highlighting the vibrancy and dynamism
of Singapore as a key financial centre, and the work,
live and play proposition Singapore has to offer.
The FCS website reaches out to both local
and foreign talents, and provides comprehensive
information on Singapore’s financial industry,
career opportunities, and training and development
opportunities. To date, the website has shown traffic
growth, registering over 15,000 visits and over
120,000 hits. IBF will continue to review and finetune the contents of the website, in consultation
with the industry and the Monetary Authority of
Singapore.
Annual Report 2006
highlights
of the year
15
Financial Talent Education and
Development Task Force
IBF established a tri-partite Financial Talent Education and
Development (FTED) Task Force in June 2006 to serve as a
platform for the financial industry and institutions of higher
learning (IHLs) in Singapore to address the skill needs of
the financial sector. The FTED Task Force, chaired by IBF
Council Member Mr Ong Chong Tee, has made several
recommendations to ensure a better alignment between
pre-employment training and the skills that financial sector
employers desire in fresh graduates. This will ensure that
Singapore graduates continue to be sought after by financial
sector employers and that our financial industry continues
to benefit from well-trained and job-ready graduates.
The Task Force also noted that more could be
done to enhance the soft skills of graduates.
The FTED Task Force comprises the following
distinguished members from the industry,
academia and government agencies (MAS and
WDA):
• Mr Ong Chong Tee, Deputy Managing
Director, MAS (Chairman)
• Mr Jamal Nasir, Area Head of HR Singapore
& SEA, Standard Chartered Bank
• Ms Stella Wong, Head of Human Resources,
HSBC
The Terms of Reference adopted by the FTED Task Force
are:
(i) to assess the adequacy of existing programmes in
imparting the skills sets and skills mix required by the
financial sector;
• Mr Joachim Quah, Director of Human
Resources, Credit Suisse
(ii)to recommend measures to develop such skills through
curriculum enhancement and other avenues; and
• Ms Theresa Soikkeli, Managing Director &
Head of Group Human Resources, DBS
(iii)to recommend ways for better industry-academia
collaboration to facilitate the timely supply of job-
ready graduates. • Ms Cynthia Tan, Head of Group Human
Resources, OCBC
The Task Force has recommended, among other things,
better use of internships to allow students to gain practical
skills and appreciation of the systems and structures
in financial institutions. Internships should be made
compulsory, their duration increased, and financial
institutions should offer more internship opportunities.
• Ms Charlotte Thng, Head of Human
Resource, Citigroup Corporate & Investment
Bank, Citigroup
The Task Force also suggested that, to integrate preemployment training (PET) and practical training even
further, IHLs and financial sector employers could
collaborate to offer “dual training”, modeled on the Swiss/
German model of apprenticeships.
• Ms Molly Yeo, Head of Human Resources,
ABN AMRO
• Ms Jenny Wong, Executive Vice President &
Global Head of Group Human Resources,
UOB
• Dr Bernd Lehmann, Chief Human Resource
Officer, Allianz Insurance Management,
Asia Pacific
• Prof Tan Chin Tong, Provost, SMU
• Prof Lily Kong, Vice Provost (Education),
NUS
• Prof Er Meng Hwa, Acting Provost, NTU
As graduates from other disciplines such as engineering and
mathematics are increasingly sought after by financial sector
employers for their unique skill sets, more could be done to
facilitate the flow of these students into the financial sector,
for example, through the offer of inter-disciplinary modules
and internship opportunities.
• Mr Chia Mia Chiang, Principal, Ngee Ann
Polytechnic
• Mr Low Wong Fook, Principal, Singapore
Polytechnic
• Dr Gary Willmott, Deputy Chief Executive,
WDA
16
organisational
initiatives
and affairs
Annual Report 2006
organisational
initiatives and affairs
Raising the Bar
for Financial
Practitioners
Financial Industry Competency Standards (FICS)
FICS Accreditation
The accreditation system plays a crucial role in ensuring
that competency-based training and assessment are carried
out effectively and supports the integrity and reliability of
FICS certification.
Under the FICS Accreditation Framework, IBF conducts
independent quality review based on 8 Criteria for
Assessment and 9 Criteria for Training. The framework
integrates international best practices and is broadly
aligned to WDA’s Quality Assurance system for Course
Accreditation under the Workforce Skills Qualification
framework (WSQ), subject to modifications recognising
the unique needs of the financial services industry. To create a solid foundation for the FICS to thrive and
meet its objectives, most of IBF’s resources in 2006 were
dedicated to establishing the FICS Accreditation Framework
for Training and Assessment Service Providers. A total of
13 applications were processed in 2006. The accreditation
audit and review encompassed training materials review
spanning an aggregate number of 43 competency units and
assessment materials review for an aggregate number of 63
competency units.
Accreditation Advisory Panel (AAP)
The AAP was established to provide advice and guidance to
IBF on technical aspects of the applications for accreditation
of financial training and assessment programmes from an
industry perspective. To augment the initial panel of 21 members appointed
during the FICS launch in September 2005, the FICS
Working Groups have also kindly agreed to serve as AAP
members for the 48 job families that were launched on
12 June 2006. 17
Building up Assessment Capabilities
One key element to ensure the success of the
FICS implementation is the need to build up
a pool of qualified assessors who have the skills
to develop and conduct competency-based
assessment, in addition to possessing relevant
industry experience and technical competency
for the job roles being assessed. To encourage HR practitioners, financial
professionals and training providers to be
trained as assessors, IBF has drawn on the
Nomura Training Grant to provide funding for
the Competency Based Assessment programme
under the WSQ Advanced Certificate in Training
and Assessment. So far, 53 financial practitioners
from 26 different organisations have successfully
completed the programme.
FICS Certification
More than 50 financial practitioners have been
awarded Statement(s) of Attainment (SOAs)
and 119 practitioners have gone through FICSaccredited training programmes. The number
of certified practitioners is expected to rise
from the current number of 17 as more FICSaccredited training and assessment programmes
are introduced.
FICS PROGESS 2006
Financial institutions
adopting the framework
Financial training providers
adopting the framework
Financial practitioners trained
27
3
119
Financial practitioners awarded
Statement(s) of Attainment
56
FICS certified practitioners
17
18
FICS Funding Scheme
The Monetary Authority of Singapore (MAS)
through the Financial Sector Development
Fund is supporting the training of practitioners
through FICS-accredited programs. The FSDF FICS scheme funds 70% of training
and assessment fees, subject to relevant caps. All
applications for funding can be made through
IBF, on IBF’s website. As at 31 December
2006, we have disbursed a funding amount of
approximately $19,000.
Monthly Sharing Sessions
To reach out to financial institutions and
financial training providers and encourage them
to leverage on the FICS framework to build
human resource capabilities, IBF conducts
monthly sharing sessions to share the key
features of FICS. As at 31 December 2006,
we have reached out to over 80 HR personnel
and industry practitioners through the monthly
sharing sessions.
First foreign full bank to receive FICS accreditation
On 24 July 2006, Standard Chartered Bank
became the first foreign full bank to receive
Financial Industry Competency Standards (FICS)
accreditation as an Accredited Assessment Service
Provider for its “Global Markets, Trading Job
Family Role IV” assessment programme in the area
of Financial Markets: Trading.
First financial institution to be FICS-accredited for
all job roles within a job family
On 17 November 2006, UBS AG achieved FICS
accreditation as a Financial Training Provider and
Assessment Service Provider, within the Relationship
Management: High Net Worth job family (Role V
and VI), in addition to the accreditation it had
earlier received for Roles III and IV in September
2006. With this accreditation, UBS became the
first financial institution to be FICS-accredited for
all job roles within a job family.
FICS Accredited Providers (as at 30 Mar 2007)
Organisation
FICS Job Family and Accreditation Scope
Programme Title
Credit Suisse
Wealth Management: Relationship Management (High Net Worth) - Training and Assessment
Train to Relationship Manager (Job Role IV)
DBS Bank
Corporate Banking: Relationship Management (Enterprise Banking) - Training
Enterprise Banking Development Program
Great Eastern Life Assurance Co. Ltd.
Life Insurance: Claims Handling - Assessment
Professional Competency - Claims Handling
(Job Role III)
Orion Human Capital Wealth Management: Relationship Management (High Net Worth) - Assessment
Assessment Services (Job Role III, IV, V & VI)
Wealth Management: Relationship Management (Retail) - Assessment
Assessment Services (Job Role III)
Standard Chartered Bank
Financial Markets: Trading - Assessment
Global Markets, Trading Job Family Role IV
General Insurance: Claims Handling - Training
General Insurance Claims Handling - Understanding
the Legal and Practical Aspects (General Insurance
- Claims Handling, Job Role III)
Wealth Management: Relationship Management (High Net Worth) - Training and Assessment
i. Client Relationship Management (Level 1)
ii. Client Relationship Management (Levels 2 & 3)
iii.Client Relationship Management (Executive Programme I)
iv.Client Relationship Management (Executive Programme II)
Wealth Management: Relationship Management
(High Net Worth) - Training
i. WMI Certificate in Private Banking (Job Role IV)
ii. The Psychology of Being a Trusted Advisor
UBS AG
Wealth Management Institute
Annual Report 2006
Breaking Ground
Accreditation Advisory
Panel (AAP) Members
FICS Steering Committee
CHAIRPERSON
REPRESENTING
Ms Euleen Goh
• IBF Council
WEALTH MANAGEMENT
Ms Anthonia Hui
Senior Client Partner, Global Market
VICE CHAIRPERSON
Mr David Wong
Managing Director & Country Executive, S.E. A.
ABN AMRO Bank NV
Mr Eli Lenyoun
Head of Wealth Management Services, Asia BNP Paribas Private Bank
• Singapore Foreign Exchange Market
Committee for Financial Markets
Mr Andre Pfaendler
Deputy Head, Business School Campus Asia
Credit Suisse, Singapore
COMMITTEE MEMBERS
Ms Joan Ting-Wong
Managing Director & Joint Head
Corporate Credit Group
DBS Bank
• Association of Banks in Singapore
for Corporate Banking
Dr Dennis Wat
Managing Director, Investment Advisory Group
HSBC Private Bank (Suisse) SA Singapore
Mrs Yvette Cheak
Managing Director & Head,
Group Ethics & Compliance
BNP Paribas
• Association of Banks in Singapore
for Compliance and Risk Management
Mr Wee Yan Hann
Head of Investment, Private Banking
OCBC
Mr Gerald Ong
CEO
PrimePartners Corporate Finance Pte Ltd
• Singapore Investment Banking
Association for Corporate Finance
Mr Wong Siu Fun
Managing Director & Regional Head, Private Bank
DBS Bank
Mr Hou Wey Fook
Executive Director
Lion Capital Management Ltd
• Investment Management Association of Singapore for Fund Management
Ms Stella Tan
CEO Tenet Insurance Company Ltd
• General Insurance Association of Singapore for General Insurance
Assoc Prof Annie Koh
Dean, Executive Education and Associate Dean,
Lee Kong Chian School of Business
Singapore Management University
• Financial Training Providers
Ms Loo Siew Yee
CEO, IBF
Director, Strategic Development
Financial Centre Development Department
• Monetary Authority of Singapore
Dr Yim-Teo Tien Hua
Director
Community & Professional Services Division
Singapore Workforce Development Agency
• Singapore Workforce Development Agency
Mr Tee Fong Seng
Managing Director
Head of Wealth Management International, Singapore
UBS AG
• Association of Banks in Singapore for Wealth Management (Private Banking)
Mr Anil Wadhwani
Business Director & Head of Retail Banking Citibank Singapore Ltd
• Association of Banks in Singapore for
Wealth Management (Retail Banking)
FINANCIAL MARKETS
Mr David Dredge
Head of Local Markets Trading, Asia and Global Markets Head
ABN Amro, Singapore
Mr Lee Boon Huat
Regional Treasurer, South East Asia
Mr Loh Boon Chye
Managing Director & Head of Global Markets
Deutsche Bank
Mr Ng Kwan Meng
Managing Director, Global Treasury,
Financial Products & Services
UOB
Mr Stephan Repkow
Head of Fixed Income, Singapore & Head of ALM - Treasury, Asia Pacific
BNP Paribas
Mr Ronny Tan
Chief Country Officer & General Manager
Deutsche Bank
Mr Wong Ban Suan
Managing Director & Head, Central Treasury
DBS Bank
COMMITTEE MEMBERS WHO STEPPED DOWN DURING THE YEAR
LIFE INSURANCE
Mr Edgar Teo
Director, Strategic Development
Financial Centre Development Department
Mr Patrick Kok
Asst Vice President, Claims & Policy Services
American International Assurance Company, Ltd
Mr Reeve Ong
Head, Claims Dept
Great Eastern Life
GENERAL INSURANCE
Ms Chang Bee Wah
Senior Manager, Claims Dept
Aviva Insurance (International) Ltd
Ms Lucy Loh
Vice President, Claims
American Home Assurance Co, AIG Limited
Mr G.P. Teo
Tokio Marine & Fire Insurance Co (S) Pte Ltd
Mr Freddy Neo
General Manager, General Insurance Dept
NTUC Income
(Also for Life Insurance)
19
FICS Working Groups
20
COMPLIANCE & RISK
MANAGEMENT WORKING
GROUP MEMBERS
CHAIRPERSON
Mrs Yvette Cheak
Managing Director & Head, Group
Ethics & Compliance
BNP Paribas
WG MEMBERS
Mr Joseph Chen
Head of Group Consumer Credit
DBS Bank
Mr Chin Wee Cheak
Vice President
Regulatory Compliance Unit
General Counsel’s Office
OCBC Bank
Mr Noel D’Cruz
Head Risk Portfolio Management
Unit
OCBC Bank
Ms Goh Geok Cheng
Director, Finance
Prudential Assurance Co. Singapore
(Pte) Ltd
Mr Conrad Lim
Head of Legal & Compliance
Credit-Suisse Singapore Branch
Mr Lim Him Chuan
Vice President, Group Risk
DBS Bank
Ms Ong Peck Kim
Head, Risk Management
Maybank
Mr Phua Kok Khiang
Asst. Director Compliance
Legal and Compliance
UBS AG
Mr Tee Wooi Seong
Credit Client Relationships,
Singapore
Ms Lily Teo
Head of Legal
Bayerische Hypo- Und Vereinsbank
Mr Joseph Wong
Head of Credit for Consumer
OCBC Bank
CORPORATE BANKING
WORKING GROUP MEMBERS
CHAIRPERSON
Ms Joan Ting-Wong
Managing Director & Joint Head
Corporate Credit Group
DBS Bank
WG MEMBERS
Mr Goh Chong Theng
General Manager, Singapore Branch
Rabobank International
Ms Jasmine Lau
Head - Risk Analysis Unit
Hongkong & Shanghai Banking
Corporation Ltd
Mr Jamal Nasir
Senior Human Resource Manager
Annual Report 2006
CORPORATE FINANCE WORKING GROUP MEMBERS
CHAIRPERSON
Mr Gerald Ong
CEO
PrimePartners Corporate Finance
Pte Ltd
WG MEMBERS
Mr Loh Hoon Sun
Managing Director
Phillip Securities Pte Ltd
Mr Friets Nels
Managing Director and Head of Equities (ASEAN)
Citicorp Investment Bank
(Singapore) Ltd
Mr Soo Yu Chuan
Senior Vice President
Assistant Head
Risk Management & Regulation Group
Singapore Exchange Ltd
Mr Tan Jeh Wuan
Managing Director
Equity Capital Market
DBS Bank
Mr Kim Teo
Head of Retail Equities
CIMB - GK Securities Pte Ltd
FINANCIAL MARKETS
CHAIRPERSON
Mr David Wong
MD & Country Executive, S.E.A.
ABN AMRO Bank NV
WG MEMBERS
Mr Guan Yeow Kwang
Joint General Manager
Mizuho Corporate Bank Ltd
Dr Aaron Low
Principal, Lumen Advisors LLC
Managing Director
Lumen Advisors (Asia) Pte Ltd
Mr Ng Kwan Meng
Managing Director
Global Treasury, Financial Product & Services
United Overseas Bank Ltd, Head Office
Mr Ooi Boon Peng
Executive Director
UOB Asset Management Ltd
FUND MANAGEMENT
CHAIRPERSON
Mr Hou Wey Fook
Executive Director
Lion Capital Management Ltd
WG MEMBERS
Dr Joseph Lim
Dept of Finance & Accounting
National University of Singapore
Mr V. Giri Mudeliar
Executive Director
Investment Management Association
of Singapore
Mr Anson Tay
Chief Operating Officer
SG Asset Management (Singapore) Ltd
Mr Teo Joo Wah
Director Fund Management
Temasek Holdings (Pte) Ltd
Mr Thio Boon Kiat
Director
GENERAL INSURANCE
CHAIRPERSON
Ms Stella Tan
CEO
Tenet Insurance Company Ltd
WG MEMBERS
Ms Lucy Loh
Vice President - Claims
American Home Assurance
Company, AIG Limited
Ms Edna Ngo
Division Manager - Claims
Tenet Insurance Co Ltd
Mr Derence Teo
Consultant, HRD
Allianz Insurance Management Asia Pacific Pte Ltd
Mr Ronald Yee
HRD Manager
NTUC Income Insurance
Cooperative Ltd
LIFE INSURANCE WORKING
GROUP MEMBERS
CHAIRPERSON
Mr Jason Sadler
General Manager
HSBC Insurance (Singapore) Pte Ltd
WG MEMBERS
Ms Wendy Ang
Trainer
AXA Life Insurance Singapore Pte Ltd
Ms Lim Ai Ling
Asst Vice President, HR
Manulife (Singapore) Pte Ltd
Mr Nelson Raj
Manager FPCOE, Distribution
AXA Life Insurance Singapore Pte Ltd
Mr Jimmy Tan
Vice President, Strategic Resource Management
Great Eastern Life Assurance Co Ltd
Ms Koh Wan Tsyr
Asst Director
Prudential Assurance Co. Singapore
(Pte) Ltd
Mr Ronald Yee
HRD Manager
NTUC Income Insurance
Cooperative Ltd
WEALTH MANAGEMENT
(PRIVATE BANKING)
WORKING GROUP
CHAIRPERSON
Mr Tee Fong Seng Managing Director & Head of Wealth Management
International, Singapore
UBS AG
WG MEMBERS
Mr Eddie Gan
Senior Vice President
Private Banking
DBS Bank
Ms Anthonia Hui
Senior Client Partner
Credit Suisse Private Bank
Mr Eli Lenyoun
Head of Wealth Management
Services, Asia BNP Paribas Private Bank
WEALTH MANAGEMENT
(RETAIL BANKING) WORKING GROUP
CHAIRPERSON
Mr Anil Wadhwani
Business Director & Head of Retail Banking
Citibank Singapore Limited
WG MEMBERS
Ms Joyce Heng
Vice President
Consumer Banking Group
(Sales Competency & Training)
DBS Bank
Mr Joseph Kwok
Manager, Financial Advisory
Wealth Management
Consumer Banking
Mr Glenn Lee
Associate Director (Marketing & Business Development)
UOB Asset Management
Ms Ngo Min Ying
General Manager
Shared Distribution
Ms Jesslyn Tan
Vice President, Centre for Excellence
Great Eastern Life Assurance Co. Ltd
FINANCIAL TRAINING
PROVIDER WORKING GROUP MEMBERS
CHAIRPERSON
Assoc Prof Annie Koh
Dean, Executive Education and
Associate Dean, Lee Kong Chian
School of Business
WG MEMBERS
Mr Philip Forrest
Managing Director, Asia
Omega Performance
Ms Khoo Sor Hwa
Course Manager
Accounting & Finance
Temasek Business School
Temasek Polytechnic
Mr Paul Tan
Section Head (Banking & Finance)
School of Business & Accountancy
Ngee Ann Polytechnic
Ms Lim May May
Regional Director
FT Knowledge Financial Times
Ms Loke Sai Keng
Vice President, Learning &
Development Centre
UOB Group
Ms Juanita Mega
Regional Sales Director
Financial Markets, Asia
The Financial Training Company
Ms Cynthia Ng
Vice President, Learning and Development
The Hongkong & Shanghai Banking
Corporation Ltd
Dr Johnny Tan
Managing Director
Impact Consultancy & Training Pte Ltd
Ms Wong Mei Shan
Section Head, Banking Section
School of Business
Singapore Polytechnic
Enhancing the Job Readiness
of Graduates
Finance Preparatory Programmes (FPP)
The Financial Talent Education and Development
(FTED) Task Force (see Highlights of the Year) is a key
IBF-led initiative to enhance the alignment between preemployment training (PET) and industry expectations
of fresh graduates. To complement this longer term
strategic initiative, and to help meet immediate manpower
requirements, IBF has developed finance preparatory
programmes (FPPs) in consultation with industry players
and financial training providers, to bridge the gap between
PET and actual job requirements.
To develop young talent in risk management, IBF developed
an FPP with the NUS Risk Management Institute (RMI),
aimed at equipping final year university students with
sound foundational and practical knowledge of financial
risk management. Introduced in December 2006, the 10day intensive “Certificate in Risk Management” covered
topics on Mathematical Foundations of Risk Measurement,
Finance Theory and Financial Instruments, and Risk
Management Practices.
To address manpower needs in middle and back office
operations, IBF is working with the Securities &
Investment Institute (SII), UK and ACI Singapore – The
Financial Markets Association, to launch the Operations
Finance Preparatory Programme (OFPP). Candidates who
complete OFPP will obtain the Investment Administration
Qualification (IAQ) by the SII and the Certificate of
Settlement Operations Introductory Course (SOIC) from
ACI Singapore. The first run has been scheduled for July
2007. The development of OFPP has benefited from
active input from major investments banks and Temasek
Polytechnic.
In the area of fund administration, IBF will also be working
closely with MAS, Nanyang Polytechnic and several fund
administration players to discuss the feasibility of offering
an FPP to final-year polytechnic students. This will help
to develop a pipeline of job-ready graduates to meet the
manpower needs of the fund administration industry which
has grown significantly over the past year.
Outreach to Talent Pools
Financial Sector Seminar Series for
Local Students
To encourage student interest in growth areas
such as wealth management (private banking,
fund management, trust, and insurance) and
treasury operations, IBF collaborated with
leading industry practitioners to profile career
opportunities in those areas through a series of
talks at the local universities and polytechnics. Ten events were organized. Invited panelists
and speakers include Mr Henk De Glint
(Fortis Bank), Mr Eli Lenyoun (BNP
Paribas), Mr Lee Chiwi (British & Malayan
Trustees Limited), Mr Michael Darwyne
(Portcullis Trust), Mr Scott Ryrie (XL Re), Ms Arati Varma (Chubbs Specialty Insurance),
Mr David Wong (ABN AMRO), Mr Andrew
Kwek (IMAS), Mr Terry Lee (ACI Singapore),
Ms Carol Chan (Credit Suisse), Mr Christopher
Tan (Providend Private Limited), Mr Guan Yeow
Kwang (SFEMC) and Ms Aruno Rajaratnam
(FINEX, Asia for Willis Insurance Brokers).
In our continuing effort to better profile the
opportunities and skills requisites, and to
attract top talents to the growth areas in the
financial services industry, IBF will continue to
collaborate with the industry and the institutes
of higher learning in 2007 to offer such talks.
21
22
Continuing Education
and Training
Continuing Education Programmes For
Trading Representatives (CEPTR)
To meet the continuing education needs of the trading
representatives of SGX, the Institute continued to
collaborate with SGX to deliver a suite of courses covering
topics ranging from product knowledge and skill updates to
rules and regulations (see below list). In 2006, IBF offered a
total of 12 courses and 888 trading representatives attended
them, an increase from a total of 544 in 2005.
• A Disciplined Approach to Wealth Management (offered twice)
• Anti-Money Laundering / Countering Terrorist
Financing Laws and Practices
• Anti-Money Laundering Laws and Practices
• Candlestick Charting - For Short-Term Trading Signals
• Equity Derivatives - Warrants, Futures and Options
• Financial Asset Price Movements and the Singapore Economy
• Managing Personal Wealth : A Stewardship (offered twice)
• Recent Developments in Anti-Money Laundering Guidelines
• The Road to IPO (offered twice)
• Trading with Charts (offered twice)
• E-learning - Equity Derivatives and Warrants
• E-learning - Equity Valuation, Settlement and Custody
and the Singapore Equity Market
In addition, upon requests from G.K. Goh Financial Services
(S) Pte Ltd (formerly known as G.K. Goh Futures) and
Ong First Tradition Pte Ltd, IBF facilitated the delivery
of 3 in-house programmes on “Anti-money Laundering/
Countering Terrorist Financing Laws and Practices”
and “Recent Developments in Anti-Money Laundering
Guidelines” for their staff. The courses were conducted in
March, April and November.
Annual Report 2006
MoneySENSE programmes
IBF continued to partner with the Civil Service
College (CSC) Singapore to offer a programme
“Investing for Life” in September. A total of 21
attendees participated in the session.
Talk Series
IBF also collaborated with Portcullis Trust
(Singapore) Limited, to organize a talk entitled
“What Can Trusts Do for You”. The talk, held in
July 2006, drew a total of 21 participants from
our member banks.
23
Capital Markets and Financial
Advisory Services (CMFAS)
Examination
Figure 1 - CMFAS Enrolment
Chart 2005 and 2006
260
6
2005
2006
217
0
2500
1500
115
8
121
8
171
3
175
0
2000
139
7
M-1
M-1A M-1B
M-2
M-3
402
31
17
299
633
621
720
0
519
500
584
1000
430
In addition, to facilitate
the efforts of financial
institutions in moving staff
from other regional countries
to the offices in Singapore, the
Institute continued to accede
to requests for administering
examinations overseas during
certain lull periods. One
such examination was held
in October 2006 for 24
candidates in Mumbai upon
request from ICICI Bank Ltd.
3000
0
In 2006, the Institute received
a total registration of 8,151
candidates for the CMFAS
examination. This represents
a slight increase from the
8,117 candidates enrolled in 2005.
M-4A M-4B
M-6
M-7
Legend
Module 1
Module 1A Module 1B Module 2 Module 3 Module 4A Module 4B Module 6 Module 7 Rules and Regulations for Dealing in Securities (Up to 15 April 2005)
Rules and Regulations for Dealing in Securities (SGX-ST Members)
Rules and Regulations for Dealing in Securities (Non-SGX-ST Members)
Rules and Regulations for Trading in Futures Contracts
Rules and Regulations for Fund Management
Rules and Regulations for Advising on Corporate Finance
Rules and Regulations for Advising on Corporate Finance (Solely Debt Securities)
Securities Products and Analysis
Futures Products and Analysis
The Institute continued
to administer 6 of the 9
modules of the CMFAS
examinations on behalf of the MAS. This is to ensure that
licensed representatives who are carrying out regulated
activities and financial advisory services under the Financial
Advisers Act (FAA) and Securities and Futures Act (SFA) have
a good understanding of the relevant rules and regulations,
as well as the products and analysis tools and techniques.
A breakdown of the examination registration by CMFAS
modules is given in Figure 1. The Institute launched a
web-based online examination registration system in July
2005 to allow individuals and financial institutions to
register and pay for the examinations at anytime and from
anyplace. This system was further enhanced in February
2006 to allow online transfer of examination dates. The
Institute would like to thank the Monetary Authority of
Singapore (MAS), Singapore Exchange Ltd (SGX), Central
Provident Fund Board (CPF), Investment Management
Association of Singapore (IMAS) and the Singapore
Investment Banking Association (SIBA) for their strong
support and assistance given to the Institute over the
years in the review of the study guides and examination
questions to ensure that they remain adequate and relevant.
Examination on Treasury
Activities (ETA)
The ETA examination aims to equip
practitioners in treasury activities with a high
standard of dealing knowledge and skills, as
well as professional and ethical conduct. The
examination is based on the Singapore Guide
to Conduct and Market Practices for Treasury
Activities (also known as “The Blue Book”)
issued by the Singapore Foreign Exchange
Market Committee (SFEMC). In 2006, 34
candidates sat for the examination.
24
Regional Partnership
and Outreach ASEAN Banking Council Permanent
Committee on Education
11th Biennial Asian & Pacific Association of
Banking Institutes (APABI) Conference
IBF participated in the 36th ASEAN Banking
Council Meeting held on 18 Nov 2006 in
Singapore with the theme “Asian Unity and
Integration”. Represented on the Permanent
Committee on Education along with the
Banking Institutes of other member countries,
IBF supports the efforts of the Banking Council
to narrow the development gap amongst the
ASEAN members. While several member
countries are currently at the stage of setting
up banking institutes as training providers, and
leveraging on the training programmes offered
by other members’ banking institutes, IBF stands
ready to share its experience and expertise in
developing the Financial Industry Competency
Standards to interested member countries.
Since the inaugural meeting chaired by IBF in 1986, the
APABI conference has been holding biennial meetings
with the objectives of promoting greater rapport and
understanding of banking education and training and
cooperation among members in banking education and
training. Annual Report 2006
The 11th Biennial APABI Conference was held in Seoul,
Korea from 22 to 24 October 2006. Chaired by the Korea
Banking Institute, the conference was well attended by 14
members representing various national banking institutes
in the Asian-Pacific region. With the theme “New Roles
of The APABI - Meeting the Challenges of Change and
Innovation”, the importance of accelerating the learning
and development process to deal with increasingly complex
risks and heightened pace of change and innovation have
been the recurring themes throughout the exchange of
experiences and ideas among members. IBF also shared its
various recent initiatives, such as the launch of FICS, since
its transformation in 2001 to take on a wider and more
strategic role of facilitating the development of a robust,
forward-looking financial sector training infrastructure
for Singapore.
25
Membership and Partnership
Membership of the Institute
Total number of members as at 31 Dec 2006 was 169, a net decrease of 6 members
compared to 175 at the end of 2005. During the year, 1 new member joined the
Institute and 7 left. The slight drop in membership was mainly due to organizational
restructuring and cessation of operations in Singapore.
Local Banks
DBS Bank
Far Eastern Bank Ltd
OCBC Bank
United Overseas Bank Ltd
Foreign Full Banks
ABN AMRO Bank N.V.
American Express Bank Ltd
Bangkok Bank Public Company Ltd
Bank of America, N.A.
Bank of China Ltd
Bank of India
BNP Paribas
Calyon
CIMB Bank Berhad
Citibank N.A.
HL Bank
Indian Bank
Indian Overseas Bank
Maybank
PT Bank Negara Indonesia (Persero)
TBK
RHB Bank Berhad
Sumitomo Mitsui Banking
Corporation
The Bank of East Asia Ltd
The Bank of Tokyo-Mitsubishi
UFJ, Ltd
The Hongkong & Shanghai Banking
Corporation Ltd
UCO Bank
Wholesale Banks
Australia & New Zealand Banking
Group Ltd
Barclays Bank plc
Bayerische Hypo-Und Vereinsbank
Aktiengesellschaft
BNP Paribas Private Bank
Commerzbank Aktiengesellschaft
Credit Industriel et Commercial
Credit Suisse
Deutsche Bank AG
Dresdner Bank AG
First Commercial Bank
Fortis Bank S.A./N.V.
Habib Bank Ltd
HSBC Private Bank (Suisse) SA
Industrial & Commercial Bank of
China Limited
ING Bank N.V.
Sanpaolo IMI S.P.A (Name changed
to Intesa Sanpaolo S.P.A in Jan 2007)
Korea Exchange Bank
Landesbank Baden-Württemberg
Mizuho Corporate Bank Ltd
National Australia Bank Ltd
National Bank of Kuwait SAK
Norddeutsche Landesbank
Girozentrale
Rabobank
Societe Generale
The Bank of Nova Scotia
The Northern Trust Company
The Royal Bank of Scotland plc
UBS AG
VTB Bank Europe plc
WestLB AG
Westpac Banking Corporation
Offshore Banks
Agricultural Bank of China
Arab Bank plc
Banca di Roma S.P.A
Bank of Communications Co Ltd
Bank of New Zealand
Canadian Imperial Bank of
Commerce
Chang Hwa Commercial Bank Ltd
China Construction Bank
Corporation
Clariden Leu Ltd
Commonwealth Bank of Australia
Credit Agricole (Suisse) SA
Dexia Banque Internationale A
Luxembourg SA
DnB NOR Bank ASA Singapore
Branch
DZ BANK AG Deutsche ZentralGenossenschaftsbank, Frankfurt
Am Main
Hang Seng Bank Ltd
ICICI Bank Ltd
Krung Thai Bank Public Company Ltd
Mitsubishi UFJ Trust & Banking
Corporation
Natixis
Nordea Bank Finland plc
Philippine National Bank
PT Bank Mandiri (Persero) TBK
Raiffeisen Zentralbank Oesterreich
Aktiengesellschaft
Royal Bank of Canada
Skandinaviska Enskilda Banken
AB(publ)
State Bank of India
Svenska Handelsbanken AB
The Bank of New York
The Korea Development Bank
The Norinchukin Bank
The Siam Commercial Bank Public
Co Ltd
The Sumitomo Trust & Banking
Co Ltd
Union de Banques Arabes et
Francaises
Woori Bank
Merchant Banks
Asean Finance Corporation Ltd
Bank Pictet & Cie (Asia) Ltd
Bank Sarasin-Rabo (Asia) Limited
Calyon Merchant Bank Asia Ltd
Coutts Bank von Ernst Ltd
Credit Suisse (Singapore) Ltd
Daiwa Securities SMBC Singapore Ltd
DVB Group Merchant Bank (Asia) Ltd
Fortis Private Banking Singapore
Limited
ING Asia Private Bank Ltd
Lloyds TSB Merchant Bank Ltd
Merrill Lynch International Bank Ltd
Mitsubishi UFJ Securities
(Singapore) Limited
N M Rothschild & Sons (Singapore) Ltd
Nomura Singapore Ltd
The Bank of Nova Scotia Asia Ltd
The Nikko Merchant Bank
(Singapore) Ltd
Toronto Dominion (SEA) Ltd
Capital Markets Services Licence
Holder
Aberdeen Asset Management Asia Ltd
AIG Global Investment Corporation
(Singapore) Ltd
APS Asset Management Pte Ltd
AXA Rosenberg Investment
Management Asia Pacific Ltd
Barclays Capital Futures (Singapore)
Pte Ltd
Black River Asset Management
(Asia) Pte Ltd
BNP Paribas Securities (Singapore)
Pte Ltd
CIMB-GK Securities Pte Ltd
Citigroup Global Markets Singapore
Pte Ltd
Commerzbank Asset Management
Asia Ltd
Credit Agricole Asset Management
Singapore Ltd
Credit Suisse Securities (Singapore)
Pte Ltd
Daiwa Securities SMBC Futures
Pte Ltd
DBS Asset Management Ltd
DBS Vickers Securities Group
Deutsche Asset Management (Asia) Ltd
DMG & Partners Securities Pte Ltd
Fimat Singapore Pte Ltd
First State Investments (Singapore)
Fraser Securities Pte Ltd
HSBC Futures (Singapore) Pte Ltd
J.P. Morgan Securities Singapore
Pte Ltd
Kim Eng Securities Pte Ltd
Lehman Brothers Inc
Lim & Tan Securities Pte Ltd
Lion Capital Management Limited
Macquarie Securities (Singapore)
Pte Ltd
Man Financial (S) Pte Ltd
Mitsubishi UFJ Trust International
Limited
Mizuho Futures (Singapore) Pte Ltd
Nomura Asset Management
Singapore Ltd
OCBC Securities Pte Ltd
Ong First Tradition Pte Ltd
Pheim Asset Management (Asia)
Pte Ltd
Phillip Futures Pte Ltd
Phillip Securities Pte Ltd
SBI E2-Capital Asia Securities Pte Ltd
Schroder Investment Management
(Singapore) Ltd
SG Asset Management (Singapore) Ltd
State Street Global Advisors
Singapore Limited
UOB Bullion & Futures Ltd
UOB Kay Hian Pte Ltd
Wellington International
Management Co Pte Ltd
Western Asset Management
Company Pte Ltd
Rep Offices of Banks
Aozora Bank Ltd
Arab Banking Corporation (BSC)
Finance Companies
Hong Leong Finance Ltd
Sing Investments & Finance Ltd
Singapura Finance Ltd
Exchange Holding Company
Insurer
AXA Financial Services (Singapore)
Pte Ltd
Others
Cargill Asia Pacific Treasury Ltd
Ernst & Young
Government of Singapore
Investment Corporation Pte Ltd
Guoco Investment Services Pte Ltd
Portcullis Trustnet (Singapore) Pte Ltd
PricewaterhouseCoopers
Volvo Treasury Asia Ltd
26
f-NExT Partners
The total number of f-NExT partners was 46, as at 31
Dec 2006, a net decrease of 5 members, compared to 51
at the end of 2005. The drop was due to organizational
restructuring. With the successful roll-out of the FICS, IBF
will be engaging our f-NExT partners to seek accreditation
under FICS.
Academic Institutions
INSEAD
Nanyang Polytechnic
Nanyang Technological University
National University of Singapore
Ngee Ann Polytechnic
Singapore Polytechnic
Temasek Polytechnic
University of Chicago
e-Learning Training Providers
ICUS
Intuition
KESDEE Inc.
Knowledge Platform
Financial Training Providers
British Council
D C Gardner Training
EuroFinance
Euromoney Training
Financial Perspectives
FT Knowledge Financial Learning
FTC Kaplan
Impact Consultancy & Training
Pte Ltd
KPMG
Omega Performance
PricewaterhouseCoopers
PSB Academy
SBF Training & Consultancy
(International) Pte Ltd
Standard and Poors, Risk Solution
(Asia Pacific)
The Risk Management Association
Wall Street Consulting
Wealth Management Institute
Annual Report 2006
Financial Training Providers - Startup
Achieva Training
Amsterdam Institute of Finance
Asian Center for Financial Training
CFE-In-Practice
ENB Consulting
Evolvere Inc
GFTT - Global Financial Training and
Technology
PI ETA Consulting Company
SC Learning Ltd
The Banking Group, Inc
The Matchett Group
Other Partners
Professional Institutes/Bodies
Management Development Institute of Singapore
Singapore Human Resources Institute
Singapore Institute of Management
27
Organisational Improvements
- Information Technology
FICS Accreditation Case Management System
Enhancement to Online Examination Registration
With Competency Standards for all 52 job families
launched on 12 June 2006, the Institute implemented a
case management tracking system for the FICS auditors.
In addition to allowing the systematic tracking of all
assessment/training submissions, it will also capture all the
audit findings for update and review purposes.
FICS Funding Application System
The Institute implemented a system where Financial
Institutions could submit all information required for their
FICS funding claims online without the hassle of having
to keep hard-copy records of supporting documents. In
addition, the system allows for tracking of response time
for processing of funding applications.
With the successful implementation and
overwhelming response to the online
examination registration system rolled-out in
July 2005, the Institute further enhanced the
system to enable candidates to make examination
date transfers online. This has also enjoyed
favorable response from the candidates. For the
year 2006, approximately 60% of examination
candidates opted for online examination
registration and more than 65% of examination
date transfers were done online. Relocation of the Institute’s Office Premises in March 2007
The Institute of Banking and Finance is pleased
to announce the relocation of its office premises
to 10 Shenton Way, #13-07/08 MAS Building,
Singapore 079117, effective 26 March 2007.
This move serves to accommodate the growth
of the Institute and underscores our strong links
and partnership with the Monetary Authority
of Singapore.
The Institute’s new office premises at MAS Building
Distinguished guests from the IBF Council and FICS
Steering Committee visiting our new office premises on
18 Apr 2007
report of the
council members
and financial
statements
(Incorporated in the Republic of Singapore as a company limited by guarantee)
Registration No. 197402045E
report of the
council members
29
The Council Members present their annual report together with the audited accounts of the Institute of Banking
and Finance (the “Institute”) for the financial year ended December 31, 2006.
1
COUNCIL MEMBERS
The Council Members in office at the date of this report are:
Heng Swee Keat, Chairman
Wee Ee Cheong, Vice Chairman
The Association of Banks in Singapore
David Philbrick Conner
The Association of Banks in Singapore
Jackson Tai
Local Bank Representative
Gary Maurice Willmott
Ministry of Manpower
Ong Chong Tee
Loh Boon Chye
The Singapore Foreign Exchange Market Committee
Derek Teo
General Insurance Association of Singapore
Christopher Ho Siow Soong
Singapore Reinsurers’ Association
George Lee Lap Wah
The Singapore Investment Banking Association
Lee Kah Chuen
Ministry of Education (Appointed on April 9, 2006)
Representing:
Seck Wai Kwong
Singapore Exchange Limited
(Appointed on March 27, 2006)
Catherine Weir
Foreign Bank Representative
(Appointed on February 28, 2006)
Euleen Goh Yiu Kiang
Financial Industry Competency Standards Representative
(Appointed on February 28, 2006)
Lester Gray
Investment Management Association of Singapore
(Appointed on October 6, 2006)
Karine Kam
(Appointed on July 1, 2006)
2
COUNCIL MEMBERS’ CONTRACTUAL BENEFITS
A Council Member received benefits in the form of compensation as a member of the senior management of
the group of which the investment manager appointed by the Institute is a part. Apart from this, no Council
Member has received or become entitled to receive benefits by reason of a contract made by the Institute
with the Council Member or with a firm of which he is a member, or with a company in which he has a
substantial interest.
30
3
SHARE CAPITAL AND OPTIONS
The Institute has no share capital and as such the provisions of Section 201(6)(f ), 201(6)(g), 201(8),
201(11), 201(12)(a) and (b) of the Singapore Companies Act, Cap. 50 are not applicable.
ON BEHALF OF THE COUNCIL MEMBERS
Heng Swee Keat
Chairman
Wee Ee Cheong
Vice-Chairman
Singapore
May 2, 2007
Annual Report 2006
independent auditors’ report
to the members of the institute
of banking and finance
We have audited the accompanying financial statements of The Institute of Banking and Finance (the “Institute”)
which comprise the statement of fund balances, assets and liabilities as at December 31, 2006, the statement
of income and expenditure, changes in members’ funds and cash flow statement for the year then ended, and a
summary of significant accounting policies and other explanatory notes, as set out on pages 33 to 49.
Council Members’ Responsibility
The Institute’s council members are responsible for the preparation and fair presentation of these financial
statements in accordance with Singapore Financial Reporting Standards and the Singapore Companies Act, Cap.
50 (the “Act”). This responsibility includes: designing, implementing and maintaining internal control relevant to
the preparation and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
the council members, as well as evaluating the overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
31
32
Opinion
In our opinion,
(a)
the financial statements of the Institute are properly drawn up in accordance with the provisions of the
Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of
the Institute as at December 31, 2006 and of the results, changes in members’ funds and cash flows of the
Institute for the year ended on that date; and
(b)
the accounting and other records required by the Act to be kept by the Institute have been properly kept in
accordance with the provisions of the Act.
Deloitte & Touche
Certified Public Accountants
Singapore
May 2, 2007
Annual Report 2006
statement of fund balances,
assets and liabilities
December 31, 2006
33
Note
2006
$
2005
$
25,279,206
24,698,686
5
1,012
31,880
Current assets
Investments
6
Inventories
Accrued members’ subscriptions
Accounts receivables
Other receivables and prepayments
7
Cash and cash equivalents
14
Total current assets
21,388,988
3,105
577
8,005
120,766
5,522,310
27,043,751
20,738,276
8,730
577
7,584
59,923
5,676,705
26,491,795
Current liabilities
Payables
8
Courses and examinations fees received in advance
Total current liabilities
102,802
46,780
149,582
169,807
28,060
197,867
Net current assets
26,894,169
26,293,928
Non-current liabilities
Operating grant
9
Members’ funding contributions
10
Total non-current liabilities
670,128
945,847
1,615,975
660,275
966,847
1,627,122
Net assets
25,279,206
24,698,686
Members’ funds
Income and expenditure account
Represented by:
Plant and equipment
Less:
The annexed notes form an integral part of and should be read in conjunction with these accounts.
statement of income
and expenditure
Year ended December 31, 2006
34
Note
2006
$
2005
$
Income
Fees from courses and examinations
Interest on bank deposits
Members’ subscriptions
Sale of publications
Entrance fees from new members
FSDF funding - reimbursements
Fair value change on investments
Sundry receipts
Total income 1,018,187
111,101
51,700
13,451
100
18,667
650,712
35,700
1,899,618
1,054,361
64,358
49,450
7,925
200
30,417
1,206,711
Expenditure
Printing and miscellaneous expenses
for courses and examinations
FSDF funding - claims
Salaries and staff expenses
11
Standards, Accreditation and Certification expenses
12
Office rental
Depreciation of plant and equipment
5
Professional fees
Electricity, telephone and postages
Data processing
Repairs and maintenance
Printing, stationery and periodicals
Audit fee
Rental of copiers
Other administrative expenses
Total expenditure
149,709
18,667
898,252
116,899
31,211
16,609
17,869
11,655
2,845
3,704
7,500
2,520
41,658
1,319,098
104,657
778,843
482,036
87,674
31,096
24,452
19,043
8,882
5,724
6,039
7,000
2,520
62,974
39,913
1,660,853
Excess (Deficit) of income over expenditure for the year
580,520
Annual Report 2006
(454,142)
statement of changes
in members’ funds
35
Income and
expenditure
account
$
Balance at January 1, 2005
24,351,578
Effect of adoption of FRS 39
801,250
As restated at January 1, 2005
25,152,828
Deficit of income over expenditure for the year
(454,142)
Balance at December 31, 2005
24,698,686
Excess of income over expenditure for the year
580,520
Balance at December 31, 2006
25,279,206
cash flow statement
36
Note
2006
$
2005
$
Operating activities
Excess (Deficit) of income over expenditure
Adjustments for:
Depreciation
Interest income
Operating loss before working capital changes
580,520
(454,142)
(650,712)
31,211
(111,101)
(150,082)
62,974
31,096
(64,358)
(424,430)
Inventories
Accrued members’ subscriptions
Accounts receivables
Other receivables and prepayments
Payables
Courses and examinations fees received in advance
Cash used in operations
5,625
(421)
(22,419)
(67,005)
18,720
(215,582)
Interest received
Net cash used in operating activities
72,677
(142,905)
Investing activity
Purchase of plant and equipment
(343)
Financing activities
Contributions by members
Refund of contributions to members
Interest earned and credited to operating grant
Net cash (used in) from financing activities
5,500
(26,500)
9,853
(11,147)
8,000
(13,000)
7,970
2,970
Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
14
(154,395)
5,676,705
5,522,310
(238,728)
5,915,433
5,676,705
Annual Report 2006
765
2,073
18,981
65,966
64,377
(25,900)
(298,168)
56,470
(241,698)
-
notes to accounts
December 31, 2006
These notes form an integral part of and should be read in conjunction with the accompanying accounts. The
accounts are expressed in Singapore dollars, which is also the functional currency of the Institute.
1
GENERAL
The Institute (Registration No. 197402045E) is incorporated in the Republic of Singapore as a company
limited by guarantee with its registered office and principal place of business at 10 Shenton Way #13-07/08,
MAS Building, Singapore 079117. Each member’s liability is limited to $1,000.
The principal activities of the Institute are the organization and conduct of appropriate activities and
services to promote continuous learning and the highest standards of workforce competency across the
financial services sector. The Institute acts as the central executive arm of a collaborative network, known
as the Financial Network for Excellence in Training (or f-NExT), and works closely with the financial
institutions, industry associations and bodies, financial training providers and relevant government agencies.
This encompasses administering part of the Capital Markets and Financial Advisory Services (CMFAS)
examination series on behalf of the Monetary Authority of Singapore and the provision of Continuing
Education Programmes for Trading Representatives (CEPTR) courses. The Institute is also the national
accreditation and certification agency for financial industry competency under the Financial Industry
Competency Standards (FICS) framework.
The Institute administers the Financial Sector Development Fund (FSDF)’s FICS funding scheme,
introduced on June 12, 2006 to support training fees for FICS-accredited programmes, on behalf of the
Monetary Authority of Singapore. The Institute is reimbursed on a quarterly basis for amounts it disburses
under the scheme.
The accounts of the Institute for the year ended December 31, 2006 were authorised for issue by the
Council on May 2, 2007.
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING - The accounts are prepared in accordance with the historical cost convention,
except as disclosed in the accounting policies below, and are drawn up in accordance with the provisions of
the Singapore Companies Act and Singapore Financial Reporting Standards (“FRS”).
In the current financial year, the Institute has adopted all the new and revised FRSs and Interpretations of
FRS (“INT FRS”) issued by the Council on Corporate Disclosure and Governance that are relevant to its
operations and effective for annual periods beginning on or after January 1, 2006. The adoption of these
new/revised FRSs and INT FRSs does not result in changes to the Institute’s accounting policies and has no
material effect on the financial statements.
37
38
At the date of authorisation of these accounts, the following FRSs, INT FRSs and amendments to FRS were
issued but not effective:
FRS 40 -
FRS 107
-
FRS 108
-
INT FRS 107 -
INT FRS 108 -
INT FRS 109 -
INT FRS 110 -
INT FRS 111
-
INT FRS 112
-
Investment Property
Financial Instruments: Disclosures
Operating Segments
Applying the Restatement Approach under the FRS 29
Financial Reporting in Hyperinflationary Economies
Scope of FRS 102
Reassessment of Embedded Derivatives
Interim Financial Reporting and Impairment
FRS 102 - Group and Treasury Share Transactions
Service Concession Arrangements
Amendments to FRS 1 Presentation of Financial Statements on Capital Disclosures.
The application of FRS 107 and the consequential amendments to other FRS will not affect any of the
amounts recognised in the financial statements, but will change the disclosures presently made in relation to
the Institute’s financial instruments and the objectives, policies and processes for managing capital.
Other than FRS 107, the Institute’s Council anticipates that the adoption of the above FRS and INT FRS
in future periods will have no material impact on the financial statements of the Institute in the period of
their initial adoption.
FINANCIAL INSTRUMENTS - Financial assets and financial liabilities are recognised on the Institute’s
balance sheet when the Institute becomes a party to the contractual provisions of the instrument.
Financial assets
Investments are recognised and de-recognised on a trade date where the purchase or sale of an investment
is under a contract whose terms require delivery of the investment within the timeframe established by the
market concerned, and are initially measured at fair value, net of transaction costs except for those financial
assets classified as at fair value through profit or loss which are initially measured at fair value.
Other financial assets are classified into the following specified categories: financial assets “at fair value
through profit or loss”, “held-to-maturity investments”, “available-for-sale” financial assets and “loans and
receivables”. The classification depends on the nature and purpose of financial assets and is determined at
the time of initial recognition.
Annual Report 2006
Consequential amendments were also made to various standards as a result of these new/revised standards.
39
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and
of allocating interest income or expense over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash receipts or payments through the expected life of the financial
instrument, or where appropriate, a shorter period. Income is recognised on an effective interest rate basis
for debt instruments other than those financial instruments “at fair value through profit or loss”.
Account receivables
Account receivables are measured at initial recognition at fair value, and are subsequently measured at
amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable
amounts are recognised in the income and expenditure statement when there is objective evidence that the
asset is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount
and the present value of estimated future cash flows discounted at the effective interest rate computed at
initial recognition.
Investments
Investments are classified as financial assets at fair value through income and expenditure and are measured
at subsequent reporting dates at fair value. Gains and losses arising from changes in fair value are included
in income and expenditure for the period.
Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Institute are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Institute after deducting
all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
40
Payables
Payables are initially measured at fair value, net of transaction costs, and are subsequently measured at
amortised cost, using the effective interest rate method.
The effective interest method is a method of calculating the amortised cost of a financial instrument and
of allocating interest income or expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments through the expected life of the financial liability, or where
appropriate, a shorter period.
Derivative financial instruments
The Institute’s investment activities expose it to the financial risks of changes in foreign exchange rates and
interest rates.
The Institute uses derivative financial instruments (primarily foreign currency forward contracts) to manage
its risks associated with its investments. The Institute does not use derivative financial instruments for
speculative purposes.
Derivative financial instruments are initially measured at fair value on the contract date, and are remeasured
to fair value at subsequent reporting dates. Changes in the fair value of derivative financial instruments are
recognised in income and expenditure as they arise.
PLANT AND EQUIPMENT - Plant and equipment are stated at cost less accumulated depreciation and
any accumulated impairment losses where the recoverable amount of the asset is estimated to be lower than
its carrying amount.
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using the straightline method, on the following bases:
Furniture and fittings
-
Computers and equipment -
Renovation
-
Fully depreciated assets still in use are retained in the accounts.
The gain or loss arising on disposal or retirement of an item of plant and equipment is determined as the
difference between the sales proceeds and the carrying amounts of the asset and is recognised in the income
and expenditure statement.
INVENTORIES - Inventories consisting of books held for sale are stated at the lower of cost (first-in, firstout) and net realisable value.
Annual Report 2006
5 years
3 to 5 years
3 years
41
RETIREMENT BENEFIT COSTS - Payments to defined contribution retirement benefit plans are
charged as an expense as they fall due. Payments made to state-managed retirement benefit schemes, such as
the Singapore Central Provident Fund, are dealt with as payments to defined contribution plans where the
Institute’s obligations under the plans are equivalent to those arising in a defined contribution retirement
benefit plan.
EMPLOYEE LEAVE ENTITLEMENT - Employee entitlements to annual leave are recognised when they
accrue to employees. A provision is made for the estimated liability for annual leave as a result of services
rendered by employees up to the balance sheet date.
PROVISIONS - Provisions are recognised when the Institute has a present obligation as a result of a past
event, it is probable that the Institute will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.
OPERATING GRANT - Grant received to meet the operating expenses incurred for a specific training
programme is recognised as income over a period to match with the related expenses.
INCOME RECOGNITION - Fees from courses and examinations are recognised when the courses or
examinations are completed.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the asset’s net carrying amount.
Income from sale of publications is recognised when significant risks and rewards of ownership are transferred
to the buyer and the amount of income and the costs of the transaction can be measured reliably. All other
income is recognised on an accrual basis.
FOREIGN CURRENCY TRANSACTIONS - Transactions in currencies other than the Singapore
dollar (the Institute’s functional currency), are recorded at the rates of exchange prevailing on the date
of the transaction. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are
denominated in foreign currencies are re-translated at the rates prevailing on the rate when the fair value was
determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not
re-translated.
42
Exchange differences arising on the settlement of monetary items, and on re-translation of monetary items
are included in income and expenditure for the period. Exchange differences arising on the re-translation of
non-monetary items carried at fair value are included in income and expenditure for the period.
INCOME TAX - The Institute was granted “Charitable Organisation” status on March 24, 1993 and is
exempted from the payment of income tax with effect from Year of Assessment 1994 subject to compliance
with the provisions of Section 13M(2)(b) of the Income Tax Act.
CASH AND CASH EQUIVALENTS - Cash and cash equivalents comprise cash on hand and demand
deposits, bank overdrafts, and other short-term highly liquid investments that are readily convertible to a
known amount of cash and are subject to an insignificant risk of changes in value.
3
CRITICAL ACCOUNTING JUDGEMENTS AND
KEY SOURCES OF ESTIMATION UNCERTAINTY
Critical judgements in applying the Institute’s accounting policies
In the application of the Institute’s accounting policies, which are described in Note 2, the Council is
required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities
that are not readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
Key sources of estimation uncertainty
The Institute has not made any key assumptions concerning the future, and other key sources of estimation
uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.
Annual Report 2006
43
4
FINANCIAL RISK MANAGEMENT
The Institute has adopted risk management policies that seek to mitigate its exposure to financial risks in a
cost-effective manner.
i)
Foreign exchange risk
Foreign exchange risk arises from a change in foreign currency exchange rate which is expected to
have an adverse effect on the Institute.
The Institute faces minimal foreign currency risk as its assets and liabilities are denominated primarily
in Singapore dollars.
The Institute enters into foreign exchange derivatives to manage the foreign exchange risk when the
need arises.
Interest rate risk
ii)
All the financial assets and liabilities at year end bear no interest rate risk except for cash and fixed
deposits which are short term in nature. The average interest rate on cash and fixed deposits for the
financial year ranges from 1.60% to 3.45% (2005 : 0.63% to 1.70%) per annum.
Credit risk
iii)
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting
in a loss to the Institute. The Institute has adopted the policy of dealing only with creditworthy
counterparties as a means of mitigating the risk of financial losses from defaults.
The Institute does not have any significant credit risk exposure to any single counterparty or any
group of counterparties having similar characteristics.
The carrying amounts of financial assets recorded in the accounts represent the Institute’s maximum
exposure to credit risk.
Fair value of financial assets and financial liabilities
iv)
The carrying values of financial assets and financial liabilities reported in the statement of fund
balances, assets and liabilities approximate their fair values due to their relatively short maturities
except for investments whose fair values are disclosed in Note 6 to the financial statements.
44
5
PLANT AND EQUIPMENT
Furniture
and fittings $
Cost:
At January 1, 2005 and
at December 31, 2005
Additions At December 31, 2006
1,163,186
1,163,186
Accumulated depreciation:
At January 1, 2005
Depreciation
At December 31, 2005
Depreciation
Carrying amount:
Computers
and equipment
$
Renovation
$
Total
$
820,562
343
820,905
147,675
2,131,423
- 343
147,675
2,131,766
1,161,268
568
1,161,836
568
1,162,404
764,172
28,194
792,366
28,309
820,675
143,007
2,334
145,341
2,334
147,675
782
230
-
1,350
28,196
2,334
2,068,447
31,096
2,099,543
31,211
2,130,754
1,012
31,880
6
INVESTMENTS
Investments comprise funds placed with an investment manager for discretionary management.
At the balance sheet date, the composition of the funds under management and their indicative fair values
are as follows:
Annual Report 2006
Cash and cash equivalents
Quoted fixed income investments
Quoted unit trust
Forward foreign exchange contracts
Total
2006
Assets
$
4,966,534
6,390,206
9,807,765
224,483
21,388,988
2005
Assets
$
758,172
7,191,795
12,672,359
115,950
20,738,276
45
The Institute’s investments excluding forward foreign exchange contracts (Note 15) that are not denominated
in the functional currency are as follows:
2006
$
2005
$
Denominated in:
United States dollars
Hong Kong dollars
During the current financial year, a management fee of $52,810 (2005 : $38,379) was paid to the investment
manager. A council member of the Institute is a member of the senior management of the group of companies
of which the investment manager is a part.
7
OTHER RECEIVABLES AND PREPAYMENTS
These comprise:
2,681,768
7,125,997
2006
$
2005
$
34,678
12,615
50,882
22,591
120,766
24,794
8,264
12,458
14,407
59,923
Security deposits
Prepaid expenses
Interest receivables
Other debtors
Total
The Institute’s other receivables are denominated in the functional currency of the Institute.
8
PAYABLES
These comprise:
3,141,940
9,530,419
2006
$
2005
$
8,705
94,097
102,802
18,265
151,542
169,807
Trade payables
Accrued expenses
Total
Trade payables and accrued expenses principally comprised amounts outstanding for trade purchases and
operating expenses.
The Institute’s payables are denominated in the functional currency of the Institute.
46
9
OPERATING GRANT
In 1990, the Institute received from Nomura Singapore Ltd. (“Nomura”), an operating grant of $1,000,000
to fund an annual training programme on investment management in Singapore for a period of five years.
However, Nomura has agreed to allow the Institute to retain the balance in the unused grant which has been
placed in fixed deposit for future use by the Institute.
Balance at the beginning of the year
Movements during the year:
Interest received on fixed deposit
Balance at the end of the year
2006
$
2005
$
660,275
652,305
9,853
670,128
7,970
660,275
The operating grant is denominated in the functional currency of the Institute.
10
MEMBERS’ FUNDING CONTRIBUTIONS
These represent amounts contributed by members when they were admitted to the Institute. The
contributions are refundable to the members when they cease to be members and are considered as financial
liabilities of the Institute.
11
SALARIES AND STAFF EXPENSES
2006
$
2005
$
Costs of defined contribution plans included in salaries and staff expenses
68,998
66,374
Compensation of key management personnel
The remuneration of members of key management during the year was as follows:
Annual Report 2006
Short-term benefits
2006
$
2005
$
166,340
134,567
47
12
STANDARDS, ACCREDITATION AND CERTIFICATION EXPENSES
In 2005, the standards, accreditation and certification expenses comprised mainly consultancy fees for the
FICS project and were net of amounts of $403,250 and $403,001 being reimbursements from Singapore
Workforce Development Agency and the Monetary Authority of Singapore, respectively, for their respective
share of the cost of this project.
13
INCOME TAX
Under Section 13M(2)(b) of the Income Tax Act, Cap. 134, the Institute is exempted from income tax in
a financial year if it applies at least eighty per cent of its tax adjusted income for that financial year towards
the objectives of the Institute by the end of the following financial year.
For the current financial year ended December 31, 2006, the Institute needs to expend approximately
$1,137,561 (2005 : $819,142) towards its objectives by December 31, 2007 to enable the Institute to
obtain exemption from tax in respect of donation and sums accrued to it in 2006.
14
CASH AND CASH EQUIVALENTS
2006
$
5,399,006
123,304
5,522,310
2005
$
Fixed deposits
Cash and bank balances
Total
5,034,975
641,730
5,676,705
Fixed deposits bear interest at an average rate of 1.81% (2005 : 1.16%) per annum and are for a tenor of
approximately 180 days (2005 : 180 days).
The Institute’s fixed deposits, cash and bank balances are denominated in the functional currency of the
Institute.
48
15
FINANCIAL DERIVATIVE CONTRACTS
As at the balance sheet date, the Institute has the following outstanding financial derivative contracts which
were transacted to manage its currency exposure:
2006
2005
Forward foreign exchange contract
Notional principal:
Sell
US$1,600,000
US$1,800,000
Sell
HK$35,200,000
HK$43,700,000
Buy
S$9,618,155
S$12,473,849
The total gross positive fair value of the outstanding forward foreign exchange contracts is $224,483 (2005
: $115,950) (Note 6).
16
OPERATING LEASE COMMITMENT
2006
$
2005
$
119,419
90,194
Minimum lease payments paid under operating lease
At the balance sheet date, commitments in respect of operating lease for the rental of office premises and
equipment were as follows:
2006
$
2005
$
Within one year
In the second to fifth year inclusive
35,398
4,650
40,048
31,745
7,170
38,915
Annual Report 2006
The Institute’s operating lease payments is negotiated for an average term of 2 years and rentals are fixed for
an average of 2 years.
49
17
EVENT AFTER THE BALANCE SHEET DATE
On February 2, 2007, the Institute entered into an operating lease commitment for a period of 3 years
commencing on April 1, 2007 for the lease of new office premises at a monthly rental of $26,241.
18
RECLASSIFICATION AND COMPARATIVE FIGURES
Certain reclassifications have been made to the prior year’s financial statements to enhance comparability
with current year’s financial statements. As a result, certain line items have been amended on the face of
the statements of fund balances, assets and liabilities, income and expenditure, changes in members’ funds,
and the related notes to the financial statements. Comparative figures have been adjusted to conform with
current year’s presentation.
Statement of fund balances, assets and liabilities
Total members’ fund
Non-current liabilities
- members’ funding contributions
Statement of Income and Expenditure
Fees from courses and examinations (net)
Fees from courses and examinations
Printing and miscellaneous expenses for
courses and examinations 2005
As currently
reported
$
2005
As previously
reported
$
24,698,686
25,665,533
966,847
-
1,054,361
(104,657)
949,704
-
Reclassification
$
(966,847)
966,847
(949,704)
1,054,361
(104,657)
50
statement of
council members
In the opinion of the Council Members, the accounts set out on pages 33 to 49 are drawn up so as to give a true
and fair view of the state of affairs of the Institute as at December 31, 2006 and of the results, changes in members’
funds and cash flows of the Institute for the financial year then ended and at the date of this statement, there are
reasonable grounds to believe that the Institute will be able to pay its liabilities as and when they fall due.
ON BEHALF OF THE COUNCIL MEMBERS
Heng Swee Keat
Chairman
Wee Ee Cheong
Vice-Chairman
Singapore
May 2, 2007
Annual Report 2006
Company No.: 197402045E
Incorporated in Singapore
notice of annual
general meeting
NOTICE IS HEREBY GIVEN that the 32nd Annual General Meeting of The Institute of Banking and Finance
(the “Institute”) will be held at the Taurus/Leo Room, Level 1 Marina Mandarin Singapore, 6 Raffles Boulevard,
Marina Square, Singapore 039594 on Wednesday, 30th May 2007 at 4.00 p.m. for the purpose of transacting the
following ordinary business of the Institute:
AGENDA
1.
To receive and consider the Council’s Report and Audited Accounts of the Institute for the year ended 31
December 2006 together with the Auditors’ Report thereon.
2.
To appoint Messrs Ernst & Young as the Institute’s Auditors in place of the retiring Auditors, Messrs Deloitte
& Touche and to authorise the Council Members to fix their remuneration. [See Explanatory Note (i)]
3.
To transact such other ordinary business as may be properly transacted at an Annual General Meeting.
BY ORDER OF THE COUNCIL
Jim Lim Kheng Huat
Secretary
15 May 2007
Explanatory Note:
(i) The Institute has received notice from a member, Messrs United Overseas Bank Limited, nominating Messrs Ernst & Young as the
Institute’s Auditors in place of the retiring Auditors, Messrs Deloitte & Touche. Messrs Ernst & Young have expressed their willingness to
accept the appointment. This nomination for the appointment will be tabled for members’ approval at this Annual General Meeting.
Note:
1. A Member entitled to attend and vote at the Annual General Meeting (the “Meeting”) is entitled to appoint not more than two proxies to
attend and vote on his behalf. A proxy need not be a Member of the Institute.
2. The instrument appointing a proxy, must be deposited at the registered office of the Institute at 10 Shenton Way, #13-07/08 MAS Building
Singapore 079117 not less than forty-eight hours (48) before the time appointed for holding the Meeting.
3. A corporation which is a Member of the Institute may, by resolution of its directors, authorise any person to act as its representative at
the Meeting of the Institute, and such representative shall be entitled to exercise the same powers on behalf of the corporation which he
represents as if he had been an individual member of the Institute.
51
52
proxy form
We
name of member
of
registered address
Singapore
being a member of The Institute of Banking and Finance (the “Institute”) hereby appoint
name of individual
designation
or failing him
name of individual
designation
as our proxy to vote for us on our behalf at the 32nd Annual General Meeting of the Institute to be held at
the Taurus/Leo Room, Level 1 Marina Mandarin Singapore, 6 Raffles Boulevard, Marina Square, Singapore
039594 on Wednesday, 30th May 2007 at 4.00 pm and at any adjournment thereof.
As witness our hand this day of 2007.
Director
Director / Secretary
An instrument appointing a proxy must be lodged at the Registered Office of the Institute at 10 Shenton Way, #13-07/08 MAS
Building, Singapore 079117, not later than 48 hours before the time appointed for holding the annual general meeting or any
adjournment thereof.
The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorized in writing. Where
the instrument is executed by a corporation, it must be executed either under its common seal or under the hand of its officer or attorney
duly authorised.
Annual Report 2006
Corporate
Information
Secretary to the Council
Jim Lim Kheng Huat
Auditors
Deloitte & Touche
Certified Public Accountants
Solicitors
Shook Lin & Bok
Advocates and Solicitors
Principal Officer
Loo Siew Yee
CEO
10 Shenton Way
#13-07/08 MAS Building
Singapore 079117
Tel
: 65 6220 8566
Fax
: 65 6224 4947
email
: info@ibf.org.sg
website : www.ibf.org.sg

IBF Cover copy 8 - The Institute of Banking and Finance

Transcription

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