Fresh from the market: AFMA s new online Fundamentals of Financial Markets & Regulation Meet your market guide This is Jimmy, who ll be your students guide through this course. Like your students, Jimmy works in a marketplace - a fruit market. You d be surprised how similar these markets are, so Jimmy will stick around to illustrate the key concepts we ll be explaining. You see, as the owner of a fruit stall, Jimmy faces many issues similar to those faced by financial market participants. His many customers have different needs, his prices are affected every day by different factors (eg. cyclones, exchange rates), and there is a lot of regulation he needs to meet. Australian financial markets are some of the most successful, innovative and fast-paced in the world, but for those new to this sector, they can seem incredibly complex and difficult to grasp sometimes it can even seem like people are speaking a completely different language! In response, AFMA has built an online industry introduction to help new market entrants gain an understanding of Australian financial markets. A better understanding of the context in which their work takes place will contribute immeasurably to their job effectiveness and their career progress. AFMA s online training program will make it easier for new participants to understand Australian financial markets, the jargon and the products that can seem completely bewildering at times. This is because we ve invited along Jimmy the Fruitologist to accompany your students. Did you know that fruit markets operate in a similar way to financial markets? It sounds bizarre, we know, but just as seasonal factors affect the supply and pricing of fruit in our local fruit shop, economic and political factors affect the supply and pricing of financial market products. Because we re all comfortable with how fruit markets work, we ve used this metaphor in the training modules to gently guide students through the sometimes complex world of financial markets, with Jimmy as our guide. Jimmy is an illustrated advocate, simplifying the subject matter for your students, and helping to maintain their interest by relating concepts in a way they can all easily understand. Jimmy will help to demystify the markets and help your students to build their own picture of how it all fits together and why it works that way.
What s so special about AFMA s online training? It s custom designed for the Australian market Most online courses are generic and not specific to the Australian market. However, AFMA s course was developed in consultation with several Learning and Development Managers and industry practitioners from some of Australia s leading financial institutions. It provides an accessible and up-to-date snapshot of Australian financial markets, its participants, products and regulatory regime. We use Plain English Many introductory financial courses bamboozle participants with jargon, making it even harder for them to learn complex financial concepts. Our industry induction uses plain English and explains the meaning of jargon, by using the fruit market example to break concepts down. It s user-friendly online design aids learning of complex material It s easy to use and introduces concepts gradually so participants are not cognitively overloaded. Participants are led on an intuitive journey that allows them to learn at their own pace. Further, all of the information explained is supported via the use of visual mnemonics (ie. the illustrated Jimmy in a variety of situations), which act as a mental shorthand for explaining key concepts. This aligns with the recent research of Sweller et al (1998,2003), and Paivio et al (1986). The focus is on understanding not impressing or distracting participants with whiz bang graphics. It s interactive and provides feedback It contains tasks and/or research activities for participants to extend and deepen their understanding beyond the content provided in the course. Completing these activities also helps participants prepare for the quiz at the end of each module. The quizzes can be used to benchmark participants The quizzes can be used to benchmark participants to identify their learning needs. Potential AFMA Financial Services Accreditation Program candidates can also use the quizzes to assess their current knowledge, given the minimum level of knowledge assumed in that course.
What s in this course? There are four modules in total that build knowledge, each one extending upon the previous. Each module also contains tasks or research for your students to complete that will extend and deepen their understanding beyond the content provided in the industry induction and build reflection and research skills. Each module also gently integrates the knowledge learned in previous modules, encouraging your students to develop higher order skills in synthesis and application. Here s some more detailed information on what we ll discuss in each module. Module 1: What is a financial market? The first module provides an overview of the different market types, and the people and organisations that use them. The aim of this module is to sketch a framework of understanding that is progressively fleshed out with more information in later modules. By completing this module, students will be equipped to: describe the differences between the two main types of financial markets explain what an asset class is and which products are grouped in each outline the reforms that helped fuel the growth of Australian markets and their products distinguish between primary and secondary trading identify the different market participants and describe their main reasons for participating
Module 2: What influences our markets? Module 2 looks at how our economy is shaped by regular events such as data releases (eg. the inflation figures), or the policy decisions taken by official bodies (eg. the Reserve Bank of Australia changing interest rates). These impacts are examined because they influence prices, which affect participants decision-making, both in the short and long term. Do you remember what big news it was in the media when the Reserve Bank of Australia (RBA) last raised interest rates? Do you know why it raised them? This module will discuss how and why the RBA makes this decision, and the impact it has throughout the different financial markets. This module will also examine who else can act to change the Australian economy, and how that action can influence financial market activity, depending on how exposed a certain product is to that data release or policy. Students will begin to understand why some trading desks go berserk after certain data is released! By completing this module, students will be equipped to: broadly outline how the Australian economy is structured describe the effect that inflation has on our economy and financial markets explain the Reserve Bank of Australia s role and the impact its decisions have on our economy and financial markets explain the government s role via fiscal policy (that is, the budget) identify the interaction between the global economy and the Australian economic environment
Module 3: What financial products are available? This module examines the typical financial products used by financial market trading participants. It will explain why the features of each product might encourage a participant to choose one over the other or even use one to offset the other. The aim of this module is to provide participants with some insight into why certain products are so popular in trading markets by focusing on the major financial products that are commonly dealt or traded in Australia today providing another piece of the financial markets puzzle. This module will try to demystify some of the jargon that each asset class seems to have. Ideally, by the end of this module, students will be able to read a financial newspaper without thinking it s just a jumble of numbers they ll have some insight into what some of the products are, and why they re being traded. Note, however, that it will not examine other investment products such as superannuation, insurance or property, as these can t be traded in the markets as such. By completing this module, students will be equipped to: describe the characteristics of key products, and explain which markets they re traded on describe why a market participant might choose one product over another, integrating the knowledge gained in Module 1 differentiate between products that seem similar outline what news events might affect the value of a product, and why by integrating the knowledge gained in Module 2
Module 4: How are our markets regulated? Module 4 completes the picture by examining what regulatory structures exist to ensure everyone participating in financial markets plays by the same rules, whether they are buying or selling. This module will first introduce the relevant laws and then go on to discuss the major regulators and co-regulators there to enforce them. It will then examine how selfmanagement can work, and the role of bodies such as AFMA in that process. Understanding this area will help students to know their market rights and their obligations. It will examine the following areas: 1. Legislation and common law principles most relevant to financial markets, operators and participants. 2. Key regulators in Australian financial markets, and discuss their scope. 3. The features of self-management in financial markets. By the time students complete this topic, they should be able to discuss how each of these three areas protect the markets and how they work together to do so. By completing this module, students will be equipped to: identify the major pieces of legislation and common law principles directing and influencing activity in Australian financial markets describe the role of the key statutory regulators in Australian financial markets, and how they oversee the legislation they are responsible for explain how co-regulation works within the market, and discuss the rules used by the principal exchange to enforce it discuss the features of self-management in financial markets, and describe how it can add value
Designed for The Fundamentals of Financial Markets & Regulation is ideal for new participants wishing to develop a broad understanding of Australian financial markets, or an existing participant who has learned on the job and wants to plug any knowledge gaps. It is of particular use for those in the following roles: Settlements Middle and back office/operations Internal and external auditors Credit departments Risk management and compliance Legal professionals (whether in-house counsel, or providing services to banking or corporate clients) Learning & Development, HR and Training Managers (whether in-house counsel, or providing services to banking or corporate clients) Senior management or directors of financial institutions or corporations who oversee business lines with financial market exposures, but do not have direct experience of them Professional services firms providing consulting advice to financial institutions or corporations Individuals seeking to learn about financial markets in order to make more informed and diversified investment decisions Individuals seeking a change of career direction and wishing to learn about the Australian OTC market Successfully completing the four modules within the program is also excellent preparation for those planning to complete the AFMA Accreditation Program or the AFMA Operations Accreditation Program, but are concerned about the assumed knowledge that program contains.
About afmalearning The Fundamentals of Financial Markets & Regulation is delivered via AFMA s new on-line training network afmalearning. AFMA is now utilising multiple delivery platforms (not just face-to-face) to offer our members a more blended learning solution. AFMA, like never before, is committed to offering unique and dynamic education solutions that can meet the changing needs of our members. The Apple Tree is a symbol of growth. One of AFMA s primary objectives is to encourage the stable growth of Australia s wholesale financial markets which continue to record strong and sustained growth. Total financial markets turnover topped AUD 120 trillion in 2007. Over the past 5 years, annual financial markets turnover has grown at a compound average rate of 19.1%. A key feature in the growth of these markets is the ongoing commitment of AFMA to the professional development of the individuals in these markets.
How can I access the course? The content is delivered through Microsoft Internet Explorer version 6 or higher. There is no need for Java applets to be installed on user PCs nor are their any firewall issues to be addressed. The content is hosted within AFMA s LMS, a Talent 2 / Southrock product. The training can also be made available as AICC content delivered into your existing LMS should this be more convenient. Please note that this LMS system is not currently compatible with Apple Computers. Continuing education 5 Continuing Education Hours (including 1.5 Compliance and Regulation hours) Pricing Member 4 modules $572 inc GST Non-member 4 modules $715 inc GST Note: Group discounts are also available Want to see more? For more information on the service, or if you would like to see a full demonstration of this online training, you can contact Jason Sheil at email: jsheil@afma.com.au or telephone Jason on Tel: 02 9776 7914. For your convenience, we ve included a registration form on the following page should any of your staff like to undertake the course.
Fundamentals of Financial Markets & Regulation Registration Form Personal details q Dr q Mr q Ms Name Surname Position Company name Address All enquiries and applications should be directed to: Tel: (61 2) 9776 7914 Fax: (61 2) 9776 4488 Email: education@afma.com.au Web: www.afma.com.au Posted applications should be directed to: AFMA Education & Training GPO Box 3655 Sydney NSW 2001 City State Postcode Country Telephone Mobile Fax Email Are you an AFMA Member Yes / No Pricing q Member 4 modules $572.00 inc GST q Non-member 4 modules $715.00 inc GST This document becomes a Tax Invoice for GST purposes upon completion and payment. Please photocopy and retain for your records. Method of payment Attach cheque made payable to AFMA or provide credit card details below: q Visa q Mastercard q American Express q Diners Club Please note a surcharge applies of 2.75% for American Express and 3.72% for Diners Club. Cardholder s name Total amount $ Card number Expiry date CCV* Signature * 3 digit number found on the back of your Mastercard or Visa; 4 digit number found on your American Express Terms and Conditions Payment Terms For AFMA Members, invoices are issued upon enrolment and are payable within 14 days of being issued. Full payment is required at the time of registration from non-member organisations. Cancellation and Transfers To obtain a full refund, delegates must notify AFMA in writing at least 10 working days prior to the program start date that they wish to transfer to an alternate program, or cancel. Delegates who transfer or cancel from a program inside 10 working days from the program start date are liable for the full program fee. No refunds will be given in this instance. Substitutions can be made, with prior notification to AFMA, at any time up to the program start date with no penalty Non attendance If a delegate fails to attend a program, program fees will not be refunded or allocated to another program. General AFMA reserves the right to cancel, postpone or re-schedule programs due to low enrolments or unforeseen circumstances. Full refunds or transfers will be given in this instance. AFMA is not liable for any costs incurred by the attendee if the program is cancelled or postponed. AFMA reserves the right to change course fees, dates, content, speakers or method of presentation at its discretion. The information in this brochure was correct at the time of publication but may be subject to change. Privacy All personal information collected by AFMA is protected by the Privacy Act, 1988. Information collected on this enrolment form is for the purposes of processing registrations and creating and maintaining student records. Information will not be disclosed to third parties except where authorised or required by law. Please forward any enquiries you may have in relation to privacy to info@afma.com.au www.afma.com.au