Common Purpose Rory Collins

8/14/2019 Common Purpose Rory Collins

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A MAGAZINE FOR MEMbERs OF thE

ACCA UKFINANcIAl sERvIcEs NEtwORk

AUGUST 2008

Islamic

nance a history

nfinancial

servicesreview

a look at the history andprinciples of this growingniche market


2/20

2 financial services review Augu 2008

did you know?teACCA UKeie a uk.accaglobal.com onain a ea of Uk-peifi informaion add

i o your faourie i!

from the chairFinancial Services Review

Issue 87 August 2008

Editor

luy caderood

29 linon Inn Fied london wc2A 3EE

e: +44 (0)20 7059 5882

fax: +44 (0)20 7059 5858

.aagoa.om

Financial Services Review i puied

quarery y AccA. Arie are puied

in good fai iou reponiiiy on e

par of e puier or auor for ooaioned from aing or refraining from

aion a a reu of any ie expreed

erein. te opinion are no neeariy

oe of e underaing i empoy e

auor, and oud no e regarded a e

offiia opinion of AccA exep ere aed.

ti doumen a no reguaory au.

I i iued for guidane purpoe ony.

Noing onained in i doumen oud

e aen a oniuing e amendmen or

adapaion of eACCA Rulebook . In e

een of any onfi eeen e onen of

i doumen and e onen of e

ACCA Rulebook, e aer a a a imeae preedene.

A orrepondene oud e en o:

Arid loeae,ACCA UK,

29 linon Inn Fied, london wc2A 3EE

e: 020 7059 5913

fax: 020 7059 5959

e-mai: [email protected]

No par of i puiaion may e

reprodued, ored in a reriea yem,

or ranmied in any form or y

any mean, eeroni, meania,

pooopying or oerie, iou prior

rien permiion of e puier.

Welcome to this latest edition of Financial

Services Review.

Our indury oninue o e under

e poig, and e redi run and i

onequene rume on. Our pane diuion

on e opi of e redi run, ed a e

london soo of Eonomi, i no onine

and I ope a you ae ad e ane o

ie i. A in o e ideo ip an e found

on canne 3 a http://tv.accaglobal.com/.

tere a a good mixure of peaer and

opinion oied and a o of deae on raing

agenie and reguaion. I i an inereing

a and, if reean o your deeopmen,

ieing i i or 2 cPD poin. Fooingon from e ue of e deae, deai of

i an e found on page 14 and 15, a

un diuion a ed i ey memer

and ommenaor, and a ie ea a

oed y Aounany Age Inider buine

cu. we are aready panning our nex pane

diuion, in onjunion i e seuriie

and Inemen Iniue (sII), on e nex

rii ooming on e orizon: infaion. ti

deae i ae pae in Ooer and more

deai i e aaiae on e eie oon.

coninuing e eme of exporing oer

o opi, e are peaed o ae an arie

from Dr Naaie soon on Iami Finane, a

opi i a e uje of a ery popuarunime eure. te ae in European

Union egiaion i oered y a ummary of a

eure gien y our ead of EU Pariamenary

affair, Dr Daid Doye.

A ne page of e magazine, Reear

and conuaion Updae oer e ae

or underaen y AccA tenia Poiy

and Reear eam, ed y see Priddy. te

ae ongoing onuaion an e found

onine a www.accaglobal.com/publicinterest/

activities/policy_papers/forthcoming/. taing

par in reponding o onuaion, ere

reean o your deeopmen, an oun

oard cPD a e a eing a reaiey

eay ay o ge more inoed in e or of

AccA. te pane and I ae an aie roe in

i or and find i ery rearding I oud

enourage you o ge inoed oo. Gien e

ig profie of e finania erie indury,

i i imporan o mae ure a AccA and

i memer ae a mu ay and infuene

a poie, i regard o enia reear

paper and onuaion doumen.ACCA

UK, i e uppor and guidane of e

pane, i urreny exporing forging ronger

in eeen u and e FsA, and fouing on

geing AccA au in Europe and Europeanegiaion more prominen.

wor on e auumn eure programme i

e under ay. Deai of een onfirmed o

far an e found in in rief. Furer deai

and e ooing proedure i e up on e

eie in eary Augu.

te pane andACCA UKaff are ere o

uppor you. Peae do end u your idea and

feeda y onaing our neor manager,

Arid loeae, on 020 7059 5913 or

[email protected].

Jim beeridge

cair Finania serie Neor Pane


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3financial services review Augu 2008

contentsAccA and common Purpoe

Auumn 2008 programme for Finania

serie Neor

in brief04

04

Islamic finance a history

Iami finane i groing exponeniay,

and aounan need o underand e

prinipe underying i nie mare.

Dr Naaie soon expain

cover story

05

08

13

14

16

18

19

10

14

05European Financial Services

action plan

in June, memer ere preened i

an updae on a range of EU finania

erie direie. luy caderood

repor

saying no gracefully

o ofen do you ome under preure

o ay ye en you no you are

uniey o e ae o deier?

tea simpon o o you anay no graefuy

research and consultation update

the credit crunch your views

a ummary of e pane diuion

ciming Ou Of e credi crun

CPD making the most of your

9-5 time

aundan earning opporuniie i

an onriue oard your cPD are

rig in fron of your noe. caum

Roon oo a or-aed earning

aiiie

professional courses for Sept/October

Profeiona coure proide a ide

ariey of een inuding in-dep

oure, corporae Aounan

Updaing Programme and cPD

onferene, perona deeopmen

raining and reidenia updae

financial services network panels

10

features


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inbrief

ACCA and Common PurposeACCA is working with Common Purpose to

support members wishing to improve their

leadership skills.

Are you an inpiraiona eader or in

need of inpiraion? Inreaing peiaiaion,

mouning or preure and ong our

eaen a eader apaiy o ee opporuniie,

roaden neor and refre eir iion for

emee and eir organiaion. common

Purpoe eaderip deeopmen programme

proide a ia onex.

common Purpoe a founded in 1989

and no run more an 70 programmein 10 ounrie around e ord. Oer

120,000 eader ae een inoed in our

programme. In e Uk, more an 70% of

FtsE 100 ompanie, a e a many maer

organiaion, ae ued common Purpoe

o deeop eir eader. tey and eir

organiaion onieny repor:

eer raegi ining and deiion-

maing, dramaiay enaned eaderip

ompeenie and a greaer aiiy o appy

em in ne iuaion

an inreaed aiiy o produe rea ange,

ereer i i needed

common Purpoe deeop e noedge,

onneion and inpiraion of eader

from a aground. I i a no-for-profi

organiaion a run unique eaderip

deeopmen programme a equip

eader i e i ey need o mae a

differene a or or in oiey.

te eaderip programme for experiened

eader inude:

20:20 if you are a eader oe pereof infuene i expanding o a regiona,

naiona or inernaiona ee

Marix and Fou for experiened eader

in on and maer iy oaion

tekNOw a fexie, peronaied

programme for eader in iie and iy

region

InideOUt for eader from eera

location around the south and Eat

of England who want to ee the bigger

picture.

Pu, ere are orer programme for oe

i peifi need:

Profie i a o day riefing for eader

o an a fa-ra, eind-e-ene

ie of e pae ere ey operae

Poer Dynami i a aenging one-

day een for oe o need o no

more aou o poer or a a naiona

or European ee, and o o infuene i.

AccA a eamed up i common Purpoe o

offer memer a 10% dioun on ee unique

eaderip deeopmen programme. ti offeri aid from no uni e end of 2009. to ae

adanage of i offer, peae e-mai aren.

[email protected]

to find ou more aou common Purpoe,

your neare programme oaion or e nex

ar dae, ona karen Maey or ii

www.commonpurpose.org.uk .

Autumn 2008 programme forFinancial Services Network

Our lectures for the September to December

period will cover a range of topics and venues

as we work in partnership with our partner

bodies and employers. More details and

booking forms will be made available on the

Financial Services Network website in August.

An outline of the upcoming programme can be

found below.

Wednesday 10 September 18:00 20:00,

Cavendish Conference Centre (NB Please note

different time and venue)

The influence of the Mayor and Lord Mayor

on Londons economy. Speakers - Tim Parker,

the new chief executive and first Deputy Mayor

of London and a representative from the Lord

Mayors Office.

Wednesday 1 October 12:00 14:00, Cinema

2 - Barbican Centre (NB please note different

venue, provided courtesy of the SII)

Inflation the next great meltdown? A panel

discussion following on from the Credit Crunch

debate.

ti deae i eing run in onjunion i

e sII. Panei i inude Jame buan, a

oumni, eading noei and iorian oe

mo reen or i a udy of e ire of

Adam smi and Daid hume in Enigenmen

Edinurg, Capital of the Mind (2003);

brandon Daie, Managing Direor GARP Ri

Aademy, and Marin wof, aoiae edior and

ief eonomi ommenaor of e Financial

Times. cair i e crioper Jone warner.

Tuesday 11 November

Edinburgh Financial Services Lecture

venue and ime tbc

Thursday 20 November 12:00 14:00,

American Express, Victoria (NB please note

different venue)

Background to and implications of the Single

European Payments Agency (SEPA).

A presentation by Dr David Doyle, ACCAs head

of EU Parliamentary Affairs.

ti een i eing oed y our Approed

Empoyer parner Amerian Expre.

Thursday 11 December 08:00 - 10:00

Barclays Canary Wharf (NB please note

different time and venue)

EU update and debate - the implications of the

new regulations on the credit crisis

Pane and preener tbc


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feature

European Financial Services

action planIn June, members werepresented with an updateon a range of EU nancialservices directives. LucyCalderwood reports.

On 24 June Dr David Doyle, ACCAs head

of EU Parliamentary affairs, gave members of

the financial services network an update onthe European Financial Services Action Plan,

a raft of directives designed to increase the

EUs productivity and competitiveness in the

years up to 2005.

te Aion Pan a formuaed in 1999

en e EU ommiion idenified our

a of ompeiiene a a inge mare,

en ompared i e Us. Diergen

ee of ineor proeion, ouped i an

underdeeoped inemen mare a iizen

ee, reued in a dijoined, fragmenary

finania erie mare a a onfuing

o foreign ineor. te aion pan a

emerged a an amiiou programme of 42

eparae ega meaure oering eerying

from aning, euriie, inurane, aouning

andard and audiing praie, i a ie

o reaing a inge finania mare for ee

area y 2005. ti deadine a mied for

ree main reaon:

diergen inerpreaion of direie.

seemingy impe direie, inerpreed

a frameor in Uk a, ere deemed

o require o e eer aderene y ome

juridiion, for exampe e inerpreaion

of e roe of ome and o reguaor in

MiFID

ae impemenaion of direie aro

Europe. some ae agged eind in

impemening oe direie a ere

mo onroeria o a domei audiene

God paing. some ae added eir

on proedure and requiremen,

maing ompiane ime onger and more

ompiaed.

Faed i ee iue, EU commiioner

carie Mcreey ame up i a argey

aaimed ie paper uggeing e fooing

ep:

dynami onoidaion. Addreing e

idey-anoedged gap and

inonienie in ome exiing direie,

for exampe UcIts and ome IFRs

eer reguaion. A fundamena prinipe,

gien e oume of ne reguaion

a ad een deeoped up o i

poin. An eenia par of i a a

a ne direie oud ae o pa

an oigaory eonomi impa e.

Direie a faied, or ae een on

roug eing o e unorae or

ineffeie, ae een dropped

enaned uperiory onergene. ti

aimed o ring ino ine a EU uperiory

and reguaory odie, o enure ey are

In mainland Europe the culture of legislative imperative, as opposed to UKcommon law, required legislation on some important issues

a giing e ame meage. For exampe

e FsA a oniderae anioning

and ineigaory poer, u i i no

e ae in many ae, for exampe

ome of e ney reaed cenra and

Eaern European ounrie

more ompeiion, pariuary in reai

mare. te urren commiion

mandae inude greaer poer for e

Direorae Genera for compeiion,

and i a aready produed an impa

in e form of reaing don arrier in

e eeomm mare. Nex on e i

are arrier in e European aning and

inurane mare

e exerna dimenion and a ro-Aani

approa. te Uk and e ciy of london

doe no operae in a auum, u or

in onjunion i hong kong, Ne Yor

and oer prinipa finania enre;

oeer, e re of Europe doe no

operae in i ay.

Aoug Mcreey a een o gie e

empai o egiaie iniiaie, e reognied

a in mainand Europe e uure of

egiaie imperaie, a oppoed o Uk

ommon a, required egiaion on ome

imporan iue. te Direie on Paymen

Iue (sEPA) i one u piee of egiaion.

ti a inended o amend reguaion

2560/2001, aing a any paymen made


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feature

in Euro mu o e ame a a domei

paymen. te amendmen inuded redi and

dei ard paymen, i mu e proeed

on e ame day a e paymen i made, and

direie opening up ompeiion o a ider

range of paymen erie proider. A par of

e sEPA, onumer proeion for uomer

maing ro-order paymen a een

igened. ti i e exended o dire dei

in a propoa o e umied y Auumn 2008.

directive on cross-border consolidation in the

financial services sectorte European aning yem i a e momen

a ery inuar uure, i deep-rooed

proeionim. wi e commiion doe no

endore oie aeoer per e, i reognie

a aeoer do reae more oie and oer

o for onumer. A a reu, i direie

inrodued a 60-day rue ere enra an

and finania reguaory odie aro Europe

ae ju 60 day o approe ro-order

aning aeoer or merger, improing e

preiou iuaion of ong dran-ou approa.

UCITS

Dr Doye deried UcIts a a or in

progre. In e a o year e commiiona moed oer o arifying e repeie

roe of ome and o ounrie; oeer,

e mo imporan iue i e queion

of a i appen o e managemen

ompany papor. te commiion i een

o ieraie i ape o a a fund manager

in any ounry an dipere i managemen

ompany experie anyere in e EU. ti

i underanday faing reiane from e

o mo imporan managemen ompany

ranaion juridiion, e Repui of Ireand

and luxemourg.

ti iue oud ae een addreed

y UcIts Iv, i carie Mcreey a

deided o idra. UcIts Iv oud ao ae

proided arifiaion on ro-order merger

of fund. A preen a fund manager a o

domiie i fund operaion in e juridiion

ere e i eing oe fund a o a

i paed ono e onumer. UcIts Iv oud

ae arified e poiion on i and remoed

e need o domiie fund ere ey are

od, on e ai of ome ae reguaion.

For exampe, if e FsA approe a fund a

uiae for ae in e Uk, in eory i oud

e aepae o a reguaor in Frane, Finand

or soenia. I i oped a UcIts Iv i

reappear y e end of 2008, arifying a

numer of iue, u prinipay eing ery

ear erm for e noifiaion proe and e

impified propeu.

Solvency II

soeny II repreen a reouionary piee

of egiaion i ree ery imporan

dimenion:

onien auaion of eery inurane

ompanie ae and iaiiie on an

annua ai.

apia requiremen o e aed on

underining ri raer an oume

of uine

reogniion of e imporane of ri

managemen inernay, in running e

uine. A inurane ompanie of a

ize i need o e ae o reognie andmanage a ri a ey are expoed o.

curreny e EU i diuing e noion of e

group uperior in e ome memer ae i.e.

oud e ao e Finni reguaor o ae

reponiiiy for uperiing no ju e Finni

operaion u a ompany operaion in

e oer EU memer ae, inuding e

roe of fixing e apia requiremen of oe

operaion?

te oer iue for onern i a,

aoug penion are exuded from

soeny II rue, ere i a upiion

a one e group uperiory

iue are reoed, penion

may e oered y ee

rue.

The European banking systemis at the moment a very insularculture, with deep-rootedprotectionism. Whilst theCommission does not endorsehostile takeovers per se, itrecognises that takeovers do

create more choice and lowercosts for consumers

action plan (continued)


7/20


feature

MiFID

Requiremen i i e reorded, u ere i

a queion mar oer o a exen inemen

an and o exange oud proide

pre-ranaion ranpareny. I ear a e

o exange i no find i diffiu, a

ey ae een doing i for year, u many

of e maer inemen an in Europe

ae ommened a i i a grea urden

on em - proiding inreaingy deaied

ranaion informaion on a reguar ai o

oa reguaor.

An inereing iue for many a e momen i

a of ird pary ououring, and ere MiFID

a an inereing proiion a if a ompany

ououre ome of i adiory or o a ird

pary, i mu e ae o enure a a ird

pary i equay in ompiane i a MiFID

rue a ime-onuming requiremen.

EU-US financial regulatory dialogue

tere ae een ery poiie deeopmen

ere, inuding a eer underanding of

ea oer reguaory frameor. tere are

o ai ojeie ere o aoid anoer

sarane-Oxey enario, i i errioria

impiaion, and enuring a e ae aroad frameor for reguaory impiaion

en i ome o iue u a edge fund

and priae equiy. For no e Us and e EU

ae e up a ran-Aani eonomi ouni,

i i oo a a range of reguaory iue,

from IFRs/Us GAAP onergene, o e reen

iuing of a ran-Aani euriie reguaory

frameor.

Oer iue o addre inude:

reinurane Us ompanie an urreny

e up in Europe iou oo mu

diffiuy, erea in e Us European

reinurane ompanie need o e up a

eparae uidiary, and ao ae o e

aide a uania apia requiremen

muua reogniion on EU/Us euriie

mare ere i more momenum ere

gien a 80% of e ord apia

mare are aed eeen Europe and

e Us

a of progre on IFRs and Us GAAP. te

Us a aed a Europe need o ign up

fuy o a ape and proiion of IFRs

and no inude any aea. Uni a

appen e Us i no dipene i EU

ompanie o i o i in Ne Yor

aing o repor under o IFRs and Us

GAAP.

in the pipeline

rating agencies in pie of e fa a

raing agenie ad agreed o form a

ounary ode of ondu, i doen eem

o ae ored. Agenie are erefore

eading for reguaory oerig

private equity, ie edge fund, iproay find ief ounariy proiding

more ranpareny on e naure of e

uine. Priae equiy firm i proay

e inuded in e EU apia adequay

requiremen direie

sovereign wealth funds e commiion

reognie e added aue and quaiy of

ee inemen. tey urged ee

fund o or oey i e IMF,

e Us and Europe o ome up i

more ranpareny rue i repe o

eir inemen

crisis contingency plans are i on e

agenda, o ope i e prope of an

affiiae an going u and draggingdon oer payer. we do no ae

a fai-afe arning yem o dea i i,

and progre eem o e o

updating the Lamfalussy process

ere i a need o enure a, one e

egiaion a een approed y e

European commiion, Pariamen and

couni, e memer ae don

add any more god paing o inrodue

furer requiremen and eing

proedure

priorities for the French Presidency -

redi raing agenie i erainy

e on eir agenda, a e a updaing

aouning and auaion rue in e

aning and inurane eor, enouraging

promp and fu dioure of oe y

finania iniuion, and improing e

eary arning yem and deeoping

guideine for rii managemen.

luy caderood

ommuniaion exeuie, AccA Uk

Looking Aheadclearing and settlement in the EU

Mcreey a arned e o exange

in Europe a e aned o ee a ounary

ode of ondu o ununde ome erie

and proide more ranparen and eparae

aouning eeen e ranaion, e

eemen and e earing, and more ro-

order ae. Good progre i eing made on

ununding, u ere i ery o progre on

aouning eparaion and on ae.


8/20


feature

saying no gracefullyHow often do you come under pressure to say yes

when you know you are unlikely to be able to deliver?Tessa Simpson shows how you can say no gracefully.

We all come under pressure to say yesto requests which, even as were saying it,

we know that were unlikely to deliver or

are really annoyed about having to agree to.

The requests may come from your boss, your

peers, your staff, your partneror even your

children.

trying o e effiien a or and aing

perona demand a ome an reu in

you geing pued in eery direion. A a

reu of no aying no you may eome

oerored, mi unreaii deadine, or

eome reed, i oud damage

your repuaion.

wy do e ay ye en e ano ay no? someime i i eaue e fear

appearing unae o ope i e oroad.

we may an o ry o peae oer, or fee

unomforae aying no.

In oday marepae greaer demand

and expeaion are pu upon u, udge are

u and reduion in aff are ommon rend.

so in i amopere o an e ay no

iou reaening our jo euriy?

le imagine i ree in e afernoon and

youre ooing forard o e eening. Youre

going ou o a peia o and i a ar

ju afer 5pm, en you mee your parner for

drin and pre-eare dinner.

Your o rue in and ay: Ie ju ad

a a from e Direor. tey urgeny need e

end-of-mon anayi y omorro unime

inead of e end of e ee. can you ay on

i eening and pu i ogeer, o I an pa

e figure on in e morning?

ti may or may no ome a a reque,

depending on e managemen ye of your

o.

te preure o ay ye may e rong, due o

your onienioune, fear of o you mig

appear no o e puing your eig, or due o

your o aiude if you do.

so o an you defe unreaonae

reque, and manage oer peope

expeaion graefuy?

You don ay ye and you don ay no;

inead you ue a raegy aed ADQ.

sar y acknowledging eir reque. so

ay omeing ie: Youd ie me o ay on

i eening and prepare e end-of-mon

anayi?

ti e e oer peron no a youe

eard a eye aed for.No you disclose omeing aou your

on iuaion i o y i oud e

diffiu for you o agree o eir reque. In i

iuaion you oud ay: onig Im going ou

for a peia dinner and o and I ae o e

a e reauran y 5.15 A youre aying i

your o i reaie y you aen aid ye,

and e or e i egin o in of oer opion.

so eyre in reepie mode en you

offer e fina par of e meage, en you

a a question i offer an aernaie. You

oud ay omeing ie: woud i e Ok for

me o ome in eary omorro and ae e

anayi ready for, ay, 9am?

In mo ae you i find a, if you ae

pied your queion reaiiay, e oer

peron i agree i a youe uggeed.

If no, you go round e proe again uni you

find a ouion youre o appy i.

A deegae on one of my raining

programme praied i enique on day

one of a o day oure. he arried reae

a fe minue ae on e eond morning.


9/20


feature

he ared i u e reaon for eing ae.

On e ay o e oure e a opped y

i manager o, iou aing a i

ommimen ere a day, aed im o

run a o-our ea and afey eion a

morning for ome ne memer of aff.

Jon reaed a i manager ye a

fairy aggreie and if e ried o argue i

orner e a uuay oued don and od o

ge on i i.

ti ime e rememered e ADQ

enique. he aid o i manager o you an

me o run a o our ea and afey eioni morning?

Ye, i o repied.

I am auay on a oure myef oday.

he dioed i informaion.

can I do i omorro morning? e aed.

No, aid i o, i mu e done oday.

Afer a momen oug e ored

roug e ree ep again.

te eion mu e run oday?

Ye, no queion anered i o.

I am on i oure oday and i run i

ree-iry, Jon dioed, en added ho

oud i e if I ran e eion from ree-iry?

we I uppoe a i ae o do!

repied i o.Jon fe immeney empoered afer a

exange a e ad neer efore een ae o

pu i poin aro and aying no a no an

opion.

Anoer exampe reae o a oman I a

oaing. se ored in an audi deparmen

i a under onan preure o deier

imey reu. se a o aff memer

don o off i re and e ad een

od e oudn empoy anyone ee.

One of e proem a a ree

parner in e firm a pu or ino er

deparmen, a aid i a urgen and none

of em onued er on er oroad. wen

Giian ried o expain a ing oudn a

ge done on ime e a od y e parner

o a aing for omeing a eir or

oo prioriy. tere a ao an oer riiim

uggeing a e oudn ope eaue e

ad een inernay promoed and a eing

ompared i e preiou inumen o

ad ored i an addiiona memer of aff,

and no one off i.

Afer diuing e ADQ enique and

praiing i i me, en a ome and i

friend e ried i ou i one of e parner,

Andy.

he aed er o or on an audi a

a on a ig deadine. se reponded, You

an me o or on i audi immediaey.

Anoedging e reque.

Ye, i i reay urgen.

I ae ao een gien a prioriy audi

o ompee for Jame, and Eieen aid e

oud e ringing in or aer oday a a

needed efore e end of e ee. we anompee eerying a one. Giian dioed

er iuaion.

coud you ae a a i Jame and

Eieen and agree eeen youree a or

i e ige prioriy and e me no i

jo o do fir?

Afer expreing urprie and annoyane

Andy ef and ad a oneraion i i

parner. tey agreed prioriie, ad a furer

meeing ere ey agreed ey needed

anoer memer of aff and pu a ne

ruure in pae for prioriiing jo. A afer

one ADQ.

Giian fe o mu more empoered and

a ine moed on o a managemen roeere e i praie i i.

Its a three-part message, easily remembered by ADQ:

A anoedge eir reque, o ey no youe eard

em orrey

D dioe omeing aou your on iuaion, o ey

no y you aen aid ye

Q finay a a queion i ead you oard a

muuay-aepae ouion.

to orro an aderiing ogan from a

reognied DIY ain: You an do i en you

AD and Q i!

tea simpon i a parner in Aquariu

Inernaiona, an Edinurg-aed onuany

deigning and deiering raining oure and

orop. For more informaion ii

.aquariuinernaiona.o.u


10/20


coverstory

Islamic nance a historyIslamic nance is growing exponentially, and accountants

need to understand the principles underlying thispreviously niche market. Dr Natalie Schoon explains.

a little bit of history

te finania indury a ioriay payed an

imporan roe in e eonomy of eery oiey.

ban moiie fund from ineor and appy

em o inemen in rade and uine. te

iory of aning i ong and aried, i e

finania yem a e no i oday direy

deending from Forenine aner of e

14 17 enury. hoeer, een efore

e inenion of money, peope ued o depoiauae u a grain, ae and agriuura

impemen and, a a aer age, preiou

mea u a god for afeeeping i

reigiou empe.

Around e 5 enury bc, e anien

Gree ared o inude inemen in eir

aning operaion. tempe i offered

afe-eeping, u oer eniie ared o offer

finania ranaion inuding oan, depoi,

exange of urreny and aidaion of oin.

Finania erie ere ypiay offered again

e paymen of a fa fee or, for inemen,

again a are of e profi.

te ie of piooper and eoogian

on inere ae aay ranged from an

aoue proiiion o e proiiion of

uuriou or exe inere ony, i a ia

oard e aoue proiiion of any form

of inere. te fir foreign exange onra

in 1156 AD a no ju exeued o faiiae

e exange of one urreny for anoer a

a forard dae, u ao eaue profi from

ime differene in a foreign exange onra

ere no oered y anon a again uury.

In a ime en finania onra ere argey

goerned y criian eief proiiing inere

on e ai a i oud e a in o pay a

more or e an a a en, i a a

major adanage.

Islamic banking

During mediea ime (1,000 1,500 AD),

Midde Eaern rademen oud engage in

finania ranaion on e ai of sariaa,i inidenay a guided y e ame

prinipe a eir European ounerpar a e

ime. te Ara from e Ooman Empire ad

rong rade reaionip i e spani, and

eaied finania yem iou inere

i ored on a profi- and o-aring

ai. tee inrumen aered for e

finaning of rade and oer enerprie.

A e Midde Eaern and Aian region

eame imporan rading parner for

European ompanie u a e Du Ea

India company, European an ared

o eai rane in ee ounrie,

i ypiay ere inere-aed. wi

e inreaingy imporan roe weern

ounrie ared o pay in e ord eonomy,

oneniona finania iniuion eame more

dominan. On a ma ae, redi union and

o-operaie oieie aed on profi- and

o-aring prinipe oninued o exi, u

eir aiiie ere ery mu foued in ma

geograpia area.

Aoug i a no uni e mid

1980 a Iami finane ared o gro


11/20


coverstory

exponeniay, e fir finania

ompany in reen iory aed on

sariaa prinipe a e Mi Gamr

aing proje in Egyp. Mi Gamr

a a o-operaie organiaion in

i e depoior ao ad a rig

o ae ou ma oan for produie

purpoe. In addiion, e proje

araed fund o ine in proje

on a profi-aring ai. In 1971 e

proje a inorporaed in Naer

soia ban. From a andfu of an

in e ae 1970, inuding e Iami

Deeopmen ban and Duai Iami

ban, e Iami aning indury

a gron ignifiany. sine e ae

1990 e indury a een groing

a a rae of 10 15% per year, and i

expeed o eep on groing a i rae

for ome year o ome. te numer of

an offering Iami finania erie

i groing and i no onger imied o

Islamic banks are founded

on the concept of prot-sharing and loss-bearing,which is consistent with theIslamic concept that protis for those who bear risk....Fairness, honesty, avoidanceof hoarding and avoidanceof tort are an integral part ofShariaa law

ma nie an, and arge oneniona

an are offering Iami finane roug

eir Iami windo. hoeer, e aaneee ize of fuy sariaa-aed an on a

onoidaed ai i no een remoey oe

o a of any of e arge oneniona an,

i a an impa on e ranaion ize

ey an exeue on an indiidua ai. large

oneniona an on e onrary ae

e adanage of a ig aane ee and

ruuring apaiiie a are e eyond e

urren poenia of Iami an. In addiion,

e proen ra reord of oneniona an

proide a iger degree of erainy an a

ney eaied Iami an. On e oer

and, Iami an operae ompeey iin

e eia frameor of sariaa and offer i

and experie in ruuring sariaa-ompianinrumen. tu, e o ype of payer

are ompemenary, and y oring oey

ogeer an aiee ig mare peneraion

and or on reaing e fu poenia of e

mare.

principles and prohibitions

lie eery oer ape of Muim ife, Iami

aning i goerned y sariaa and i

inerpreaion (Fiq). togeer, ee proide

e eia frameor ouining e eene

of eonomi e-eing and e deeopmen

of indiidua. ti frameor doe no

peifiay appy o Iami an, u o ife

and uine generay. Fairne, oney,

aoidane of oarding and aoidane of or are

an inegra par of sariaa a, u o are e

proiiion of ria, garar and mayir.

In rief, ee proiiion are defined a

foo:

Riba (or uury) i e predeermined

inere oeed y a ender, i

e ender reeie oer and aoe e

prinipa amoun i a en ou.


12/20


coverstory

Gharar (or unerainy) i defined a o

noingy expoe oneef or one propery

o jeopardy, or e ae of a proae iem

oe exiene or araerii are no

erain. An exampe in e onex

of Iami finane i adiing a uomer

o uy are in a ompany a i e

uje of a aeoer id, on e ground

a e are prie i iey o inreae.

Garar doe no appy o uine ri

u a ineing in a ompany.

Maysir (or peuaion) i an een in i

ere i a poiiiy of oa o o one

pary. Mayir a eemen of garar, uno eery garar i mayir.

In e onex of e sariaa frameor,

money i een a noing more an a mean

o faiiae rade (raer an a ore of

aue). conequeny, in ominaion i e

aforemenioned proiiion, i i no poie

for Iami an o proide finaning in a

imiar faion o oneniona an. Inead,

oer ruure are appied in i e an

ofen pay a mu arger roe in e finaning

ruure and eome a parner in e proje

o e finaned raer an ju a proider of

money.

A defined in e aouning, audiingand goernane andard for Iami finania

iniuion, Iami an are founded on e

onep of profi-aring and o-earing,

i i onien i e Iami onep

a profi i for oe o ear ri. Profi

are diriued aording o a raio defined in

e onra, and any oe are diriued

equay depending on e are in e proje a

pary od. te an or finanier parner i

e ompany or indiidua eeing finaning;

e an erefore od par of e ie o e

underying ae a e, depending on i

degree of onerip.

Islamic financial products

Iami finania produ or on e ai

a e an and e uomer are e

ri of inemen on agreed erm. Profi

are diriued aed on negoiaed erm;

ri i diriued aed on e are of e

onerip. In addiion, Iami finania

produ ypiay ae an underying ae

or enerprie a require finaning. te

remainder of i arie derie e mo

ued inrumen in Iami finane.

partnership contracts

te Mudaraa and Muaraa onra are

parnerip arrangemen in i eier one

(Mudaraa) or more parner (Muaraa)

proide apia and/or i and experie o a

sariaa-ompian proje or uine. Any

profi a i generaed i diriued eeen

e parner aed on a raio a i pre-

agreed in e onra and refe a reurn on

apia, u ao e effor pu in o managing

e proje or uine. hoeer, oe are

diriued eeen e parner on e ai

of e raio of e apia proided. ti impie

a in a Mudaraa ere ony one paryproide e apia, e o i 100% orne

y e apia proider (Ra a Ma), une e

managing pary a een negigen in i

ae e ear a e o.

Mudaraa and Muaraa ranaion are

ypiay appied o priae equiy inemen

or o ae managemen-ype inrumen. In

e aer, e i of e an i eir aiiy

o ee ou inemen opporuniie and o

moiie fund. In reai finane Muaraa

onra are ofen appied o proide ome

purae pan.

cost plus financing

Muraaa onra are onra for edeferred ae of good a o pu an agreed

profi mar-up. Muraaa a a ariey of

appiaion and i ofen ued a a finaning

arrangemen, for inane for reeiae

and oring apia finaning. A peia form

of Muraaa i e commodiy Muraaa,

in i e underying ae i a pyia

ommodiy (ofen an lME ae mea).

commodiy Muraaa i mainy ued for iner-

an iquidiy managemen.

leasing

Ijara onra in Iami finane are argey

omparae i oneniona eaing onra,

in i e eee pay periodia rena

paymen o e eor in reurn for e ue

of an ae. bo operaiona eae (Ijara) and

finane eae (Ijara a Iqina or eae ending

in onerip) are permiie.

investment certificate or bond

suu i a ond-ype inrumen, u unie a

oneniona ond, e suu oder ao on

a proporiona par of e underying ae.

te suu an e aed on ea of e aoe

menioned inrumen, i e suu a Ijara

eing mo appied. te ai ruure inoe

an sPv a aquire e ae or enerprie on

eaf of e suu oder.

in brief

ti iory of finane and Iami finane i

a o onger an e a 35 year or o. I

i aed on an eia frameor a doe

no ony appea o Muim. te underying

eonomi and uine prinipe are araie

o Muim and non-Muim aie.

Aoug inere and gaming are no

permied, ere i no a anning eareaion - e apia i a faor of produion

and ene i i reognied a ere i an

aoiaed o. hoeer, purey maing

money i money iou any idenifiae

underying inemen (eer i e an ae

or an enerprie) i froned upon. terefore

e produ ruure in Iami finane a

ae an underying ae and are aed on

ri- and reard-aring eeen a parie

inoed. te Iami finane mare i groing

exponeniay, and ne payer are oninuouy

enering e mare. Aoug i i no iey o

repae oneniona finaning, i i erainy

ere o ay.

Dr Naaie soon

Naaie joined e ban of london and e

Midde Ea in Apri 2007 a head of Produ

Managemen.

te ie repreened in i arie are oe of e auor

and do no neeariy repreen oe of blME.

Islamic nance (continued)

sII offer e Iami Finane Quaifiaion

(IFQ), proiding andidae i an

inernaiona enmar quaifiaion

and a praia underanding of Iami

finane, inuding suu, taafu,

Mudaraa, Muaraa and Muraaa.

For furer informaion aou e IFQ or

i oroo, ii www.sii.org.uk.

AccA and sII ae a parnerip

agreemen, enaing AccA o offer sII

exam and quaifiaion o memer

around e ord and sII o offer

adanageou erm for AccA memer

and affiiae o eome sII memer.

For more informaion on sII peae ii

e eie aoe.


13/20


forthcoming consultation responsesAn imporan par of AccA iniuiona or

i o onriue o e deae on enia

iue affeing uine and aounany

and o repreen e inere of i memer

in reaion o e egiaion and profeiona

andard ey ae o ompy i in

eir or. A e a oring direy i

goernmen deparmen and andard-eing

odie, AccA ampaign, ere appropriae, in

parnerip i many differen organiaion.

we ao pariipae in e or of e major

profeiona and uine organiaion o

in e Uk and inernaionay. we aue and

enourage repone o ee doumen

from our memer. time pen oring on

ee an earn you cPD poin and proide

File Name Document Name Consulting Body Response Deadline

tEch-cDR-787 Independene Audi and Reie Engagemen IEsbA 31.08.2008

tEch-cDR-773 Finania Inrumen i caraerii of Equiy IAsb 05.09.2008

tEch-cDR-780 Reduing compexiy in Reporing Finania Inrumen IAsb 19.09.2008

tEch-cDR-783 Preiminary vie on Amendmen o IAs 19 Empoyee benefi IAsb 26.09.2008

tEch-cDR-793 Preiminary vie on an Improed conepua Frameor for Finania Reporing IAsb 29.09.2008

tEch-cDR-794 An Improed conepua Frameor for Finania Reporing caper 1 and 2 IAsb 29.09.2008

te fu ex of enia poiy umiion made y AccA, a i of onuaion paper urreny eing reieed, and an iniaion o AccA memer o

onriue ommen for onideraion are aaiae from www.accaglobal.com/publicinterest/activities/policy_papers

ACCAs Technical Policy and Research

department has begun producing technical

briefing papers designed to summarise

significant developments in technical

matters.

te urren paper fou on onuaion

doumen aaiae for ommen. Fuure

deeopmen mig ee AccA proiding

ommenary on ignifian enia maer.curren paper are ied eo. to ie

ee ii .aagoa.om/puiinere/

aiiie/irary/finania_reporing/riefing

reducing complexity in reporting

financial instruments a ummary of

e Inernaiona Aouning sandard

technical brieng papersboard (IAsb) diuion paper on

reduing ompexiy in reporing finania

inrumen (puied in Mar 2008)

equity and liabilities a ummary of e

IAsb diuion paper on inrumen

i araerii of equiy i a

puied in Mar 2008. I ao riefy

reie e diuion paper diinguiing

eeen iaiiie and equiy (puiedy e European Finania Reporing

Adiory Group (EFRAG) in January 2008)

preliminary views on amendments to

IAS 19 Employee Benefits a ummary of

IAsb diuion paper on preiminary

ie on amendmen o IAs19 Empoyee

benefi (puied in Mar 2008)

the financial reporting of pensions a

ummary of e diuion paper on e

finania reporing of penion (puied

y e European Finania Reporing

Adiory Group (EFRAG) in January 2008).

te puiaion of ee paper ep o enure

a AccA i dieminaing reean eniainformaion o i memer.

If you or for an sME you mig ao find

e ide range of enia informaion and

guidane proided yACCA UKfor our memer

in e sMP mare of inere. vii www.

accaglobal.com/advisory o find ou more.

a ay of geing inoed i e or of

e aoiaion and upporing our goa of

enaning e infuene and repuaion of e

profeion. Peae do ae e ime o oo a

e i of foroming onuaion/repone

and gie your ommen and feeda. Deai

an e found eo.

research and consultation update


14/20


the credit crunch your viewsThe Financial Services Network recentlyhosted a panel debate at the LSE entitled

Climbing Out of the Credit Crunch. This

article summarises the ow of discussionand key points raised. Please note: all participantswere speaking in a personal capacity and do not necessarily

represent the views of ACCA.

Panellists

Profeor sudipo baaarya

London School of Economics

Aan craf - Consultant

brandon Daie - GARP

Profeor Miae Mainei Z/Yen Group

Pau Moxey head of corporate

governance and risk, ACCA (chairing)

the nature of the crisis

cenraiaion of e finania yem and an

ere eieed o e groing exponeniay and

goay o e poin ere ey ere diffiu

o manage i a ey o e rii. te

rii ad on e fundamena fraiie of e

finania yem. compaeny, oer-reianeon uge It yem and a o-infaionary

enironmen reaing a ear for yied eped

o reae e rii y enouraging neer and

riier produ. te roe of edge fund a

ao menioned.

te oe repored y 20 an exeeded

primary defau on u prime y eera ime

o i a diingenuou o ame e rii on

u prime orroer.

I a poined ou a an are aiay

iiquid if eeryone oo eir money ou

a an oud go u, o i i neeary

o uppor e aning yem ere ri

i yemi. tere a een ie onro

oer iquidiy ae prie ae inreaed

exponeniay i ie onro from e an.

A fundamena reie of reguaion i needed

a ere i a fundamena proem i o e

mare or.

macro-regulation

I a eieed e rii ared in e Us. te

federa auoriie required depoi in raed

inrumen reaing an arirage opporuniy.

Iniuion, effeiey reried o AAA,

eame deperae o ouperform enmar

o aned anying raed i iger yied and

oer paid for oe produ. tere are ony o

or ree raing agenie, ey are a reguaed

oigopoy. Reguaion mae i ery diffiu o

eome a raing ageny in e Us. ban an

od raed inrumen off aane ee i

mae em ery araie i ao iger

eerage and profi; proiding an aoid

e oaiona ery ad year i affe

e mare eery 20 year or o, ey are in

oer. so effeiey, e reguaory yem

deigned o proe u auay inreaed our

ri y onenraing i.

A ey proem a a goa an

needed goa reguaion u i a impoie

o reguae e oe yem inernaionay.

te an ere no effeiey oo ig o

manage. ti i y peaer and deegae

argued a e ony rea aner a

deenraie, i.e. o ae more, maer an

i oud e eaier o reguae. Narro

an, imper o rae, ere aed for.

micro-regulation

Again, opinion differed greay on a a

needed. tey ranged from inreaed reguaion

and paing up preen defe; o inroduing

differen or of reguaion; and remoa

of reguaion aogeer on ome area u

igening in oer. A diinion in approa

a needed eeen onumer/reai and

inemen aning, refeing eir radiay

differen naure. Foued reguaion oudonenrae on depoior proeion, money

ranmiion erie and money uppy.

Miro managemen i no e ouion.

Quie, ougfu fexiiiy a needed; a good

exampe a e reue en priaiaion of

Fren an, aring i credi lyonnai.

I a argued a reguaor eemed

onfued eeen onumer proeion and

aning uperiion on e one and, and

yemi ri and indiidua an faiure on

e oer. te Finania serie Auoriy

primary roe a one of onumer proeion

u oud onumer inere poiy e

proeed if a an a aoed o fai? wa

a unarguae a a e Uk riparie

reguaory arrangemen oud no or a

ong a no one a in arge. te faiure of

Norern Ro oud no ae aued major

yemi proem u onumer onfidene

ad o e mainained.

bank failure

I i imporan o diingui a an in roue

due o a o from one i oo oo mu

ri. No oer indury a i proeion

feature

A lm of the debate, courtesy of SII, is available on ACCA TV at tv.accaglobal.com


15/20


feature

u indiidua depoior need proeion.

we oud proe onumer u e e ig

peope ur ea oer. we need o ao

faiure, epeiay of inemen an, u

proe e fe yemi (earing) an. Many

an ae eome oo ig o manage. If e

ad more u maer an you oud ao

ome o fai iou damage.

accounting, IFRS and Basel

bae I and II ere oo impii. tey aoed

an o rae emee and reaed a arge

and unenae roe for raing agenie. I a

uggeed a bae II and IFRs ae noored e ogeer. some argued a ere

i a need o diore an and eir apia

requiremen (exaeraed y bae II) from

fair aue aouning under IFRs, i ad

proed orae in good ime, u no uied

o a donurn ere ere a no mare o

mar o.

IFRs, ome aid, a made aoun

50% onger and 50% e underandae.

te regime ad muddied e aer and

ad inreaed uneraiiy and unerainy,

i aounan aing inreaing diffiuy

deiding a ing are or.

Prie refeing aue i no aurae

aoug defau rae of 16% and 80%

reoery ere iey, prie impy 100%

defau and 50% reoery and a i e figure

i i fo roug e aoun. ti i a

fundamena proem of fair aue aouning.

Peope i no e a ee prie. Aoun

are no drien y non a iem i.e. ariou

fair aue adjumen. ban ad o raie

more apia u en rie-a our, a

ey i, an i e oer-apiaied. Mar

o mare, omined i o inere rae,

A key problem was that global banks needed global regulation but it wasimpossible to regulate the whole system internationally. The banks werenow effectively too big to manage

peny of iquidiy and oer-apiaiaion, a a

reipe for infaion.

banking

Noing a Mkiney Repor on aning i

year i aid profi per empoyee in an

are 26 ime iger an e aerage of a

eor, i a uggeed a aning aoer-paid peope o do no run organiaion

ery e. weanee in an yem mean

ey may ae ie ue o od a produ

or ere i ame from. Arguay aning oe

i profiaiiy o firy a a of ompeiion

ere are rong arrier o enry; eondy

aymmery of informaion exempified y

enmaring praie, ofing (e praie y

i a roer agree o pay for e uppy of

erie from a ird pary o a fund manager

in reurn for an agreed oume of uine

a an agreed ommiion rae), fron running

and reriion on inemen; and ay

o exernaiie u a e urren enra

uppor propping up e yem. te yem

i eeniay unompeiie and reguaion a

no eped.

Anoer peaer uggeed a an do

no ae a repuaion for good managemen.

baner no onger reeie a genera aning

raining, ey are no a peiai.

Iniuiona ineor oud demand more

ranpareny and e more arefu en ey

are offered appareny o-ri ig-reurn

produ. tere are oo fe NED aenging

exeuie managemen and oo fe o reay

underand a i going on. Perap e

need a o-ier non-exe yem, i exper

peope ae o deoe day per ee, and eo

a e radiiona non-exper non-exeuie

direor o repreen ommuniy inere.

key questionste deae igiged ee ey queion i

o e anered:

ho an aning uomer e onfiden

ere are no idden ri in a ey are

uying, orroing or ending?

ho an, or een oud, areoder

od an more o aoun?

ho an aounan improe finania

reporing o mae repor more

ompreenie and informaie,

pariuary i regard o auaion

and ri?

ho an reguaor enure a

onumer are proeed iou

uninended onequene?

If youd ie o ommen on e aoe arie or

proide your opinion on e oing queion,

peae rie o Arid loeae a e addre/

emai addre gien on e inide oer.

Noe y Pau Moxey head of corporae

Goernane and Ri Managemen, AccA,

and Ian we head of corporae

communiaion, AccA


16/20


feature

Abundant learningopportunities which cancontribute towards yourCPD are right in front ofyour nose. Calum Robsonlooks at work-basedlearning activities.

CPD activity undertaken forACCA Realise

should be relevant to your job and/or your

career aspirations. That means a host of

work-based learning is applicable its likely

that your employer or your work environment

is putting learning opportunities your way

without your fully realising it. While many

members find external courses useful, theres

no reason why CPD should demand extra time

or financial commitment.

I quie iey a youre aready

underaing aiiy a oud oun oard

your cPD requiremen. toe fooing e

empoyer roue o cPD, for exampe, i

aready no i a e empoyer

roue peifiay reognie earning

in e orpae. If you are

fooing e uni roue, y

fouing on earning a or,

you an eaiy mee e

cPD requiremen and

enjoy a more oniou,

profiae earning

enironmen a or

ino e argain.

CPD makingthe most

of your95 time

learning back to basicsbeing oaed or igning up for an onine

oure are oiou oie for or-aed

earning. bu onider e fooing aernaie:

1. reading

Magazine and neeer and eir onine

erion an add riy o your noedge.

bu don ju ae adanage of enia

updae aaiae inaccounting & business.

trade journa for your indury eor an

ao proide inauae ineigene o ep

you underand organiaiona aenge and

in more aeray aou o finane an

onriue.

2. consulting colleaguesI may eem o ome an uniey oure of

cPD u ere no reaon y you an gain

earning roug onuing oeague. tin

aou e numer of oaion youe earned

omeing from a engy a i your o

or a riefing from a oeague. keep a reord of

en you ae earned omeing ignifian

from u a diuion, noing e ime you pu

aide i your oeague, o ey are, a

you earned and o you appy your aquired

noedge.

3. internet research

wo ne a Googe oud exend i goa

rea inoACCA Realise? we, i aready doe

for e many memer o ondu reearexerie for or purpoe. Of oure,

you may ae your on ear engine of

oie u e poin i a oe oune

oaion ere you urn o e inerne o dig

up informaion for a proje or prepare for a

meeing may oniue egiimae deeopmen

aiiy.

4. watching and learning from experienced

presenters

Preenaion i are an inreaingy eenia

eemen of e modern finane profeiona

porfoio of i, and one i empoyer

are inreaingy ooing for a i one of e

differeniaor eeen a ompeen eam

memer and a rue profeiona. by aending

preenaion made y oer, you an pi up

inauae enique and idea o adap for

youref.

5. networking events

Reay effeie neoring een are aou

more an impy oring a room. Exanging

idea and experiene i oer in imiar


17/20


feature

roe (and een oe ore no) an epyou deeop profeionay. spend ime a e

eginning of e year reearing reean

een, and o e ime in your diary. Don

forge o ru up on your ef-preenaion and

ommuniaion i a e efore you go.

6. networking sites

tere are oune neoring eie and

onine aroom for uinee. Empoyer

ofen enourage ey peope o ue ee

ie for a o of reaon u a o ep

penerae ne mare or mae e e ue

of ne enoogy. If i oud enefi you or

your empoyer, og on, ar maing irua

ona and uid reguar ime in for aquiring

noedge.

7. shadowing colleagues/predecessors

taing on ne reponiiiie doen aay

enai forma raining i ofen don o u

o a e rig peope e rig queion. If

youe een gien a ne duy, pend quaiy

ime i e peron youre aing oer from

(if eyre i around) or an experiened

oeague. tere impy no earning ure

i i going o e more uefu o you an

one i aiey ep you o fi ino a ne

organiaion or ae on ne reponiiiie.

8. sitting on working groups and committees

vouneering (or eing deegaed) o i on

ommiee for peia proje an proideegiimae deeopmen aiiy. Epeiay

ere youre oring aongide oeague

from oer funion (or uppier or ien),

and ae o underand eir roe in a proe

ain or ae in an ouome, you mig eaiy

e aimiaing ne informaion a you go

aong. For oe o are more experiened,

or appoined o e group a e exper, you

mig in you are merey ere o impar

informaion u in fa i a grea opporuniy o

enane a ariey of of i u a airing

and faiiaing meeing, deaing i group

eaiour, eeping e group foued and

aieing an end reu. tee are ranferae

i: you an ae em i you and ueem rougou your areer.

the end justifying the means

te eer range of opion open o you

demonrae ju o generou and fexie

ACCA Realise i and o raigforard

i oud e o inorporae ome of ee

earning aiiie ino your cPD pan. If youre

i no ure, urn e a around. conidere fooing exampe of deired ouome

a mig require one of e aoe earning

aiiie:

1. to produce manuals or set standards

reaing imporan proedure a oeague

an eaiy underand and foo may fa o

e finane eam. ho i you aquire e

aground noedge you need for a faiafe

doumen?

2. to prepare for coaching oaing a more

junior oeague or peer may require you o

ru up on your on i in a pariuar a,

or indeed in oaing enique emee.

ho?

3. to prepare for a presentation if

ommanding an audiene doen ome

nauray for you, mae e mo of

opporuniie o oere oe for om i

doe, in aion. If you an eape e offie,

a onine opion are open?

4. to stay up-to-date with market trends or

technical requirements eeping area

of your indury eor or giing operaiona

manager onfidene a you no your uff

enai an eemen of reguar reading. wa

ee, oug?

5. to acquire knowledge of non-finance

functions ranferring ino anoer area of e

uine; oring i oeague from oer

deparmen; expanding reponiiiie i

promoion wo oud you earn from? I

ere inerna informaion you oud ae o

ep deeop your noedge?

6. to acquire soft skills oday aounan

need o do more an ju adding up

auae managemen and ommuniaion i

are eenia. wo oud you earn from? wa

een oud you juify aending? wa oud

you read?

7. to improve methodology eery organiaion

enefi from improemen in yem and

proee. Proje managemen i may e

in order. Do you ae em? ho are you going

o ge em?

8. to enhance controls inerna audi and

ri managemen are op prioriie for oday

finane eader. conro in pae may e

inadequae or ou-of-dae. ho i you equip

youref o mae em eer?

backing it all upOne youe panned your cPD and oug

aou e differen earning aiiie you

i underae, en e nex ep for oe

fooing e uni roue i o ar ining

aou eer your panned aiiy i erifiae

or no. verifiae cPD in a aou e

erifiae. tere are ree equay imporan

rieria for erifiae cPD:

e earning aiiy mu e reean o

your roe

you need o e ae o expain o you an

appy e earning

you need o e ae o o ome ind of

eidene or orrooraion a e earning

oo pae.

te earning aiiy exampe ere o many

earning aiiie for i a erifiae i

no on offer. Don e i approa imi your

opporuniie; e a ie more reaie and

in aou orrooraion from oeague, or

your earning oupu a eidene. Eidene a

oud oun mig inude:

repor, reie and propoa of

reommendaion

proedura manua or onro

noe made prior o, during or afer earning

preenaion ide and/or andou

ona deai of oeague o an

orroorae aiman inoie from e earning proider or

exper

e-mai onfirming e earning eion

noe from your aendar or ouoo diary

uppored y a oeague onfirmaion.

what next?

If you ad aumed a meeing AccA cPD

requiremen required our of forma raining

and ox-iing gaore, opefuy i arie a

made you in again.

wi a ie dediaed ime, you oud ae

a ruured, fexie cPD pan in pae. You

may e urpried y o mu aing a pan in

pae moiae you in fa, many memer

o approa cPD i ay repor a a

ey end up doing far more an e required

minimum. ho peaing oud a e?

caum Roon i a freeane journai.


18/20


CORPORATE ACCOUNTANTSUPDATING PROGRAMME

MANAGEMENT ACCOUNTING, FINANCIAl

REPORTING AND TAxATION

Cardiff 21 23 October

CORPORATE ACCOUNTANTSCPD CONFERENCES

CONFERENCE B

London 24 September

CONFERENCE C

Portsmouth 2 October

CONFERENCE B

Birmingham 9 October

IN DEPTH COURSES

BUSINESS AlIGNMENT

5 September

BUSINESS PERFORMANCE TURNAROUND

8 September

THE EvOlvING FINANCE FUNCTION

8 September

ACCOUNTING IN THE US

11 September

UNIFIED PERFORMANCE MEASUREMENT

12 September

COURSE lISTING SEPTEMBER/OCTOBER 2008

Professional Courses

THE ACCOUNTANT AS STRATEGIC ADvISOR

AND INFlUENCER15 September

FRAUD UPDATE: IDENTIFyING, PREvENTING

AND MANAGING RISk

15 September

THE STRATEGIC MANAGEMENT

ACCOUNTANT

19 September

ACCOUNTING IN GERMANy AND FRANCE

22 September

ANTI-MONEy lAUNDERING AN ESSENTIAl

UPDATE

22 September

INTERNATIONAl DIFFERENCES IN

ACCOUNTING: Uk/IFRS/US COMPARISONS26 September

INTERNATIONAl CORPORATE TREASURy

MANAGEMENT

29 September

PERSONAl POwER AND POSITIvE POlITICAl

INFlUENCE

29 September

COMPANy lAw UPDATE

30 September

Profeiona coure proide a ide ariey of een inuding in-dep oure, corporae Aounan UpdaingProgramme and cPD onferene, perona deeopmen raining and reidenia updae. A e een ied ae paein london une oerie peified.

For furer informaion and o oo, peae ona e Profeiona coure team on 020 7059 5910 or emai [email protected]

vAT THE ESSENTIAlS

30 September

CONFERENCES

COMPANIES ACT CONFERENCE

15 October

AUTUMN UPDATE FOR ACCOUNTANTS,

lINCOlNSHIRE

23 25 October


19/20


Jim Beveridge FccA (cair)

[email protected]

features

ACCA UK Financial Services

Network Panel

Adrian Berendt FccA (vie cair)

[email protected]

ACCA Ireland Financial

Services Network PanelNiall Duggan FccA

ban of soand Ireand ld

[email protected]

Denis Byard

Merer hR conuing

[email protected]

Peter Carroll

bDO simpon Xaier

[email protected]

Orla Collins FccAban of Ireand Priae baning ld

[email protected]

Rory Collins

PFPc truee & cuodia serie ld

[email protected]

Kieran J. Corcoran

corporae Mare, Uer ban

[email protected]

Christopher Forster FccA

herme Penion Managemen ld (london)

(Repreenaie of couni)

[email protected]

Andrew Guiney

IFsRA, PO box 9138

[email protected]

Paul Kehoe FccA

Aied Iri ban p

[email protected]

Alan Maher FccA

ING baring (Duin)

[email protected]

Vincent Mulvey FccA

ban of Ireand head [email protected]

Fergal OMongain

Deage landen Ireand

[email protected]

Christopher Forster FccA

(Repreenaie of couni)

herme Penion Managemen

[email protected]

David Gordon FccA

Gorin ld

[email protected]

Ketan Jashapara FccA

hungarian Inernaiona Finane ld

[email protected]

Ian Kinman

PRG suz

[email protected]

Vincent Mulligan

baray

[email protected]

Anthony Osijo FccA

[email protected]

James Pritchardloyd tsb

[email protected]

David Rawlings FccA

Reinurane Group of Ameria

[email protected]

LR:

Jame Priard,

Jim beeridge,

Adrian berend,

Daid Raing,

vinen Muigan


20/20

Documents

Common Purpose Rory Collins