Description of Finnish investment adviser exams

1. Investment Services
Examinations in Finland
10.5.2015

2. Some
facts
and
recent
developments
• Launched
2000
• Two-­‐level
exams:
– General
securi=es
examina=on
– Investment
adviser
• Over
10
000
persons
passed
exams
• Authoriza=on
of
General
securi=es
examina=on
(APV1)
from
2011
• Authoriza=on
of
Investment
adviser
examina=on
(APV2)
from
2014
• Ac=ve
steering
group
in
Federa=on
of
Finnish
Financial
Services
• Strong
surge
in
exam
par=cipa=on
volumes
aJer
exam
authoriza=on
• No
legal
requirements
to
hold
authorized
examina=on

3. Objec=ves
of
the
examina=on
framework
Maintain
and
increase
investor
confidence
in
markets
and
market
par=cipants
Secure
investment
adviser
competence
in
Finland
Recruiment
Comply
with
interna=onal
standards
Strenghten
inves=ng
culture
and
tradi=ons

4. General Securities
Examination, APV1
Investment Advisor
Examination, APV2
Education for 1st
examination
Practice and
education for the
2nd examination
Practice and further
education
Two-phase education
framework

5. General Securities Examination
(APV1)
• General
Securi=es
Examina=on
is
highly
respected
and
acknowledged
by
investment
services
firms
in
Finland
as
a
cer&ficate
of
required
professional
skills
needed
in
provision
of
investment
services.
• Examina=on
is
targeted
for:
– all
employees
responsible
for
client
service
in
investment
services
firms,
banks
and
insurance
companies
– for
those
who
want
to
build
comprehensive
view
of
opera=on
of
financial
markets,
financial
services
and
products.
5

6. APV1
authoriza=on
• From
1.1.2011
• Transi=on
period:
excep=ons
allowed
for
experienced
professionals
• Not
a
license
but
authorized
examina=ons
by
the
Federa=on
of
Financial
Services
in
Finland
– Member
companies
commiXed
to
examin=on
• Aim
to
upgrade
or
maintain
exper=se
with
update
educa=on

7. Investment Advisor
Examination (APV2)
• Authorized
from
1.1.2014
• The
objec=ve
of
Investment
Advisor
Examina=on
is
to
deepen
and
broaden
the
knowledge
acquired
in
the
General
Securi=es
Examina=on.
• General
Securi=es
Examina=on
has
to
be
passed
by
the
examinee.
• Targeted
for
those
who
are
responsible
for
demanding
client
service
such
as:
– investment
advice
– asset
management
– insurance.
7

8. Main themes in examinations
• Economics and financial system structure
• Corporate financial management
• Investing
– Financial instruments and investments
– Mutual funds and asset management
– Insurance
• Regulation of financial services provision
• Investment taxation and basics of investor
regulation
8

9. Examination structures
General
Securites
Examina&on
• 30 yes/no questions
• 10 choice questions
• 5 short ”essays”
• Max points 100p
Investment
Advisor
Examina&on
• 50 yes/no questions
• 3 short open extra
questions
• Max points 100p (103)
• Correct answer + 2p
• Incorrect -1p
• Empty 0p
• Minumum 40/100
questions must be
answered
9

10. Organization to operate
Examinations
• Framework
development
• Content details
• Examination
practicalities
• Other practical
operation
• Content
development
• Framework
development
• Visibility
10
APV-­‐tutkinnot
Oy
+