At a glance

The Chambre des salariés is an organization registered on the list published on the CSSF website to deliver external professional training relating to the ESMA Guidelines for the assessment of knowledge and competence.

DURATION 5 two days modules (12 heures per module)
TIME For seminars: click HERE
For In-house trainings: following your request
LOCATION In-house trainings: in your premises
or
Seminars:
Luxembourg Lifelong Learning Centre (LLLC)
2-4 rue Pierre Hentges
L-1726 Luxembourg
LANGUAGE(S) English or French
ASSESSMENT A test for validating the knowledge is proposed for each module
CERTIFICATION Certificate of participation and of achievement per module, or for the complete programme where applicable
ADMISSION REQUIREMENTS None
REGISTRATION FEES For regular seminar: click HERE
For In-house training: please contact us for a quote

Objectives

This training aims to acquire the knowledge and competence related to the criteria described in the CSSF circular 17/665 with regards to the ESMA Guidelines for the assessment of knowledge and competence. The professionals shall comply with this circular, since 3 January 2018.

At the end of this training, the participants will be able to demonstrate that they possess the necessary knowledge and competence to fulfill their obligations under Articles 24 and 25 of MiFID II.

Target audience and admission requirements

Target audience

The persons concerned by this training programme are people giving investment advice and/or providing information on financial instruments, investment services or, ancillary services to clients on behalf of a professional, or for their own account, under the prudential supervision of the CSSF.

Admission requirements

The training is open to all interested persons.

Programme and organisation

Organisation

Our complete training programme is offered in 5 modules. It is possible to register for one or more modules, or for the complete programme. The training is also offered internally, in our customers’ premises, and adapted to their specific needs.

Duration of each module: 12 hours (2 days).

Our prices include the material in the language of the training, the test and the certificate.

Programme

Progressive and modular approach:

Module I – General principles of financial markets
Module II – Portfolio management / financial instruments
Module III – Investment products
Module IV – Risk & return
Module V – Client relationship, compliance, AML

5 two days modules, 60 effective hours of training. All CSSF 17/665 circular points are covered.

For information, please see the CSSF 17/665 circular points to be covered in the list hereafter.

C* = people giving investment advice.
I*  = people providing information on investment products.

Module I – General principles of financial markets
No prerequisites
Circular points : C*5, C*6, I*4, I*5
1. Economy
  • Macroeconomics: theories, definitions, concepts
  • Economic environment and globalization
  • Financial information(s): understanding, interpretation
2. Events, indicators, impacts
  • The main indicators (GDP, CPI, PMI…): Typology, characteristics, interpretation
  • Interdependence of economic cycles and financial markets
  • Crises, conflicts, etc…
3. Financial markets
  • Typology of financial markets
  • Interest rates: creation, evolution, influence…
  • Equity markets: capitalization, sectors, cyclical stocks…
4. Evolutions, psychology, analyzes
  • Market efficiency. Sensitivity (beta, duration…)
  • Psychology of the markets
  • Analyzes: fundamental, technical, chartist…

 

 

Module II – Portfolio management / financial instruments
Prerequisites : Module I or equivalent knowledge
Circular points : C*10, C*11, C*12, I*9, I*10
1. Financial instruments: characteristics and valuation
  • Equities: specificities, quotation, indicators…
  • Bonds: typology, rates, ratings…
  • Derivatives: typology, pricing, uses…
  • Structured products: definition, examples…
  • Investment funds: typology, specificities…
2. Markets and operations: introduction
  • Stock exchanges and regulated markets
  • Marketplaces and over-the-counter market
  • Operations: from the customer’s instruction to the posting
3. Portfolio management
  • Theory and Reality(ies)
  • Portfolio management strategies: active management, passive management, management styles, tactics and other methods
  • Diversification
4. Tools and limitations of portfolio management
  • Objectives and constraints
  • Communication with the customer
  • Comparisons and their limits. Performance, indices, risk

 

Module III – Investment products
Prerequisites: Module I or equivalent knowledge
Circular points : C*1, C*2, C*4, C*9, C*10, I*1, I*2, I*8. I*9
1. Investment products
  • Characteristics of the products offered
  • Elements carrying risk(s)
  • Tax issues and their impacts
2. Cost structures
  • Costs, fees and taxes related to products
  • Costs, fees and taxes elated to service delivery
  • Transparency of costs and reporting obligations
3. Documentation of investment products
  • Financial information and prospectuses
  • KIIDS, PRIIPS…
  • Analyzing and understanding available information
4. Investment products and clients
  • Adequacy of investment products: client knowledge vs. knowledge of the client
  • Market access: structures, risks, constraints
  • Costs: details, limits, decisions

 

Module IV – Risk & return
Prerequisites : Module II, III or equivalent knowledge
Circular points : C*1, C*7, I*1, I*6
1. Return
  • Return influencing elements
  • Return calculation: methods, differences, comparison
  • Return analysis: decomposition, cross effects
2. Communication of return and performance
  • Comparison of return: benchmarks, indicators…
  • Return history(ies) and forecast
  • Performance, return, volatility…
3. Measurement of risk
  • Elements of risk. Definitions. Analysis
  • Typology of risks. Mitigation methodologies
  • Risk calculation: methods, comparisons, limits
4. Risk and customers
  • Risk appetite and investment horizon
  • Risk elements in investment products
  • Risk communication, indicators

 

Module V – Client relationships, compliance, AML
No prerequisites
Circular points : C*3, C*4, C*8, I*3, I*7
1. Investment advisory activity
  • Regulatory framework
  • Services offering, differences advice / information
  • Compliance with obligations
2. Knowledge of his/her client
  • Suitability of products and services with the customer profile
  • Relevant information. Understanding and interpretation
  • Evolution, communication, obligations
3. Anti-money laundering
  • Regulatory framework, responsibilities, sanctions
  • Customer knowledge, obligations
  • How money laundering works: steps and points of attention
4. Market abuse
  • Regulatory framework, responsibilities, sanctions
  • Fields of application, prevention and detection tools
  • Privileged information, share buybacks, insider trading and other cases

LLLC- MIFID II : Correlation table

Ref. CSSF Person providing investment advice Ref. CSSF Person providing information on investment products Modules
C*1 understand the key characteristics, risk and features of the investment products being offered or recommended, including any general tax implications to be incurred by the client in the context of transactions. Particular care must be taken when providing advice with respect to products characterised by higher levels of complexity; I*1 understand the key characteristics, risk and features of those investment products available through the professional, including any general tax implications and costs to be incurred by the client in the context of transactions. Particular care must be taken when giving information with respect to products characterised by higher levels of complexity; III – IV
C*2 understand the total costs and charges to be incurred by the client in the context of the type of investment product being offered or recommended and the costs related to the provision of the advice and any other related services being provided; I*2 understand the total amount of costs and charges to be incurred by the client in the context of transactions in an investment product, or investment services or ancillary services; III
C*3 fulfil the obligations required by the professional in relation to the suitability requirements including the obligations as set out in the Guidelines on certain aspects of the MiFID II suitability requirements (as defined in the Guidelines); I*3 understand the characteristics and scope of investment services or ancillary services; V
C*4 understand how the type of investment product provided by the professional may not be suitable for the client, having assessed the relevant information provided by the client against potential changes that may have occurred since the relevant information was gathered; III – V
C*5 understand how financial markets function and how they affect the value and pricing of investment products offered or recommended to clients; I*4 understand how financial markets function and how they affect the value and pricing of investment products on which they provide information to clients; I
C*6 understand the impact of economic figures, national/regional/global events on markets and on the value of investment products being offered or recommended to clients; I*5 understand the impact of economic figures, national/regional/global events on markets and on the value of investment products on which they provide information; I
C*7 understand the difference between past performance and future performance scenarios as well as the limits of predictive forecasting; I*6 understand the difference between past performance and future performance scenarios as well as the limits of predictive forecasting; IV
C*8 understand issues relating to market abuse and anti-money laundering; I*7 understand issues relating to market abuse and anti-money laundering; V
C*9 assess data relevant to the type investment products offered or recommended to clients such as Key Investor Information Documents, prospectuses, financial statements, or financial data; I*8 assess data relevant to the investment products on which they provide information to clients such as Key Investor Information Documents, prospectuses, financial statements, or financial data; III
C*10 understand specific market structures for the type investment products offered or recommended to clients and, where relevant, their trading venues or the existence of any secondary markets; I*9 understand specific market structures for the investment products on which they provide information to clients and, where relevant, their trading venues or the existence of any secondary markets; II – III
C*11 have a basic knowledge of valuation principles for the type of investment products offered or recommended to clients; I*10 have a basic knowledge of valuation principles for the type of investment products in relation to which the information is provided. II
C*12 understand the fundamentals of managing a portfolio, including being able to understand the implications of diversification regarding individual investment alternatives. II

Certification

Certificate of participation and of achievement per module, or for the complete programme where applicable.