Effective from 1 October 2024, the Practice Note i.e. ‘Practice Note on the application of requirements in the insurance regulatory framework to specific services provided by licensed insurance brokers on investment choices and premium allocations under Investment-Linked Assurance Scheme Policies (“ILAS Policies”)’ issued by the Insurance Authority on 5 July 2024 establishes competency requirements for licensed insurance brokers providing advisory investment services or discretionary investment management services in relation to ILAS Policies.

Existing licensed insurance brokers who cannot meet the new competency requirements by 1 October 2024 can continue providing such services only in relation to ILAS policies issued before 1 October 2024 (“Grandfathered ILAS Policies”) and be subject to the Grandfathering Arrangements set out in the Practice Note (“Grandfathering Arrangements”).

Under the Grandfathering Arrangements, the relevant licensed insurance brokers must complete two additional CPD hours annually in each of following CPD Assessment Period:
• from 1 August 2024 to 31 July 2025
• from 1 August 2025 to 31 July 2026; and
• from 1 August 2026 to 31 July 2027

By 1 August 2027, full competence with the competency requirements must be achieved by the relevant licensed insurance brokers.

This course is recognised by the IA under the Grandfathering Arrangements and equips licensed insurance brokers with the necessary technical knowledge to continue providing advisory investment services or discretionary investment management services. Participants will learn investment strategies, portfolio management, and industry best practices, ensuring compliance and high-quality client service.

Please read the User Guide before enrolling in the Course, especially if you are new to our system.

1. Understand Portfolio Management Concepts:
(i) Grasp basic theoretical aspects, including investor preferences and the efficient frontier.
(ii) Explain key models like CAPM and Arbitrage Pricing Theory.

2. Analyse Investment Management Processes:
(i) Describe the steps in setting investment objectives and strategies.
(ii) Differentiate between active and passive investment approaches.
(iii) Evaluate portfolio performance.

Part 1: Theoretical Aspects of Portfolio Management
1.1 Investor's Preferences and Portfolio Construction:
(i) Understanding indifference curves
(ii) Combining investor's preferences with the efficient frontier

1.2 Asset Pricing and Valuation Models:
(i) Capital Asset Pricing Model (CAPM)
(ii) Arbitrage Pricing Theory
(iii) P/B-ROE valuation model

1.3 Efficient Market vs. Random Walk:
(i) Efficient Market hypothesis
(ii) Random Walk hypothesis

Part 2: Investment Management Practices
2.1 Overview of Investment Management Process:
(i) Key steps in the process

2.2 Setting Investment Objectives:
(i) Identifying objectives and constraints

2.3 Formulating Investment Strategies:
(i) Matching objectives with manager skills
(ii) Asset modeling
(iii) Active vs. passive approach
(iv) Asset allocation strategies

2.4 Investment Management Styles:
(i) Equity management style
(ii) Fixed income management style
(iii) Asset allocation management styles

2.5 Performance Measurement and Evaluation:
(i) Performance measurement
(ii) Qualitative and quantitative analysis
(iii) Attribution analysis

1. Existing licensed insurance brokers who are required under the ‘Practice Note on the application of requirements in the insurance regulatory framework to specific services provided by licensed insurance brokers on investment choices and premium allocations under Investment-Linked Assurance Scheme Policies (“ILAS Policies”)’ to fulfil the Additional CPD Requirement of 2 hours for Grandfathered ILAS Policies in the current CPD Assessment Period.

2. All other licensed insurance brokers who would like to deepen their knowledge of portfolio management in relation to ILAS Policies.

3. Anyone who is interested in learning the topic.

Administrative Details