The focus of this course is on the different lending solutions available to customers. Lending solutions are an essential service line and product offered by private wealth management (“PWM”) institutions and private wealth managers. In order to understand lending solutions fully, we must first understand the basic concept of lending in general, its place within the wider banking industry, and the commercial reality of lending in the current regulatory environment. We will then consider the universal principles and knowledge required for all financial institutions and private wealth managers engaged in the lending profession.
On completing this course, you should be able to:
a. Understand the benefits and risks of borrowing/lending activities and leverage transactions for investors and PWM institutions;
b. Understand the credit process and the private wealth manager's role and responsibility within it;
c. Describe the types of credit facility offered by PWM businesses, the rationale for such facilities and risk control mechanisms and how to apply share margin financing;
d. Assess customers' suitability for using borrowing and leveraging as an investment strategy, and understand the concepts of customer and product suitability, using the accumulator as an example;
e. Explain how a Lombard facility is structured and the rationale behind advance ratio (“AR”), haircut and concentration rules;
f. Understand how a portfolio's market value and collateral value (“CV”) are used to calculate initial margins (“IMs”) and mark-to-market (“MTM”) for derivative transactions;
g. Understand the selling process for loans and leverage products; and
h. Apply leverage under different market environments in meeting the needs, objectives and risk profile of the customer.
1. Principles of Lending
2. Assessing and Monitoring Credits
3. Lombard Lending
4. Other Forms of Credit
Who Should Attend
It is primarily targeted to CPWP candidates who wish to take the CPWP Module 1 Paper 1 Examination. It is also relevant to those PWM practitioners who would like to enhance their knowledge and skills in wealth management products.
Instructor / Speaker
Jason has had a 20-year banking career in the APAC region. Before starting training, he was as Managing Director and Head of Listed Derivatives and OTC Clearing for Deutsche Bank in APAC. Jason has rich hands-on experience at a senior level, having been responsible for the management of the sales teams and the regulatory and compliance performance of the business across APAC.
He holds CISI Global Securities Operations and CISI Extended Certificate in Investment Operations (International Securities & Investment, Operational Risk, Derivatives Operations) qualifications. He also holds qualifications with the Singapore Institute of Banking and Finance. He was educated in the UK at the Royal Military Academy, Sandhurst.