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Home > CPD / CPT / SFC Training > Hong Kong Insurance Authority (IA) Training

 

 

Hong Kong Insurance Authority (IA) Training

Target Participants
Course Outline and Objectives

Module 1 - Employment Ordinance & MPF Amendment Updates (2 hours)
Module 2 – The Art or Science of Portfolio Design (1 hour)
Module 3 – Protecting Clients’ Interests: Insurance & Investment Compliance (3 hours)
Module 4 – Basic Investment Knowledge (3 hours)
Module 5 - Portfolio Management and Design (3 hours)
Module 6 – Intermediate Investment Knowledge (2 hours)
Module 7 – Understanding Investor’s Psychology (2 hours)

Methodology
Accreditation
Scope of Services

 

Target Participants

MPFA / SFC / Insurance License Holders for fulfilling CPD & CPT requirements

Course Outline and Objectives

Module 1 - Employment Ordinance & MPF Amendment Updates  (2 hours)

1.   Employment Ordinance and Mandatory Provident Fund (MPF)

  • Background
  • Definitions
  • Deductions for MPF Contributions
  • Wages Restructuring
  • Changing employee to Self-employed Persons
  • Variations of Employment Terms
  • Severance Payment
  • Long Service Payment

2.    MPF Amendment Re-visit

  • Legislative Amendments
  • Investment Restrictions
  • Other Updates

At the end of the course, participants will be able to:

  1. Recap on the Employment Ordinance updates
  2. Revisit on the different amendments and update of MPF

 

 

Module 2 – The Art or Science of Portfolio Design (1 hour)

1.    The importance of Asset Allocation 

  • Reasons for the importance of Asset Allocation

2.    Basic Concepts and Terminologies

  • Asset Allocation among different sectors
  • The Sharpe Ratio
  • Investment Concepts
  • The Information Ratio
  • S&P Star Rating System

3.    Optimization

  • How to optimise a portfolio effectively
  • Before and after Optimization
  • The Benchmarking

At the end of the course, participants will be able to:

  • Understand some basic terminologies of portfolio design
  • Design an optimal portfolio for customers

 

Module 3 – Protecting Clients’ Interests: Insurance & Investment Compliance (3 hours)

1.    Regulatory Framework of Hong Kong Insurance Industry 

  • The Hong Kong Monetary Authority (HKMA)
  • The Office of the Commission of Insurance (OCI)
  • The Hong Kong Federation of Insurers (HKFI)

2.    Regulatory Requirements of Insurance Compliance

  • Major Legislations
  • Major Guidelines
  • Major Codes/Standards

3.    Insurance Compliance in Practice

  • Useful Terms
  • Registration
  • Fitness & Properness Issues/Complaints
  • Minimum Qualifications for Insurance Agents
  • Staff Eligibility
  • Conduct for General/Long-term Insurance Business
  • Protect your clients’ interest

4.    Related Law and Codes in Investment Compliance

  • Securities & Futures Ordinance (SFO)
  • Code of Conduct for Persons licensed by or registered with the SFC
  • Guidelines on CPT

At the end of the course, participants will be able to:

  1. Acquire knowledge on Insurance and Investment Compliance so as to protect the clients’ interest
  2. Put the clients’ interests in the first place
  3. Comply with the related ordinance and codes of practice so as to enhance the company’s professional image in front of the clients

 

 

Module 4 – Basic Investment Knowledge (3 hours)

1.    Essentials of Investment Knowledge 

  • Time value of money
  • Interest rates
  • Present value vs. future value
  • Time Deposit
  • Bond
  • Types of risks
  • Risk vs. Expected Return
  • Fundamental risk management techniques
  • 15 types of risks
  • Types of return
  • Holding period return (HPR)
  • Annual Percentage Rate of Return (APR)
  • Effective Annualized Rate of Return (EARR)
  • Arithmetic Average Return (AAR)
  • Geometric Average Return (GAR)
  • Risk Return Trade-off

2.    Common Financial Products and Markets

  • Equity securities
    • What is equity?
    • Methods of raising equity capital
    • The Hong Kong Stock Market
    • Fundamentals of equity securities
  • Debt securities
    • What is debt?
    • Debt vs. equity
    • Short and Long-term debt securities
    • Fundamentals of pricing bonds
    • The Hong Kong Debt market

At the end of the course, participants will be able to:

  • Recognize some important concepts of investment
  • Enhance knowledge in different kinds of investment products and markets

 

Module 5 - Portfolio Management and Design (3 hours)

  1. Basic Portfolio Management
    • Risk diversification
      • Market risk vs. unique risk
      • Correlation coefficients
    • Efficient frontiers
      • Risk & return trade-off
    • Optimal portfolios
      • Market portfolio
      • Risk-free asset
    • Capital asset pricing model
      • Beta coefficient
      • Risk premium

  2. Investment Strategies
    • Active investment strategies
      • Country selection
      • Asset allocation
      • Market timing
      • Security selection
    • Passive investment strategies
      • Index tracking
      • Index fund investments
    • Dollar-cost averaging

At the end of the course, participants will be able to:

  • understand some basic concepts of portfolio management
  • design &  formulate the optimal investment strategies for customers

 

Module 6 – Intermediate Investment Knowledge (2 hours)

    1. Derivatives Securities
      • Functions of derivatives
      • Types of contracts
        • Futures
        • Forwards
        • Warrants
        • Options
        • Equity-linked Notes

    2. Unit Trusts and Mutual Funds
      • Investment Rules
      • Advantages & Disadvantages
      • Net Asset Value (NAV) Calculation
      • Major Types of Managed Funds

At the end of the course, participants will be able to:

  1. Recognize some important concepts of investment
  2. Enhance knowledge in different kinds of investment products and markets

 

Module 7 – Understanding Investor’s Psychology (2 hours)

    1. Common Misconceptions of Investors
      • Overconfidence
      • Over-optimism
      • Hindsight bias
      • Law of small numbers
      • Mental accounting

    2. Psychonomic Investors’ Profile
      • Part 1 – Dominant Investor Type (DIT)
      • Part 2 – Risk Propensity (RP)
      • Assessment Scoring Table
      • Product Mapping Table

    3. Product Mapping
      • Types of Investors
      • Product Mapping Table

At the end of the course, participants will be able to:

  • Understand the misconceptions of investors
  • Investors’ profile
  • Implement different investment strategies to different types of investors

 


Methodology

  • Lecture
  • Assessment
  • Case Study


Accreditation

  • 2 CPD core hours & 14 CPD non-core hours for MPFA
  • 16 CPD hours for IA
  • 16 CPT hours for SFC


Scope of Services

  • Venue to be provided by your company or HKIFE


  • Lecture notes to be designed and printed by HKIFE


  • CPD Accreditation for IA & MPFA and will be applied through HKIFE

  • Accreditation fees borne by HKIFE

 

© 2008 Hong Kong Institute of Financial Education Limited. All Rights Reserved.