The Role of EFFAS: Promoting Financial Integration and Investment Standards

1. The Role of EFFAS Fritz Mostböck, CEFA Member Executive Board EFFAS Head of Group Research, Erste Group AAFBR Conference Bucharest, 11 November 2010

2. 1. EFFAS Activities - Mission Austria Belgium Bulgaria Croatia Finland France Germany Great Britain Greece Hungary Italy Kazakhstan Latvia Lithuania Luxemburg Netherlands Norway Poland Portugal Romania Russia Serbia Spain Sweden Switzerland Ukraine Promoting Integration Thriving on Diversity Creating Wealth • Integrity • Qualification • Communication

3. A standard setter for investment professionals’ requirements • Set up in 1962 as umbrella organisation • 26 member societies, representing around 16,000 investment professionals • Head Office: Frankfurt am Main • EFFAS executive bodies: AGM and Executive Management Committee (EMC) Chairman: Giampaolo Trasi (I) Deputy Chairmen: Vincent Bazi (F), Jesús López Zaballos (E) Members: Fritz Mostböck (A) Marianne Flink (S) Hans Buysse (B)

4. 1. EFFAS Activities - Background • EFFAS is the umbrella organisation of 26 national local societies of investment professionals in Europe. • EFFAS represents more than 16,000 professionals in Equity-/Bond Research, Asset-/Portfolio Management and Investment Advice. • Overall aim is to set standards for investment professionals in communication, ethics and qualification; to bring influence on EU guidelines and to recognise/respect regional market characteristics. • Europe needs a common financial market communication to guarantee the competitiveness of its economy and human capital. • A functioning financial market and investor confidence are preconditions for this to be achieved.

5. 1. EFFAS Activities - Model • EFFAS is a platform of independent members • Exchanging ideas and experiences • Providing information • Providing joint actions where necessary (EU/ CESR) • Strategic issues • Common interest • Mostly non-for-profit • Examples: Ethics, Accounting, Regulation, etc. • Financed and controlled by EFFAS • Projects • Not necessarily of common interest • Voluntary participation • A-la-carte financing • Examples: CIIA, GIPS, ISFA, conferences, company presentations

6. 2. EFFAS Commissions EFFAS Commission on Environmental, Social and Governance Issues (CESG) • Increasing transparency between a multitude of extra-financial and ESG activities • Instigating research on ESG in order to find the missing link between extra-financials and financial performance • Promoting corporate reporting methods and models for CR, ESG and extra -financial which serve the needs of investors and financial analysts EFFAS Training and Qualification Commission (TQC) • Standards on education and examination • Continuous development of syllabus • Benchmarking of national educational standards • Co-ordination of conferences and seminars EFFAS Financial Accounting Commission (FAC) • Accounting standards, guidance on analytical methods • Member in several international financial and accounting bodies (EFRAG - European Financial Reporting Advisory Group, etc.)

7. 2. EFFAS Commissions EFFAS European Bond Commission (EBC) • Fixed income and derivatives standards throughout Europe • Improving the efficiency of European bond markets • Provide authoritative information on European bond markets • Present projects: calculating Eurozone curve, fitting yield curves through missing data points, etc. EFFAS Market Structure and Commission (MSC) • Comments on regulatory proposals (EU Commission, CESR, IOSCO, etc.) • EFFAS position papers • Pro-active lobbying for the sake of investment professionals EFFAS Commission on Intellectual Capital (CIC) • Topic is of world-wide interest, EFFAS is at the forefront • Raising the awareness of Intellectual Capital Reporting • Evaluation of qualitative elements from human capital • Representation at international conferences

8. 3. Training, conferences Training Programmes • CIIA (Certified International Investment Analyst) via global ACIIA network • Manuals and other training materials • Marketing and promotional support • Other designations: CIWM (Certified International Wealth Manager), CEFA (Certified European Financial Analyst)

9. 3. Training, Conferences CEFA Certified European Financial Analyst • First set up in 1990 • Is part of the EFFAS Governance Model • Covers same 7 topics as CIIA + national specific • Benchmarked to CIIA Foundation + national specific examination as threshold • Quality control by EFFAS Review Panel • CEFA provides another direct route to the CIIA • Both CIIA & CEFA offer global designations covering investment and financial issues of highly practical relevance • Both CIIA & CEFA respect local market requirements, conditions and characteristics and respect individual cultures In European countries like United Kingdom, Greece, Poland, Portugal, etc., EFFAS designations are recognised by the regulators.

10. 3. Training, conferences - Dimension of ACIIA Global designation Argentina Brazil China Chinese Taipei Hong Kong India Iran Japan Kenya Korea Mexico Morocco Nigeria Peru Tunisia + www.aciia.org

11. 3. Training, Conferences

12. 3. Training, conferences Conferences • Local national conferences • Conferences in association with EFFAS • Conferences via another local association as a partner • Stock market presentations or company presentations

13. 4. Status quo CEE - Potential EFFAS Members The EFFAS Landscape = EFFAS Member

14. Thank you for your attention! EFFAS The European Federation of Financial Analysts Societies Frankfurt am Main Mainzer Landstrasse 47a 60329 Frankfurt am Main Germany Tel. +49 69 26 4848 300 Fax. +49 69 26 4848 335 Email: info@effas.com Internet: www.effas.net www.effas.net