AGM highlights
This year’s Annual General Meeting took place in Berlin. Topics covered, along with
the report on the 2006 business year, discussions on future perspectives and strategies, particularly
with regard to the EFFAS commissions; and the welcoming of HUFA, the Croatian society of investment professionals,
the 25th member society.
Synchronised management: the National Member Societies, the EMC and the Chairman
Business year 2006
EFFAS has two executive bodies: the General Meeting of members and the Executive Management Committee (EMC). The General Meeting is composed of the authorised representatives of the National Member Societies. The EMC comprises six members who are responsible for the day-to-day management of the association, as well as for supporting the Chairman in his daily work.
Following the General Meeting elections in 2006, the EMC consists of the Chairman, and five members. The present EMC members are: Chairman: Fritz H. Rau (DVFA, Germany), René Willemsen (VBA, Netherlands), Gonzalo Milans del Bosch (IEAF, Spain), Vincent Bazi (SFAF, France), Friedrich Mostböck (ÖVFA, Austria), Giampaolo Trasi (AIAF, Italy). Giampaolo Trasi and René Willemsen were elected Deputy Chairmen at the EMC meeting following the Annual General Meeting.
During the year, the EMC worked on the introduction of a new Governance Model for EFFAS along with steps to be taken to support new professional societies in developing their activities, training and qualification programmes in their respective countries. The visibility of EFFAS at lobbying level has to be maintained, and EFFAS will continue to consolidate the capabilities and strengths of the NMS and support the financial services regulation. This is also important in order for national societies to be acknowledged by their local regulatory organisations.
Issues to be tackled during the coming months will cover support for developing the training programmes in emerging professional organisations, further developing the training programmes for investment professionals and a greater emphasis on marketing the CIIA designation to improve cooperation in the ISFA and ILPIP areas. And last but not least, the EMC is looking for candidates to stand for election as Chairman next year.
The Commissions report
1. EFFAS Commission on Intellectual Capital - CIC
One topic which is increasingly gaining the interest of the financial community is non-financial information, e.g. Intellectual Capital, as it comprises a large portion of the market value of a company.
As Europe is still at the forefront of this development, it was important that EFFAS globally unites its efforts and be among the initiators.
EFFAS has therefore set up a “Commission on Intellectual Capital” in this area. The initial meeting of the CIC took place in Frankfurt, in October 2006. The meeting started with an exchange of views on the main goals and objectives of the CIC and drafting the main fields of the CIC Working Agenda.
Members of the CIC are: Antoine Colonna (France), Ralf Frank (Germany), Andrea Gasperini (Italy), Teresa Gil (Spain), Jan Hofmann (Germany) and Erwin Houbrechts (Netherlands).
2. EFFAS European Bond Commission – EBC
The EFFAS Bond Commission specifically represents EFFAS in the area of fixed income and is also participating in the EFFAS Market Structure Commission which drafts the responses related to fixed income.
In terms of standardising relevant measures the EFFAS EBC has been working since 2006 on a family of yield curves: the Eurozone (or EZ) Market Curve, the Eurozone default-risk-free term structure and the Eurozone Credit Term Structure.
As part of a general study on covenants, the EEBC aims to publish a pamphlet written specifically to draw market attention to the importance of covenants. Nowadays, it is quite often the case that bonds will actually be issued before a prospectus has been published. The pamphlet will summarise 10 case histories highlighting the importance of reading the small print.
Rolf-Peter Horst and Thomas Klepsch are Deputy Chairmen, Gottfried Ransmayr is Treasurer, Christian Schedling Secretary, Wolfgang Marty is Chairman of the Methods & Measures Committee.
Chairman of the EFFAS European Bond Commission is Chris Golden.
3. EFFAS Financial Accounting Commission – FAC
The Financial Accounting Commission’s goal is the ongoing development of international accounting from the analyst’s (user’s) point of view. As a result, the FAC regularly issues its opinion in consultation papers from the International Accounting Standards Board (IASB), and is active in harmonising accounting standards.
The FAC represents EFFAS in the European Financial Reporting Advisory Group (EFRAG). EFRAG advises the European Commission on various accounting issues, such as the introduction and implementation of IFRS (International Financial Reporting Standards). The user side in the EFRAG TEG is represented by Dr. Carsten Zielke, member of the French (SFAF) and German (DVFA) associations.
The following EFFAS representatives belong to the EFRAG User Panel: Jean-Baptiste Bellon (France), Javier de Frutos (Spain), Jacques de Greling (France), Dr. Rainer Husman (Germany), Sergio Lamonica (Italy), Peter Malmqvist (Sweden), Michael Schickling (Germany), Friedrich Spandl (Austria), Dr. Carsten Zielke (Germany).
The Financial Accounting Commission aims to continue to develop International Accounting Standards from the ana-lyst’s standpoint. The Commission actively participates in harmonising accounting standards, regularly issuing its opinion in consultation papers from the International Accounting Standards Board (IASB). The commission holds its next meeting on 18 January in London.
Members of the Commission are: Dario Colombo (Italy), Adrian Cowell (UK), Jacques de Greling (France), Hugo Haarbosch (Netherlands), Rainer Husmann (Germany), Taras Koval (Ukraine), Rolf Rundfelt (Sweden), Henning Strom (Norway), Jérôme Vial (Switzerland).
The Chairman of the EFFAS FAC is Javier de Frutos (Spain). Deputy Chairman is Friedrich Spandl (Austria).
4. EFFAS Market Structure Commission
– MSC
The Market Structure Commission coor
dinates and submits position papers as well as professional input mainly to CESR, as well as the other EU regulatory bodies (EU Commission, the EU Parliament) and IOSCO. Many of the suggestions provided have been implemented in the present directives.
Responses to the various consultation papers can be found on the EFFAS web-site within Position Papers: http://www. effas.com/en/position.htm.
Via the MSC, the efforts of the member societies already active in lobbying are concentrated in one forum. This prevents efforts from doubling up and yields an added benefit: all National Member Societies are represented at a European level.
Members of the Market Structure Commission are: Vincent Bazi (France), Hans Buysse (Belgium), Chris Golden (UK), Chris Grabowski (Poland, as an independent expert), Dr. Peter König (Germany), Professor Otto Lucius (Austria), Ramiro Martínez-Pardo (Spain), Harry Panjer (Netherlands), Rafael Sarandeses (Spain), Giorgio Zancan (Italy). The Preparer is Otto Praschma (Germany).
Chairman of the Market Structure Commission is Giampaolo Trasi (AIAF, Italy).
5. EFFAS Training and Qualification Commission – TQC
The TQC proved itself as a very effective vehicle for communicating and working across EFFAS within training and qualifications, including its involvement with the CIIA designation.
With regard to the CIIA designation, the designation itself made good progress not only in Europe, but also in Asia and South America. CIIA designation holders now number over 3,500. There are over 6,500 registered CIIA candidates and exactly 30 ACIIA member societies.
In the United Kingdom the ACIIA has an awarding body status and the CIIA is recognised by FSSC (Financial Services Skills Council) as a Key 2 qualification. Further information at www.aciia.org.
Chairman of the Training and Qualification Commission (TQC) is Dr. Jesus López Zaballos.
6. Commission on Corporate Responsibility (CCR)
Corporate Responsibility has become a well-known global key word when it comes to topics related to matters such as climate change, pollution, crisis, governance issues and human rights violations. Stock-listed companies play an important role as they are under public control, and have to react to market demands and future challenges.
Through this commission, EFFAS raise awareness by defining the information needed and providing guidance on the necessary input, thus demonstrating the importance of corporate responsibility in the financial community.
The Chairman of the Commission is Friedrich Mostböck from ÖVFA, Austria, and the European Coordinator is Ralf Frank from DVFA, Germany.
Following the kick-off meeting, the commission was renamed the Commission on Extra-Financials (EFFAS CEF).