ACI’s Strategic Planning Group (SPG) has embarked upon a co-operative effort with ACI Indonesia, ACI Australia and ACI Singapore, to draw up a blueprint for introducing a “professional standards” programme in Indonesia.
In late-December, ACI’s vice president Mike Eastaway, acting in his capacity as chairman of the SPG, travelled to Jakarta to present a suggested model for Indonesia to follow – similar to the dealer accreditation programme introduced and adopted by banks in Australia last year.
Eastaway, who works for National Australia Bank in Sydney, says ACI is working in partnership with the Bankers College in Jakarta and Jeffrey Turangan, ACI regional executive, to introduce professional standards for FX dealers in Indonesia.
Eastaway says a consultant may be brought in to work with Indonesia to fast track the blueprint presented in December, which involves working with the country’s local banks and its central bank.
Eastaway presented the blueprint to ACI’s Executive Committee when members met in Beirut in February. The professional standards programme consists of accreditation, education and training, as well as Continued Professional Development (CPD) modules.
The professional standards programme would require all forex dealers to pass a Core Examination (the ACI Dealing Certificate) with middle and back office staff possibly sitting the ACI Settlements Certificate. An ‘add-on’ module could be prepared and sat to cover local corporation law. New entrants would be obligated to gain this accreditation within six months of joining the industry.
A similar programme has already been enacted in Australia, where in excess of 3,500 dealers have sat and passed this examination to date. ACI Australia and the Australian Financial Markets Association (AFMA) worked together to prepare the programme. The ACI/AFMA Dealers Handbook can be used as the publication for the coursework, says Eastaway.
The SPG blueprint suggests establish
ing a Dealer Accreditation Committee, which could include interested market participants (eg, central bank, a corporate treasurers’ association, etc).
“It is feasible to have a publication for the course, and the ACI Dealing Certificate and combined local laws section, prepared within 12 months,” says Eastaway.
He says the publication/exam process through to completion of the Core Examination by all dealers can be completed over a two-year period.
WHO SHOULD TAKE THE EXAM?
Eastaway says that all dealers that work for institutions regulated by the central bank should take and pass the professional standards programme – and no exemptions should be given to existing dealers. He also suggests that the tests are delivered electronically, and says Prometric, which delivers ACI’s exams, has 15 test centres in Indonesia (13 in Jakarta) that can accommodate this.
CONTINUED PROFESSIONAL DEVELOPMENT
CPD is designed to keep the Core Exam “valid” as dealers are required to complete a minimum number of hours per year of courses, training, compliance seminars, etc, for a total of 25 hours. ACI’s suite of exams can be offered as a means of gaining these required hours.
ACI Indonesia should establish a period for which the Core Exam is valid (eg, two years before a re-sit is required). ACI Indonesia would keep records of dealers that have passed the Core Exam, but will eventually pass these over to the dealers’ institutions for control and follow-up.
Eastaway says ACI’s suite of subjects, which can be found on the ACI website www.aciforex.com, can work to fulfil the educational requirements. A list of training companies can also be obtained from ACI Education or from the ACI website.
As for fulfilling the CPD hours, an ACI Dealing Simulation Course can be set up each year, with initial assistance from ACI Australia, which recently helped ACI Lebanon run its first such course (see ACI Briefing, March 2001).
“This process can be built on to achieve a credible and internationally recognised module for all market professionals,” says Eastaway. “And ACI Indonesia will be viewed as a leader in the process if this programme is implemented in a timely fashion. The SPG will assist in this process to the implementation stage, but hard work is required at the local level to achieve the desired outcome.”