Who & Why - Claritas

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Claritas® Investment CertificationBy CFA Institute, USA

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Who & Why Claritas?


Who Should Do Claritas?

Claritas

Working in Investment Industry

Working in Financial Services Industry (Banks)

Wanting to switch fields into Investment and FS

Students wanting entry level positions


Why You Should Do Claritas?

I work for the Marketing / Sales Team of an Investment Industry, Do I need to do Claritas & Why?

Yes. Claritas will definitely help you in the below areas:

– Understanding different financial products and mapping to the right segments through targeted campaigns

– Intelligent conversation with prospects– Aviod mis-selling by following the well defined ethical standards– Timely feedback and suggestions on product performance and

alternatives for corrective actions


Lets See a Real-life Situation…

What is the Problem here?

Kartik is the Sales Manager of XYZ Investments. His existing customer Mr. Sunil (age 55) comes to him saying “I have Rs. 50,000 of idle cash which I need it after 12 months. Can you please suggest a suitable investment for me?”

Kartik says “Yes, Sir. You can invest in an Equity Mutual Fund of PQR Fund, it will give you good returns.”

1. Ethics – Mutual funds give higher sales commissions, hence Kartik looked at his personal interest more than customers.

2. Suitability – Kartik did not verify Sunil’s risk profile / apetite, if he can invest in an equity Mutual Fund or not.

3. Uncertainty – As mutual is subject to market risk, Sunil may end up earning a lesser return than expected, may even end up losing a part of his principal.



I work for the Operations & Compliance Team of an Investment Industry, Do I need to do Claritas & Why?


Operations:– Understand complete lifecycle of Investment products

from Origination to Servicing to Closure / Settlement– Have intelligent conversations with Product and

Marketing teams– Timely execution of investment transactions by

understanding their market impacts

Compliance:– Foster a culture to follow investment ethical practices to

regain trust from market participants– Ensure tighter compliance to investment operational

policies to avoid customer and organizational loss and potential litigations

– Have a tighter watch on the changing investment practices




Rosy is working for the operations team of XYZ investments. On a busy day she gets a lot of liquidation / redemption requests from various clients. One was for Bonds maturity processing, another was for Sale of 2 Lots of TATA Futures and many more. She decides to process the Bond maturity first and later the TATA futures. In few minutes, the price of TATA futures starts declining.

1. Time sensitivity – She should have acted on TATA futures first as it is market sensitive. Here there will be case of financial loss which needs to be compensated.

2. Lifecycle – She is not clear about the lifecycle or various stages a redemption / sale / liquidation requests goes through for any financial instruments.



I work for the Customer Service / Admin Team of an Investment Industry, Do I need to do Claritas & Why?


Customer Service:– Understand customer specific investment products to

provide timely and effective service– Faster resolution of Investment related queries and

complaints due to better understanding– Ability to cross sell investment products by anticipating a

customer need

Administration:– Understanding the Investment lifecycle and the Industry

structure will help in creating a better surround system for efficient functioning and operations

– Become more eligible to switch to customer facing roles in the Investment Industry




Mr. Sunil, a customer of XYZ investments calls the Customer Service officer Mr. Rohan and asks the following question.

1. Will Simple Or Compund Interest product give a better yield?

2. A Share of HLL purchased at 150 1 year go is now trading at 175. Today I got a dividend from the same of Rs.10. What is my return?

3. What are the Fixed Income Investments you offer?

Mr.Rohan said, “ Sir I will call you back in 15 mins”

1. Incomplete knowledge of few terminologies above2. Not Confident to provide instant response to Mr. Sunil



I work for the HR / IT Team of an Investment Industry, Do I need to do Claritas & Why?


Human Resource:– Creating a solid team by hiring the right person for the

right investment related job– Will provide detailed understanding of different

Investment roles performed by a candidate in the past– Can help creating a proper appraisal matrix by identifying

Objective and Subjective criteria's in investment roles

Information Technology:– Contributing to business requirements from the business

teams– Based on the nature and the processing of the investment

products, you will be more willing to introduce and implement Straight Through Processing

– Faster Time to Market from conceptualization to designof products




The Investment Department Head of Prime Broking Ltd, instructs the HR department to look for New hires for the below profile.

1. Research Analyst with 5–8 years experience in Commodity Derivatives and Options Strategies

2. Relationship Manager having handled HNI portfolios with a overall worth of over Rs. 100 million across all investment products

1. The HR person is not very familiar of these roles and not sure of how to filter few roles from the Job portal.


Lets see a real-life situation of an IT Professional…


Dan Finance Software Ltd sells software to manage Project Finance, Working Capital & Supply Chain Finance to firms across the world. The Business Head of Project Finance Department request for a software development to compute IRR , NPV & Discounted Payback for a stream of cash flows. This requirement goes to a Software Programmer to develop the same in a matter of 7 days.

1. The Programmer starts the Job without even understanding the basics of the requirement. He is not aware of the terminologies of IRR, NPV etc.., still starts coding based on Requirement specifications. This results in multiple iterations of the code to finally meet the expectations and the deadline is overshot!



I work as a Relationship Manager for a Bank, Do I need to do Claritas & Why?


– Recommending & Cross-Selling right investment products and contributing to the generation of fee-based income for the bank

– Understanding the composition of overall investment portfolio of a customer and basic risk factors

– Understanding the Investment Policy Statement and suggesting a suitable asset allocation

– Measurement of portfolio performance and timely customer communication

– As a stepping stone in the world of Investment education, you become more aware and ready to venture in gaining the Gold Standard in Investment education by pursuing the CFA program as a next step



I am looking forward to switch my career from my existing industry to an Investment / Financial Services Industry, Do I need to do Claritas & Why?

OR

I am a Student and looking for an entry level position in an Investment / Financial Services Industry. Should I do Claritas and Why?


– You gain a basic understanding of the world of Investment Industry, different Investment / financial products like Equities, Bonds, Derivatives, Commodities etc.

– Understanding the Risk & Return attributes of various products as above and calculation of the return.

– Understanding the ethical standards warranted in an Investment Industry / Financial services

– You can accelerate your learning curve in this new industry as compared to a person without a formal Investment education


That is not it……..You All Gain Something More!

You can learn to Manage yours and your family’s investment and finances more intelligently:

– Understand different types of Investment Avenues– Invest as per your Risk appetite– Understand & Measure your investment returns– Take timely course corrections – Have more matured and productive conversations with your RM / Banker


Contact Details

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Who & Why - Claritas

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