If you are having difficulty reading this email click here to view an easy to read web based copy
go to FTA Update

Welcome to FTA Update February 8th, 2013

FTA Update is a regular e-newsletter that has been developed by FTA to feature the latest news, jobs and information.

FTA Update is edited by Rex Pannell. Please submit articles of interest to news@fta.asn.au. Any feedback you may care to make about this newsletter would be greatly appreciated.

The Association
The Finance & Treasury Association (FTA) is a not-for-profit association for professionals working across all aspects of treasury and financial risk management. The FTA provides training and skills development and access to current information, facilitates networking and builds a community in this specialised area of business.

Vision
The FTA supports the career and ongoing development of its members in their ambition to excel and be leaders in their field.

To join the FTA please visit www.finance-treasury.com © FTA




2013 FTA Partners
























CEO's Comment

Speakers at FTA's Debt Capital Markets; UK Lecture on Rebuilding Trust; Win a place at the SA Advanced Valuations course

Dear Colleagues,

A shorter CEO’s comment this week as we focus on some exciting new member initiatives.

Semi & Corporate speakers at FTA’s Debt Capital Markets events throughout Australia [program & rego links]

Throughout the year, in addition to the Congress, there are a number of opportunities through the banks themselves and other service providers for treasurers to be briefed on or to attend events that provide an update on the state of debt capital markets.

So, why attend FTA’s upcoming sessions in your home town?

  • Receive an update on the key capital markets in a convenient half-day information session;
  • Hear insights on the latest transactions including re-financings, pricing and recent developments in the markets from the arrangers, and corporate and semi-government issuers;
  • With 6-7 markets covered, undertake a cost benefit analysis of the various markets and opportunities for borrowers in 2013;
  • Network with your FTA peers and discuss latest practice and regulatory changes, including new rules for issuing bonds to retail investors;
  • Learn from a panel of corporate treasurers and semi-government issuers on (in some cases) some very recent transactions.

Confirmed panellists

SA – Feb 18

John Powell, Director Financial Markets and Client Service, SAFA.

QLD – Feb 20

Kevin Kehoe CFTP, Treasurer, QT Mutual Bank;

Joanne Thornton, QTC;

Tony Weder FFTP, Treasurer, QIC;

Vic – Feb 28

We are looking for volunteers: contact Anita Brekalo, Event Coordinator.

WA – March 6

Ian Wells CFTP, General Manager Funding, Fortescue Metals Group;

Chris Papaioannou CFTP, Treasurer, Australian Capital Equity.

NSW – March 15

John Kite FFTP, Deputy CFO, Sydney Airport (Chairing panel);

Asrar Rahman FFTP, Group Treasurer, Woolworths;

Peter Tonagh, CFO, Foxtel

If your 2012/13 training budget is already tight, ask your favourite bank for a sponsor’s ticket. They each may have a few to distribute.

ACT winter keynote: “It’s a Question of Trust” - audio recording

4 February 2013

Hear Professor John Kay, Economist and Author, Antonio Horta-Osorio, Group Chief Executive of Lloyds Banking Group, and Philippa Foster Back, Director of the Institute of Business Ethics, debate the question of trust and how [the UK] will move forward from here.

At 95 minutes, I haven’t had a chance to listen to it yet but anyone interested in the future shape of the global financial system will have an interest.

Australia, we must acknowledge, has for a variety of reasons not suffered the same financial sector retrenchment as has been seen in the UK and Europe. Nevertheless, in a global financial system there are transmission mechanisms through processes, technology and regulation to which our banks, and their non-financial corporation clients (represented by FTA members) are not immune. Witness the over-the-counter derivative regulations.

At one time, broadly defined, financial services accounted for nearly 40% of GDP. This disproportionate weighting has meant that the bailout of too-big-to-fail banks in the UK has been a large impost on the Exchequer felt by taxpayers and evident in sustained economic weakness. While debated in Australia, distrust of financial services is very real in the UK. Trust is a key foundation for a functioning payments system, and particularly of a fractional banking system which facilitates the credit creation which lubricates the wheels of commerce.

Member draw for one ticket to attend in SA a 3-day “Advanced Corporate Valuation Program” with Prof Kevin Kaiser of INSEAD, March 5 -7

In the simplest form, despite complex operating strategies, companies can create value by being efficient at their core business, as this usually results in a higher earnings multiple, or by acquiring other businesses for the right price or selling under-performing business units for better value than there worth in their current state.

The Finance and Treasury Association is pleased to be partnering with Invest in South Australia on the delivery of this Program and to offer FTA members a special registration fee. Financial FTA members will be eligible for a 10% discount to attend this prestigious event.

World renowned educator Kevin Kaiser, Professor Management Practice at INSEAD (Paris), will present his 3-day “Advanced Corporate Valuation Program” in Australia for the first time. Professor Kaiser will challenge traditional approaches to valuation and demonstrate how you can use valuation in daily decision making to remain competitive and ensure long term survival.

Program:

Who should attend?Bankers involved in advising corporate clients; corporate finance consultants/accountants; M&A professionals; private equity professionals; and people involved in investment decision-making or responsible for corporate finance strategy will benefit from this program.

Key benefits:

  • Learn how to distinguish value creation from value destruction in order to ensure long- term competitive success and survival;
  • Deepen your understanding of the “why we do it that way” behind the valuation concepts you practice daily;
  • Develop the ability to handle cross-border, emerging-market and other complicated valuations;
  • Question common practices and identify common mistakes and misunderstanding.

Registration details:

FTA members should quote their post-nominals to access the 10% discount. GST-inclusive, the value of this discount is $580 to those that do not require accommodation and $670 to those that do.

One FTA member will be able to attend this event as a guest of Invest SA!

Value - Program alone: $5,800, program including 4 nights accommodation: $6,700

To put your name in the draw to win, please click on this link.

You must be a financial (paid up) member of The Finance and Treasury Association (FTA), and be available to attend this 3 day course in Adelaide, March 5-7 2013.

The prize is not-transferable.

I will draw the prize on Tuesday February 18th 2013 and the winner announced in that week’s FTA Update.

Cheers,

David Michell CFTP (Snr)

CEO, The Finance and Treasury Association

david.michell@fta.asn.au

www.finance-treasury.com

[ top ]

News

Greater tax transparency

The Federal Government has made clear it intends to improve the transparency of Australia's business tax system.

"Large multinational companies that use complex arrangements and contrived corporate structures to avoid paying their fair share of tax should not be able to hide behind a veil of secrecy," Assistant Treasurer, David Bradbury, says.

Mr Bradbury says protecting taxpayer confidentiality for individuals is essential, but recent events in Australia and around the world call into question whether large and multinational businesses should have the same level of confidentiality about the taxes they have paid.

“Improving the transparency of Australia's business tax system will encourage enterprises to pay their fair share of tax and discourage aggressive tax minimisation practices. It will allow the public to better understand the business tax system and engage in debates about tax policy.

“The Government will also explore ways to improve the sharing of tax information between the Australian Taxation Office and other key corporate regulators including the Foreign Investment Review Board, the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority.”

Mr Bradbury says such work will enhance the administration and regulation of Australia's tax system and capital markets.

"That is why I have asked Treasury, in consultation with the Specialist Reference Group on Ways to Address Tax Minimisation of Multinational Enterprises I announced in December last year, to develop the details of how changes could be implemented."

In particular:

  • how the policy could best be designed to cover large and multinational businesses, including whether a threshold test would be appropriate;
  • which federal taxes should be disclosed; and
  • how the tax information should be made publicly available.

Mr Bradbury says following the first meeting of the Specialist Reference Group later this month, the government will consider the advice from Treasury and views of the community to assess what changes are appropriate, with a view to introducing any necessary legislative changes during 2013.

[ top ]

SMSF auditor register is here

ASIC’s registration of self-managed super fund auditors started at the end of January and auditors doing SMSF audits can apply for registration online.

The regulator says the new register is part of the Federal Government’s ‘Stronger Super’ reforms, which will make Australia’s superannuation system stronger and more efficient. ASIC has worked closely with government and industry on measures - including the register - to improve integrity and community confidence in the sector.

Auditors can apply to register as an SMSF auditor through ASIC’s online portal, ASIC Connect, via www.asic.gov.au/

Registration will be mandatory for anyone conducting an SMSF audit from 1 July 2013 and sanctions may apply if an auditor accepts an SMSF audit engagement without being registered after that date.

“This is a key step in the Stronger Super Reform process. The register and associated competency standards will improve the quality of SMSF audits,” ASIC Senior Executive, Ged Fitzpatrick, says.

“The ability to identify registered SMSF auditors is critical in underpinning confidence for SMSF trustees.”

Existing approved SMSF auditors can apply for registration under transitional arrangements between 31 January and 30 June 2013, which may exempt them from some registration requirements. Under these arrangements, registered company auditors are not required to undertake a competency exam nor are they required complete 300 hours of work auditing SMSFs.

ASIC advises prospective registrants to apply early, as applicants will not be able to practise as SMSF auditors from 1 July 2013 until they are registered. Applicants should lodge by 30 April 2013 to provide ASIC with adequate time to process their application.

More information is available on ASIC’s dedicated super webpage, for auditors on the SMSF auditor webpage, for consumers on ASIC’s Money Smart website and at the Government's website.

[ top ]

Nominations for membership of Accounting Standards Advisory Forum

The IFRS Foundation is inviting nominations for membership of the Accounting Standards Advisory Forum (ASAF).

The Call for Candidates sets out the membership criteria and other factors that the IFRS Foundation will take into account in selecting the members of the forum, together with proposed Terms of Reference and a Memorandum of Understanding (MoU).

The closing date for nominations is 28 February 2013. The IFRS Foundation will consider all eligible candidates for selection and proposes to discuss shortlisted nominations with a range of relevant regional and other bodies.

The Trustees will then approve the final membership of the ASAF. Subject to the progress of the selection process, the IASB has tentatively scheduled that the first meeting of the ASAF be held in April 2013.

The IFRS Foundation has also published a feedback statement analysing comments received in response to its public consultation paper entitled Invitation to Comment: Proposal to Establish an Accounting Standards Advisory Forum.

The consultation paper outlined proposals to create the Accounting Standards Advisory Forum (ASAF), consisting of national accounting standard-setters and regional bodies associated with accounting standard-setting. The proposed creation of this group follows one of the main recommendations of the February 2012 report Strategy Review 2011 by the Trustees of the IFRS Foundation.

The responses to that consultation revealed a high level of support for establishing the ASAF as a means of securing a more streamlined and effective dialogue between the International Accounting Standards Board (IASB) and the global accounting standard-setting community. The feedback statement can be accessed on the IFRS Foundation’s website.

[ top ]

Good governance essential through long campaign

The Business Council of Australia has warned that action is still needed on a medium-term fiscal strategy, despite the Prime Minister’s early announcement that she plans to go to the polls on 14 September.

BCA President, Tony Shepherd, says the longer government puts off the tough conversations on tax reform, workplace relations, Commonwealth-state relations and regulation, the harder the reform task will be.

Mr Shepherd says the PM’s early announcement that she plans to go to the polls on 14 September doesn’t reduce the importance of the government staying focused on delivering policies for long-term growth and jobs.

“It’s formal now that 2013 has become the year of the long campaign. But that doesn’t give the government licence to take its eyes off the ball in managing an economy undergoing major transition.

“Both major political parties will be tempted to make rash promises to simply win the election, but with rising costs and many businesses under pressure from the high dollar, policies must be economically responsible and support growth and jobs over the long term.

“Having an election date doesn’t give business or the community certainty or confidence. Only proactive and considered policy that addresses Australia’s economic circumstances will do that.”

[ top ]

Membership of B20 made public

Richard Goyder, Managing Director and CEO of Wesfarmers, will lead business engagement during Australia’s presidency of the Group of 20 in 2014.

Mr Goyder will head the Australian B20, which will bring together senior Australian business people to work with the government on the G20 policy agenda for Australia’s host year.

A statement issued by Prime Minister, Julia Gillard, said he was “exceptionally well placed” to work closely with Australian and international business to help deliver outcomes in a time of global economic uncertainty.

The B20 is the key business advisory body to the international economic forum and will include business leaders from all G20 economies.

Ms Gillard said hosting the forum would give local industry the unprecedented opportunity to help shape and drive the global economic agenda.

She said the government would work closely with the business community throughout 2013 and beyond as Australia formulated an agenda that would deliver on the G20’s core goal of promoting economic prosperity and jobs. Other business leaders who will serve on the Australian B20 with Mr Goyder are:

  • John Borghetti – Virgin Australia;
  • Jillian Broadbent – Clean Energy Finance Corporation;
  • Mark Burrows – Credit Suisse;
  • Cameron Clyne – National Australia Bank;
  • John Denton – Corrs Chambers Westgarth;
  • Elmer Funke-KupperASX Limited;
  • Jerry Harris – News Limited;
  • Gail Kelly – Westpac Banking Corporation;
  • Grant King - Origin Energy;
  • Nick Leeder – Google;
  • James MacKenzieMirvac and Yancoal Australia;
  • Pip Marlow – Microsoft;
  • Ian Narev – Commonwealth Bank of Australia;
  • Ann Pickard – Shell;
  • Heather Ridout – Reserve Bank of Australia;
  • Steve Sargent – GE Australia and New Zealand;
  • Tony Shepherd – Business Council of Australia;
  • Catherine Tanna – BG Australia;
  • David Thodey – Telstra;
  • Ian Thomas – Boeing Australia;
  • David Tudehope – Macquarie Telecom;
  • Hamish Tyrwhitt – Leighton Holdings;
  • Innes Willox – Australian Industry Group; and
  • Marius KloppersBHP Billiton.

Ms Gillard said the government regarded business input as essential to achieving the G20’s core goal of stronger global growth and job creation.

“We expect the Australian B20 will play an important role in working with the wider business community to develop pragmatic and practical suggestions for the G20 agenda.”

[ top ]

Conferences & Forums

Debt Markets Update Forums 2013

Seminar Outline:

  • Hear insights on the latest transactions including re-financings, pricing and recent developments in the markets
  • Receive an update on the key capital markets in a convenient half day information session
  • Undertake a cost benefit analysis of the various markets and opportunities for borrowers in 2013
  • Learn from a panel of corporate treasurers on recent transactions
  • Discuss with peers latest practice and regulatory changes, including new rules for issuing bonds to retail investors

Why you should attend:

  • Hear from highly experienced and expert debt capital markets participants
  • Get up-to-date in one half a day session on core professional and technical issues
  • Weigh the relative merits of a spread of corporate funding techniques, instruments and markets
  • Network with your peers, industry leaders, key service providers and FTA Board members.
  • Gain 4 CPD points

Deloitte Offices

CPD points - 4pts

Members $165.00 / Non members $330.00 / Group of 3 Non-Members $660.00

Adelaide book now

Brisbane book now

Melbourne book now

Perth book now

Sydney book now

[ top ]

Understanding Treasury Management - Courses by Treasury Training Services

Understanding Treasury Management

Melbourne (3 days) March 20-22

Sydney (3 days) May 13-15

Now in its 27thyear, this is Australia’s longest running Treasury Management course. The presenters have had line management experience assisting companies through the recent financial crisis. This course provides comprehensive training in the fundamentals of funding and liquidity management, foreign exchange and interest rate risk management and treasury operations. It also includes a computer-based FX Dealing Simulation game and the Treasury Pursuit game. Both games are designed to re-enforce the key learnings and maintain interest in a fun and competitive environment. You can also access the FX Dealing Simulation Game (which uses historical rates) on the TTS web-site.

These courses are both residential and non-residential. Please visit www.treasurytraining.com.au for a short video and to download the brochure (which includes the registration form). Enquiries to Ivan St Clair 0411 475 833.

[ top ]

Advanced Corporate Valuation Program with Prof Kevin Kaiser on INSEAD

In the simplest form, despite complex operating strategies, companies can create value by being efficient at what their core business is, as this usually results in a higher earnings multiple, or by acquiring other businesses for the right price or selling under-performing business units for better value than their worth in their current state.

The Finance and Treasury Association is pleased to be partnering with Invest in South Australia on the delivery of this Program and to offer FTA members a special registration fee. Financial FTA members will be eligible for a 10% discount to attend this prestigious event.

World renowned educator Kevin Kaiser, Professor Management Practice at INSEAD (Paris) will present his 3-day “Advanced Corporate Valuation Program” in Australia for the first time. Professor Kaiser will challenge traditional approaches to valuation and demonstrate how you can use valuation in daily decision making to remain competitive and ensure long term survival.

Program.

Who should attend?Bankers involved in advising corporate clients; corporate finance consultants/accountants; M&A professionals; private equity professionals; and people involved in investment decision-making or responsible for corporate finance strategy will benefit from this program.

Key benefits:

  • Learn how to distinguish value creation from value destruction in order to ensure long- term competitive success and survival;
  • Deepen your understanding of the “why we do it that way” behind the valuation concepts you practice daily;
  • Develop the ability to handle cross-border, emerging-market and other complicated valuations; and
  • Question common practices and identify common mistakes and misunderstanding.

Registration details. FTA members should quote their post-nominals to access the 10% discount.

One FTA member will be able to attend this event as a guest of Invest SA!

[ top ]

Membership

Planning to Renew or Apply for Membership?

Planning to renew or applying for membership? Remember all memberships are of a 'personal' nature.

The FTA asks all Members to please provide personal email, phone and address that should your work circumstances change the membership stays with you! Call 61 3 8534 5003 or email membership@fta.asn.au if you need assistance with changing or adding these details

[ top ]

FTA Members - Are you retiring? Or shortly planning to?

Members should be aware of the reduced rate for Retired Members. You might like to keep across what is happening in the profession and perhaps attend an FTA event from time to time or in the future you might again be involved directly in the treasury and financial risk management profession. Retired Rate is offered to current Australian based financial members of the Association. Please contact Naomi Braham/Membership CoOrdinator on 03 8534 5003 / membership@fta.asn.au to apply.

[ top ]

MFTA (Member Finance and Treasury Association) Upgrades to CFTP

Members are reminded they can request/apply for an upgrade from MFTA (Member Finance and Treasury Association) to CFTP (Certified Finance and Treasury Professional) at any time during their Membership year.

Criteria for CFTP is:

  • Have completed a relevant post-graduate degree in a finance related discipline, OR
  • Have at least 5 years experience in a finance role.
  • Commit to continued professional development (CPD) and obtain 20 points in any year

If you fill this criteria please phone or email Naomi Braham (Membership CoOrdinator) on 61 3 8534 5003 / membership@fta.asn.au to request an application form or return your renewal along with current CV/resume marked 'Upgrade to CFTP' and Naomi will contact you.

[ top ]

Publications

The Guide To Financial Risk Management 2013

FTA Members are entitled to a 20% discount off this publication.

OVERVIEW

Endorsed by the FTA (Finance and Treasury Association) this practical guide to key aspects of risk management helps you learn essential strategies for identifying and managing financial risk.

The Guide to Financial Risk Management clarifies how instruments work together to manage risk and puts Australian markets in perspective with world markets.

It is written exclusively for the Australian corporate and business market by an experienced corporate treasurer. You wil always be up-to-date with the latest developments and techniques with two updates every year.

BENEFITS

  • Authoritative guidance from a specialist in the field
  • Create strategies to identify and manage risks to your organisation, now and in the future
  • Train your staff in financial risk management practice in one succinct resource
  • Puts prices and movements into perspective
  • Assists accountants, lawyers and auditors to understand complex derivatives

KEY ISSUES COVERED

  • All major financial instruments traded in Australia
  • Updates from the Australian Securities Exchange
  • Current market data supplied from AFMA
  • Credit risk: counterparty, settlement and sector risk
  • Operational risk: system risk
  • Procedural risk: human error and fraud, education and hiring

Available through Thomson Reuters, interested members should contact the FTA Membership Manager, Naomi Braham at the National office +613 8534 5003 / membership@fta.asn.au for the FTA member promotional code.

To download a brochure and to order

[ top ]

The Asia Treasurer's Handbook 2013 - limited copies available!

We currently have a limited number of editions of "The Asia Treasurer's Handbook 2013" published by JPMorgan in conjunction with the ACT UK. To be available to Members Only by calling/emailing 03 8534 5003 / membership@fta.asn.au

As there is a LIMITED NUMBER AVAILABLE one copy only per Member (Local Delivery only)

[ top ]

Guide to APLMA investment Grade Syndicated Facility Agreement and Project Finance Documentation

Australian law firm Herbert Geer has produced a useful guide to the Asia Pacific Loan Markets Association Investment Grade Syndicated Facility Agreement (and project financing documentation), which addresses important issues including:

- the basis on which courts interpret financing documents;

- issues to be considered in financial ratios;

- key clauses for pass through of bank costs and fees;

- current market conditions and points for treasurers to make when negotiating their financing documents; and

- key issues for borrowers to consider about their business when looking at their financing documents.

If you would like a copy of the guide please click here (FTA Members only) or contact Andrew Venables, Partner, Herbert Geer via phone +613 9641-8712 or email: avenables@herbertgeer.com.au

[ top ]

Diary

18 February, 2013 Debt Markets Update Forum - Adelaide
Receive an update on the key capital markets in a convenient half day information session
20 February, 2013 Debt Markets Update Forum - Brisbane
Receive an update on the key capital markets in a convenient half day information session
28 February, 2013 Debt Markets Update Forum - Melbourne
Receive an update on the key capital markets in a convenient half day information session
March 5 - 7, 2013Advanced Corporate Valuation Program with Prof Kevin Kaser of INSEAD
World renowned educator Kevin Kaiser/INSEAD (Paris) wil present his 3-day program in Australia for the first time. See Conferences/Events for more details
6 March, 2013 Debt Markets Update Forum - Perth
Receive an update on the key capital markets in a convenient half day information session
15 March, 2013 Debt Markets Update Forum - Sydney
Receive an update on the key capital markets in a convenient half day information session
April 1 - 30, 2013IFRS 9 - New Hedge Accounting Rules
Save The Date for this event coming in April! 1/2 workshop with Reval & PWC
April 1 - 30, 2013How To Make A Better Presentation to Banks and Credit Rating Agencies
Save the Date for this event coming in April! Sydney & Melbourne only
May 1 - 31, 2013Essentials for Treasurers - Nationally
Save The Date for this event coming in May!
June 1 - 30, 2013Developing a Treasury Policy - Nationally
Save The Date for this event coming in June!
June 1 - 30, 2013Financial Reporting Update for Treasurers - Nationally
Save The Date for this event coming in June in conjunction with Ernst & Young