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Guidebook for CIPM Association members

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					                                        Jed Schneider, CIPM
                                        Executive Director, Performance Reporting
                                        New Jersey, USA




Guidebook for
CIPM Association members
                                            Mandatory Continuing
                                              Education Program



         Mark Fagan, CFA, CIPM
         Portfolio Manager
         Grand Cayman, Cayman Islands
Mandatory Continuing Education Program


Program Purpose
To succeed in a highly competitive and ever-changing marketplace that values expertise and
trustworthiness, investment professionals must be committed to furthering their knowledge, skills,
and abilities. Under the CIPM Association Code of Ethics, members must “maintain and improve
their professional competence.” The CIPM Mandatory Continuing Education (MCE) Program puts
this ethical obligation into practice by requiring certificants to engage in ongoing continuing
education as a condition of retaining the right to use the CIPM designation.

In order to meet the needs of our constituents most effectively and efficiently in their quest to best
serve their clients ethically and competently, we strive to provide a high-quality and
comprehensive suite of educational products. As part of this commitment, we recognize our
member societies as providers of quality programming at the local level and support them in their
efforts. We will also continue to partner, through the Approved-Provider Program, with third-party
organizations that aspire to meet our high standards in providing relevant educational products.

Additionally, CIPM certificants continue to have broad latitude in selecting activities to meet the
requirement. They may elect self-study or choose offerings from any provider in any language,
assuming the activity meets MCE Program standards and criteria. Guidelines shall be interpreted in
accordance with the general principle of protecting and enhancing the integrity of the CIPM
designation.

Continuing education questions may be directed to our dedicated mailbox:
ceprogram@cfainstitute.org

Dana Faris                                   Desi Allevato
Member Education Administrator               Member Products Coordinator
Tel: +1 (434) 951-5269                       Tel: +1 434-951-5629
Fax: +1 (434) 951-5370                       Fax: +1 (434) 951-5370
dana.faris@cfainstitute.org                  desiree.allevato@cfainstitute.org

This handbook will cover the following program aspects:

       Program Requirements
       Educational Standards and Criteria
           o Sample Non-Qualified Activities
           o Activities Requiring Special Consideration
       Educational Resources and Provider Branding
       Calculating Credit and Sample Reference Times
       Documentation
       Attestation and Compliance Review
           o Penalties for Non-Compliance
           o Reinstatement
       Appendix A: CIPM Association MCE Program Activity Documentation Form
Mandatory Continuing Education Program


Program Requirements
Engaging in lifelong learning demonstrates your dedication in serving employers and clients,
increasing your value in an ever-changing global investment industry.

In order to maintain and improve professional competence, CIPM certificants must complete 45
hours of qualifying activities within three years following the calendar year in which the right to use
the CIPM designation was awarded or renewed.

The following table illustrates the MCE timeline for candidates who earn the right to use the CIPM
designation in calendar year 2007, 2008, 2009, or 2010.

 Certificate        First MCE           First MCE              First Cycle          Second MCE
  Awarded          Reporting         Reporting Cycle         Documentation           Reporting
                   Cycle Start          End Date              Must Be Kept          Cycle Start
                       Date                                       Until                Date

January 2007     1 January 2008     31 December 2010        31 December 2011       1 January 2011

 June 2007       1 January 2008     31 December 2010        31 December 2011       1 January 2011

January 2008     1 January 2009     31 December 2011        31 December 2012       1 January 2012

 June 2008       1 January 2009     31 December 2011        31 December 2012       1 January 2012

January 2009     1 January 2010     31 December 2012        31 December 2013       1 January 2013

 June 2009       1 January 2010     31 December 2012        31 December 2013       1 January 2013

January 2010     1 January 2011     31 December 2013        31 December 2014       1 January 2014

 June 2010       1 January 2011     31 December 2013        31 December 2014       1 January 2014



Note: The three-year MCE cycle begins once the certificate is awarded, not when the Expert
examination is passed (e.g., if an individual passes the Expert exam in 2007 but is not awarded the
certificate until 2008 due to work experience requirements, their first MCE cycle would begin 1
January 2009).

Educational Standards and Criteria
Certificants have broad latitude in selecting any continuing education activities from any provider in
any language or format they deem individually appropriate, relevant, and valuable.
Mandatory Continuing Education Program


Examples include, but are not limited to, the following types of activities:

         Self-study (i.e., reading, researching, webcasts, etc.)
         Employer-based (i.e., in-house training)
         Educational opportunities sponsored by CFA Institute, member societies, and third-party
         Approved Providers (please see the Educational Resources and Advertising section for more
         details)
         Relevant educational activities offered by unaffiliated organizations/providers in any
         language/format

Educational activities should have an academic, technical, or sector/industry focus and should be
concept-based rather than data- or information-based. Activities should also provide professionally
applicable knowledge that is not targeted toward the layperson or general public audience. Specific
company/product marketing presentations, software training, and assorted “sales pitches” are not
eligible for continuing education credit.

Unless the activity is prequalified by CFA Institute,1 certificants should use the following criteria to
determine the eligibility of any continuing education activity in which they are engaged:

         The activity should be educational in nature and geared toward maintaining or increasing
         the knowledge, skills, and abilities of an investment professional and either
         Relate to one or more learning topics derived from the CFA Institute Global Body of
         Investment Knowledge (GBIK™), or
         Contribute substantively to the certificant’s development as an investment performance
         professional.

      For ease of reference, the broad topical areas are:

         o   Alternative Investments
         o   Behavioral Finance
         o   Corporate Finance
         o   Derivatives
         o   Economics
         o   Equity Investments
         o   Financial Statement Analysis
         o   Fixed Income
         o   Leadership, Management, and Communication Skills
                  Leadership and mentoring skills
                  Strategic Planning
                  Adapting to change
                  Firm Management
                  Presentation and negotiation skills
                  Client relationship management skills
                  Investment industry
         o   Performance Measurement and Evaluation
         o   Portfolio Management
         o   Private Wealth Management

1
    Please see the Educational Resources and Advertising section for more details.
Mandatory Continuing Education Program


       o   Quantitative Methods
       o   Risk Management
       o   Standards, Ethics, and Regulations (SER)
                Applicable Laws and Regulations
                Professional Standards of Practice
                Ethical Practices and Guidelines

Sample Non-Qualified Activities
     Reading publications intended for the layman or non-professional investor (e.g., The Wall
     Street Journal, Financial Times, The Economist, Barron’s, etc.)
     Reading CFA Digest summaries (original source articles do qualify)
     Software training sessions
     Commercial product training sessions
     Conferences, seminars, forums, lectures, or other live events intended for the layman or
     non-professional investor
     Employer-sponsored events with client-marketing focus in which educational content is
     directed at client (layman’s level of rigor)
     Teaching, lecturing, or presenting (“podium time” is ineligible; however, time spent
     reading/preparing to present is eligible)
     In-class time for exam preparation (e.g., CFA or CIPM preparatory classes, etc.)
     Forecast luncheons or dinners where the presentation is simply a forecast or the event is
     purely social in nature
     Presentations that are only on a specific company and/or its products
     “Street research” primarily addressing a specific company

Activities Requiring Special Consideration
Some activities may qualify for MCE credit dependent upon the circumstances surrounding the
activity and one’s unique professional responsibilities. Judgment is required in applying the criteria
used to determine whether an activity is eligible for credit.

Forecast luncheons and dinners, company presentations, street research, and similar activities
should be assessed on an individual basis to determine if the activity meets program standards and
criteria outlined previously.

Example: Forecast dinners
      Qualified activity: The presentation includes models and other educational content beyond
      the actual forecast (only the educational portion of the event is eligible for credit)
      Non-qualified activity: the presentation is only a forecast or is purely social in nature

Example: Company presentations
      Qualified activity: the presentation includes substantive information on an industry, not
      just a single company (i.e., a detailed explanation of industry trends and the implications for
      valuing companies within that industry)
      Non-qualified activity: the presentation is on a specific company and/or its products
Mandatory Continuing Education Program


Example: Street research
      Qualified activity: a report providing substantive educational material with broad
      application, such as “Interpreting Economic Indicators,” “Understanding Tracking Error,” or
      “Valuing Structured Debt Securities”
      Non-qualified activity: a report that addresses a particular company, such as “Teleflex
      Incorporated: Initiating Coverage With a Hold”

Example: Individually relevant activity
      Qualified activity: a GIPS verifier attends a conference on “Sampling Techniques for
      Auditors”
      Non-qualified activity: a certificant attends a conference on “Networking Techniques for
      Job-Seekers”

       Qualified activity: a certificant with responsibility for the integrity of performance
       measurement input data attends a conference on “Portfolio Accounting”
       Non-qualified activity: a certificant attends a conference on “Accounting for Property,
       Plant, and Equipment”

Educational Resources and Provider Branding
CFA Institute is committed to providing a high-quality and comprehensive suite of lifelong learning
products to meet the diverse needs of our constituency. Realizing that individual members’ needs,
learning styles, and preferences differ, we have complemented our own product offerings with the
Approved-Provider Program. This program was designed to provide an expanded number and
variety of relevant educational opportunities available to our constituency at the local level through
partnerships with our member societies and select third-party organizations.

All CFA Institute member societies are eligible to participate in the Approved-Provider Program, and
many societies choose to promote their eligible educational events with the CFA Institute CE
Qualified Activity logo, which signals that attendance at the program will qualify for continuing
education credit. If applicable, check with local society leadership to determine if they are an active
participant in the Approved-Provider Program. Additionally, we also partner with select third-party
organizations through the Approved-Provider Program. All participating providers are well-
established and respected within the investment industry, offer educational programming and/or
products relevant to the investment practitioner, and pledge to uphold our rigorous standards.

Third-party organizations in the Approved-Provider Program are admitted at either a provider- or
program-level. Provider-level participants offer both breadth and depth of relevant offerings and,
as with our member societies, receive “blanket approval” of their full suite of educational offerings.
CIPM certificants may locate third-party provider-level participants in an online Provider Directory
on our website. Provider-level participants are eligible to use the CFA Institute CE Approved
Provider logo and the CE Qualified Activity logo in their advertisements.

Program-level participants have relevant educational offerings that are typically of a limited
number or scope (e.g., niche topic, geographical area, etc.) and receive credit approval on a
Mandatory Continuing Education Program


program-by-program basis. Program-level participants are eligible to use the CFA Institute CE
Qualified Activity logo in their advertisements for all prequalified programs.

Certificants that attend eligible events offered by a member society or approved third-party
provider should ensure the details of the activity, including the recommended credit amount
advertised by the program sponsor, are documented.2

CFA Institute, our member societies, and third-party organizations participating in the Approved-
Provider Program use similar branding to signify that a particular program is eligible for continuing
education credit.

                                The CFA Institute CE Qualified Activity logo is used in
                                advertisements by CFA Institute, our member societies, and all
                                levels of approved third-party providers. This logo signifies that a
                                particular program is eligible for continuing education credit, and
is accompanied by a statement that indicates the provider name and amount of credit for which the
program is eligible.

                                   The CFA Institute CE Approved Provider logo is used by third-
                                   party organizations who are provider-level participants in the
                                   Approved-Provider Program. This logo signifies the provider’s
                                   status/relationship to CFA Institute. Provider-level participants
may also choose to advertise individual programs with the CFA Institute CE Qualified Activity logo,
but CIPM certificants should be assured they can document credit for virtually any educational
program offered.

Calculating Credit and Sample Reference Times
      1 MCE credit hour is equal to one hour (60-minutes) of educational activity.

         Credit hours can be allocated in half-hour increments (rounded to the nearest half hour).

         As a general rule, no single self-study activity may earn greater than 20 MCE credits (e.g.,
         reading a single textbook should qualify for no more than 20 credits).

         Certain CFA Institute prequalified activities and activities with standard reference times may
         earn more than 20 credits. Educational programs offered by CFA Institute and/or under the
         Approved-Provider Program have a predetermined number of eligible credits. When
         documenting MCE credit, certificants should refer to the number of hours declared eligible
         by the program sponsor.

         For activities that are not prequalified or for which standard reference times are undefined
         (see below chart for examples), certificants should record the actual duration of the
         educational portion of the activity, up to the maximum of 20 credits.



2
    Please see the Documentation section for more details.
Mandatory Continuing Education Program


                 Activity Type                                     Credit Earned
Live events (e.g., conferences, seminars,          Document credit based on educational time
forums, lectures, etc.)                            dedicated to the activity
University course applicable to the investment     Document a maximum of 20 credit hours per
professional                                       course
Web-based course applicable to the                 Document credit based on educational time
investment professional                            dedicated to the activity
In-house employee training sessions relevant       Document credit based on educational time
to the investment professional                     dedicated to the activity
Mandatory continuing education training            Document credit based on educational time
completed for other investment-related             dedicated to the activity
designations
Volunteer participation on selected CFA            CFA Institute staff assigns credit based on
Institute and/or CIPM Program committees           participation
(e.g., Exam Review, GIPS, etc.)
Passing or preparing for investment-related        Document a maximum of 20 credit hours per
regulatory or designation exams (e.g., NASD,       designation, or track reading/preparation time
FSA, etc.)                                         using actual clock time or the recommended
                                                   reading calculations below*
Passing Level I, II, and/or III of the CFA exam    Document a maximum of 40 credit hours for
                                                   each exam level
Viewing/listening to webcasts and/or podcasts      Document credit based on educational time
relevant to the investment professional            dedicated to the activity (CFA Institute
                                                   webcasts/podcasts include recommended credit
                                                   hours)
Readings relevant to the investment                Document credit for reading based on actual
professional (e.g., journal articles, textbooks,   clock time, or the recommended reading
etc.)                                              calculations below*
                                                   (CFA Institute publications include
                                                   recommended credit hours)
Preparatory readings for teaching, lecturing,      Document credit for reading based on actual
presenting, or article writing (“podium time” is   clock time, or the recommended reading
ineligible)                                        calculations below*
Reviewing articles/books and/or abstracting        Document credit for reading based on actual
articles written for investment professionals      clock time, or the recommended reading
                                                   calculations below*

*For educational activities such as reading and reviewing content, certificants may calculate credit
hours earned by using either of the following methods:

       Clock time: Allocate actual time spent engaged in the educational activity
       Generalist readings: Allocate 2 minutes per page
       Specialized/highly technical readings: Allocate 4 minutes per page
Mandatory Continuing Education Program


Documentation
For each educational activity, the certificant must complete and retain the MCE Activity
Documentation Form.3 The form is available on our website and in Appendix A.

CIPM certificants must retain completed MCE Activity Documentation Forms for one year after the
end of the three-year cycle to which they pertain, and credits earned in excess of the requirement
cannot be carried forward to the next cycle.

Please note that certificants do not need to send any completed documentation forms to CFA
Institute unless they are notified of selection for compliance review.

The following table illustrates examples for retaining documentation.

    Certificant’s MCE     Sample Activity        Certificant’s MCE       Documentation Must
    Cycle Start Date        Takes Place           Cycle End Date            Be Kept Until
     1 January 2008        23 March 2009         31 December 2010          31 December 2011
     1 January 2009       15 October 2010        31 December 2011          31 December 2012
     1 January 2010       12 January 2011        31 December 2012          31 December 2013
     1 January 2011        5 August 2012         31 December 2013          31 December 2014

Note: Certificants are strongly encouraged to complete the MCE Activity Documentation Form as
soon as possible after completing each educational activity.

Future improvements to the documentation component of the MCE Program include the release of
an online MCE Diary. Once available, this resource tool will enable participants to easily track and
review their educational activities without maintaining paper-based forms.

Attestation and Compliance Review
Satisfying the MCE requirement is a condition of retaining the right to use the CIPM designation.
Certificants must complete the MCE Program requirements as of the end of each three-year cycle.
In line with the membership renewal process following the end of the three-year cycle, certificants
must attest to fulfilling the requirements for the previous cycle.

For example, individuals who are awarded the CIPM certificate in 2007 must complete the MCE
requirements as of 31 December 2010. They would attest to completing the requirements for that
cycle during the 2011 membership renewal process.




3
  Certificants who are also members of CFA Institute may utilize the online CE Diary to track
completion of educational activities for both continuing education programs. Dual members will
also receive automatic entry of credit for their participation in prequalified programs offered by CFA
Institute, member societies, and/or third-party Approved Providers.
Mandatory Continuing Education Program


In order to support and validate the integrity of the MCE Program, all certificants may be subject to
periodic compliance reviews of their documentation. The review process will include the steps
outlined below.

       Certificant’s Obligation: Upon notification of selection for a compliance review, the
       certificant has 30 business days to supply documentation of MCE activities for the most
       recent three-year MCE cycle.
       Review of Documentation: The supplied documentation will be reviewed to ensure
       compliance with MCE Program requirements. If necessary, the certificant may be asked to
       supply additional documentation during the course of the compliance review.
       Compliance Review Status: Upon completion of the review, certificants will receive one of
       the following statuses:
       o Successful completion: All documentation is acceptable, and the compliance review is
           approved/concluded.
       o Insufficient/disallowed credits: The certificant is given 90 business days to substitute
           ineligible or missing credits. Any credits accrued during the 90 business days to satisfy
           the ineligible/missing credits cannot also be counted in the then-current MCE cycle.
       o Professional Conduct violation: Unsupported, misstated, or fraudulent reporting of
           credits is a violation of the CIPM Association Code of Ethics and Standards of
           Professional Conduct. Such reporting may be grounds for disciplinary action and will be
           handled by the CIPM Association Professional Conduct Program.

Penalties for Non-Compliance
The right to use the CIPM designation is suspended as of the end of any reporting cycle in which a
certificant does not meet all conditions and requirements of the CIPM Association MCE Program.
Accordingly, CIPM certificants who are not in compliance must cease using the CIPM designation as
of the end of the MCE cycle. For example, individuals who are awarded the CIPM certificate in 2007
but do not meet all MCE conditions and requirements for the three-year reporting cycle ending 31
December 2010 must not use the CIPM designation after 31 December 2010.

Reinstatement
Once the right to use the CIPM designation has been suspended due to failure to meet the
conditions and requirements of the MCE Program, the individual must meet all outstanding
requirements for the most recent MCE reporting cycle and submit acceptable documentation of the
educational activities to the CIPM Association. They must not resume using the CIPM designation
until they are notified by the CIPM Association in writing that their right to use the designation has
been reinstated.
Mandatory Continuing Education Program


        Appendix A: CIPM Association MCE Program Activity Documentation Form

Full Name:                                         CIPM ID:



   1. Provide details of the educational activity (include details such as: title, author/presenter,
      event date, event location, etc.)




   2. Complete either Section A or Section B:
      A. To which topic(s) in the GBIK™ does the activity pertain?
      (http://www.cfainstitute.org/memresources/education/index.html)




       B. Briefly state how the activity contributed to your development as an investment
          performance professional.




   3. Activity Completion Date (DD, MM, YYYY format):

   4. Total credit allocated for this activity:

Note: Print and retain this form for one calendar year following the end of the three-year MCE
cycle in which the activity took place. Please note that certificants do not need to send any
completed documentation forms to CFA Institute unless they are notified of selection for
compliance review.

				
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