Securities Market Regulation Certification Programme (Based on Series 79)

Brief

1. Debt or equity offerings through public or private placement.

  • Pricing of securities in the debt and equity offerings
  • Origination, which deals with equity capital markets and debt capital markets
  • Underwriting
  • Marketing
  • Structuring
  • Syndication
  • Managing the allocation and stabilisation activities of offerings

2. Mergers, acquisitions and financial restructuring

  • Tender offers
  • Selling asset
  • Corporate reorganisation or divestitures
  • Transactions involving business combinations, which might include rendering opinions solvency and fairness opinions

Programme Details

Certificate:   BIBF Securities Market Regulation Certification Programme (Based on Series 79)
Duration:      5 Days (30 hours) - Sunday to Thursday from 8:00 am – 3:00 pm
Assessment:  3 Hour multiple choice based examination (on the following Saturday), consisting of 100 multiple choice                            questions

The course will be beneficial to all capital market participants engaged in advisory and investment banking activities including advice on raising capital/debt, syndications, structured financing, private placement, mergers and acquisitions, offering of securities, listing and all related capital market activities.

  • Candidates must have completed a bachelor’s degree in Banking & Finance, Accounting, or a Business related field from a recognised university
  • Proficiency in English Language

The exam focuses on four different areas:

  1. Collection, Analysis and Evaluation of Data
  2. Underwriting/New Financing Transactions, Types of Offerings and Registration of Securities
  3. Merger and Acquisitions, Tender Offers and Financial Restructuring Transactions
  4. General Securities Industry Regulations Before introducing this Securities Market Regulation certification the more popular exam (the Series 7) was required to be a general broker, but some representatives found they were only performing investment banking activities, which is a small portion of the Series 7 exam. This certification programme was developed to address this need. Staff members who are dealing in either of the two main areas of activities shown below are required by the Central Bank of Bahrain (CBB) to take the Securities Market Regulation Certification Programme.

BD 950/-

This includes:

• BIBF training & mentoring sessions
• Class lecture handouts
• Practice quizzes
• Exam fees
• Programme text book

Syllabus in Brief

  • Registration Requirements & Qualification Examinations
  • Securities Exchange Act of 1933 & 1934
  • Insider Trading
  • Reporting Requirements for Public Companies 10-K and 10-Q
  • Registration Statements
  • Financial Statements: Balance Sheet, Income Statement, Cash Flow Statement
  • Special Issues in Accounting: Depreciation, Investments in Stock, Minority Interest, Stock Splits, Dividends, Channel Stuffing
  • Valuation Metrics: Turnover Ratios, Liquidity Ratios, Profitability Ratios, Capital Structure Ratios
  • Valuation Models: Discounted Cash Flow (DCF), Capital Asset Pricing Model (CAPM), Dividend Growth Model (DDM)
  • Relative Valuation Measures: P/E Ratios using Trailing & Leading EPS, PEG Ratios, Price-to-Sales, Price-to-Book
  • Free Cash Flow to the Firm, Free Cash Flow to Equity, EBITDA, Enterprise Value, Terminal Value
  • Weighted Average Cost of Capital (WACC): Cost of Debt and Equity
  • Distinction between Mergers and Acquisitions
  • Types of Buyers: Strategic and Financial Buyers
  • M&A Analytic Tools: DCF Analysis, Precedent Transactions Analysis, Comparable Companies Analysis
  • DCF Valuation: Intrinsic Value, Free Cash Flow (FCF) Valuation, MVA and EVA
  • Comparable Companies Analysis: Selecting the Target Company, Spread Key Statistics, Key Trading Multiples, Valuation Implied by EV/EBITDA and P/E, Pros and Cons
  • Precedent Transactions Analysis: Screening for Comparable Acquisitions, Spread Key Statistics, Key Trading Multiples, Pros and Cons
  • LBOs (Leveraged Buyouts): Characteristics of a Strong LBO Candidate, Economics of LBOs, Primary Exit Strategies, LBO Financing
  • Hostile Deals: Takeover Defenses
  • Distressed Sellers: Chapter 7 (Bankruptcy), Chapter 11 (Reorganisation)
  • Tender Offers
  • Regulation M-A, Term Sheet
  • Types of Securities : Equity & Debt
  • Common Stock: Shareholder Rights, Authorised and Issued Stock, Voting, Ex-Dividend Rules
  • Bonds: Value, Yield, Call Provisions, Interest Rate Risk
  • Preferred Stock: Cumulative and Non-Cumulative Preferred Stock, Callables & Convertibles
  • Convertible Bonds: Conversion Ratios, Parity Value, Arbitrage
  • Rights and Warrants
  • Options: Call and Puts
  • Option Strategies: Covered Calls, Hedging with Puts
  • Futures and Forwards
  • Module OFS (Offering of Securities) – CBB Rulebook Volume 6
  • Module TMA (Takeovers Mergers and Acquisitions) – CBB Rulebook Volume 6
  • Guidelines on Insiders
  • CBB Debt Securities Guidelines
  • CBB Disclosure Standards
  • Types of Issuer Organizations: S Corporation, Partnership, REITs
  • SEC Act of 1933: Registration Period, Due Diligence, Waiting Period, Post Effective Period
  • Prospectus Delivery Requirements
  • Sarbanes-Oxley Act, Exempt Securities & Transactions, Private Placements & Regulation D
  • Underwriting Securities: Firm Commitment, Best Efforts, All-or-None
  • Distribution of Securities: Selling Groups and Syndicates, Green Show Clause, Stabilising Bid
  • Fiscal and Monetary Policy, Keynesian and Supply Side Economics
  • Federal Reserve Bank Tools of Monetary Policy
  • Exchange Rate Risk
  • Growth versus Value Investing
  • Review

Partners

The Central Bank of Bahrain (CBB) is a public corporate entity established by the Central Bank of Bahrain and Financial Institutions Law 2006. It was created on 6th September 2006. The CBB is responsible for maintaining monetary and financial stability in the Kingdom of Bahrain. It is also the single integrated regulator of Bahrain›s financial industry.

The Investment Representative Programme (Based on Series 7) designation, certified and made mandatory by the Central Bank of Bahrain (CBB) and offered by BIBF, mirrors the FINRA (Financial Industry Regulatory Authority) Series 7 certification required by professionals trading investment products in the United States. The CBB requires that all professionals involved in the trading of investment products in Bahrain be certified as Investment Representatives.

Series 7 provides comprehensive treatment of a broad range of products including equity securities, corporate debt securities, government bonds, municipal bonds, options and mutual funds. The programme also provides a comprehensive treatment of investment banking, securities laws and regulations, trading procedures, margin and customer accounts with a specific emphasis on Bahrain and the structure of GCC markets.

Candidates seeking the designation of an Investment Representative must pass a two part examination to achieve the certification.

For more information visit:
www.cbb.gov.bh

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