MCT/AMCT & ICM EXAM RESULTS A question on policy will always appear CHRIS BUNTON, ADRIAN BUCKLEY AND CATHERINE ADAIR-FAULKNER ANALYSE THE RESULTS OF THE APRIL 2007 SITTING OF THE MCT, AMCT AND ICM EXAMINATIONS. INCLUDED IS A LIST OF NAMES OF ALL STUDENTS WHO PASSED. MEMBERSHIP EXAM ASSOCIATE EXAM The pass rates for this sitting were 51% in Paper VII, 58% in Paper VIII Foundation level The foundation level comprises four papers: and 61% in Paper IX, with an overall pass rate of 46%. It was Financial and Management Accounting, Economics and Statistical encouraging to see the pass rate in Paper VII above 50%, but those in Analysis, Corporate Tax, and Business Law. the other two papers were in the lower part of their historic range. A In the Accounting paper, the standard of scripts continued to show surprising number of candidates scored very poorly in all papers, and an improving trend. Of the 84 who sat the exam, 54 were awarded a were clearly not yet equipped to take the exams, which depressed pass, giving a pass rate of 64%, a little up on the last sitting’s 62%. the pass rates. Pleasingly, though, most of the referral candidates had But there was obviously a long tail, reflective of a fair number of ill- put in the work to pass the qualification. prepared candidates – 13 scored 35 or less. There were several strong The main case in Paper VII revolved around an international drinks scripts, with 17 candidates scoring 65% or more, eight of whom company. Where the weaker candidates stumbled was in translating scored 72% or more and were awarded distinctions. Overall their knowledge of the theory into quantified proposals, and putting achievement was better than the last two sittings. that analysis into the context of the company in the case. The In the Economics and Statistical Analysis paper, the standard company had stable cashflows, so could carry significant debt – of scripts was generally good. Of the 60 candidates who sat the a crucial point that some candidates failed to spot. Part of the exam, 37 were awarded a pass, six of whom were classified as question asked for a quantified distribution policy, and some distinction level. The pass rate, at 62%, was lower than immediately candidates were unable to turn their knowledge of the theory into preceding sittings. coherent specifics. In the Corporate Tax paper, 62 candidates presented themselves, In Paper VIIIA the main case concerned the financing of a takeover. and 42 passed, five of whom achieved distinction status. This result Weaker candidates missed the fact that the deal itself was marginal. was similar to the immediately previous sitting. At this level, candidates must reach their own, independent opinions In the Business Law paper, 75 candidates sat and 48 passed, giving of propositions rather than assume that what they are given makes a pass rate of 64%. There were six distinctions. The examiner noted economic sense. Paper VIIIB, based around the risks of a large mining an improvement on recent sittings. company, was generally well handled. The section that candidates found most difficult was the interrelationship between business risks Associate level There is a choice of papers to attain Associate level. and financial risks, but there was enough good performance Some may be sat as a one-off without aiming for Associate status, elsewhere in the paper for a respectable pass rate. notably the Financial Mathematics and Modelling paper and the Risk In Paper IX, the main shortfall came where candidates were asked Management for Pensions exam. Other than these, the papers to develop financial policies. Regurgitation of the issues is not reviewed here are Liquidity Management, Risk Management, and enough; application to the case was what was required. A question on Corporate Finance and Funding. policy will always appear in the exams. The Liquidity paper was sat by 126 candidates, 77 of whom passed, Where weak candidates fell short, it was generally on the ability to giving a pass rate of 61%. There were nine distinctions. Too many apply theory coherently to real situations. The principle is the same in failing candidates displayed a lack of comfort with cashflow all papers. Start with the business context, use that to inform your forecasting and how to draw conclusions from it. assessment of the risks of the situation in the case and then use In the Risk Management paper, 131 candidates presented themselves that insight to derive the implications for the task in hand. If asked and 65 passed, giving a pass rate of 50%. There were a fair number of to quantify your answer, do so. In real life, your board will demand outstanding papers and five distinctions were awarded, but far too no less. many candidates performed badly on the biggish first question. As in previous sittings, there were some excellent scripts and those In the Corporate Finance and Funding paper, 128 sat and 58 passed who passed can be proud of their achievements. – a pass rate of over 45% compared with 51% last time. In the Fast 42 THE TREASURER JULY | AUGUST 2007 E XAM RESULTS 1998-2007 XAM RESULTS Pass rates (%) Pass rates (%) Pass rates (%) 100 100 60 20 40 80 100 60 20 40 80 O 0 60 20 40 80 O 0 c 0 c t t 9 9 A 8 A 8 p MCT p ICM r r 9 Apr 06 9 O 9 AMCT O 9 c Oct 06 c t t 9 RMFMAA CFFpr ESA 07 CFF FT CT FMM BLLM RMP 9 A 9 A 9 p T p r M AFRM CFMOVERALL Apr 06 r 0 0 O 0 Oct 06 O 0 c c t Apr 07 t 0 0 A 0 A 0 p Apr 06 p r r 0 Oct 06 0 O 1 O 1 c Apr 07 c t t 0 0 A 1 Apr 06 A 1 p p r Oct 06 r 0 0 O 2 Apr 07 O 2 c c t Apr 06 t 0 0 A 2 Oct 06 A 2 p Apr 07 p r : r 0 RATES PASS 0 O 3 Apr 06 O 3 c c t Oct 06 t 0 0 A 3 Apr 07 A 3 p p r r 0 Apr 06 0 O 4 O 4 c Oct 06 c t t 0 Apr 07 0 A 4 A 4 p Apr 06 p r r 0 Oct 06 0 O 5 O 5 c Apr 07 c t t 0 Apr 06 0 A 5 A 5 p Oct 06 p r r 0 Apr 07 0 O 6 6 c n/a O t ct 0 Oct 06 0 A 6 A 6 p Apr 07 p r r 0 0 7 7 and content of style the uniformity Given this component. to should nowbepaid element this compulsory to pass the absoluterequirement Given fails. this sitting. distinctions in strong five awarded examination board the encouragingly, October 2006sitting.More the during achieved highl sessionsremain tuition andrevision past papersandattendanceat pr thorough the highpassratereflects Again, distinctions. no were there the coursepassed,but on the 10participants of Eight paper. Pensions submitting pr working and the course,including throughout preparation thorough distinctions. rate Track. the Fast on three paper and FinanceandFunding Corporate the distinctions in two were There sittings. the previous than of 49%,muchbetter passed, apassrate qualified accountants,98studentssatand48 for paper, Track A Chris Buntonis within the context ofthe case studies. rate culminatinginapass out-turn, disappointing a April 2007reflects INTERNA the opportunity to revise these key ICM elements and consider them ICMelementsandconsider these key to revise opportunity the of abank’. systems, management basiccash common knowledgegapsmanifestedregarding some innovation, treasury of cashmanagementand knowledge this trend. to doubt becontributing will no technique papers, poorexamination wwwtreasurers.org Management ExaminationBoard. Cash the International of Chairman is Adair-Faulkner Catherine DEMAND NO LESS. SO. INREALLIFE,YOURBOARDWILL HAND. IFASKEDTO QUANTIFY,DO THE IMPLICATIONSFORTASKIN THEN USETHAT INSIGHTTODERIVE THE SITUATIONINCASEAND YOUR ASSESSMENTOFTHERISKS CONTEXT, USETHATTOINFORM PAPERS. STARTWITHTHEBUSINESS THE PRINCIPLEISSAMEINALL drian Buckleyis eparation b Ov The results reflect in part a frustratingly high number of Question 1 of highnumber frustratingly inparta reflect The results for the RiskManagement of the secondsitting April 2007saw the pass inFinancialMathematics andModelling, Certificate the In With the recent launch of the revised manual,studentsnowhave the revised of launch the recent With demonstrated animproved students while many Interestingly, was 80%, with 28 out of 35 candidates passing and five achieving five of 35candidatespassingand out with 28 was 80%, of y recommended. erall, passrates only 49%. This is in stark contrast to the gratifying61% to This isinstarkcontrast 49%. only of documentary collections,andev TIONAL the examination,itisevident This pass rate is attributed to candidates’systematicand This passrateisattributed for y some ogr disciplines such as payment factories, payment disciplines suchaspayment Chairman of the MCTExamination Board. of Chairman this mct/amct &icm ess Chairman CASH MANA question tests andattending v wer ery committedand e good.R JULY |AUGUST2007 JULY of throughout all the ICMexamination all throughout the GEMENT EXAM AMCT ExaminationBoard eference to eference suggested solutions to tuition. that r en well-qualified candidates. the EXAM RESULTS enewed attention THE TREASURER fundamental ‘duties 43 mct/amct & icm EXAM RESULTS EXAM RESULTS THE ASSOCIATION OF CORPORATE TREASURERS WISHES TO EXTEND ITS CONGRATULATIONS TO THE FOLLOWING PEOPLE WHO HAVE PASSED EXAMINATIONS. MCT PASS Distinctions Paper VII I Paper VIII I Paper IX I Lesley Flowerdew WS Atkins plc Benjamin Peacock Vodafone Group I Ben Gothard Habitat Matthew Purcell Barclays Capital I I James Harvey Rolls-Royce plc I Andrew Rowlands British American Tobacco plc I I Andrew Life HSBC Bank plc I I I Philip Scott Vodafone Group Services Limited Richard Llewellyn Rio Tinto plc Matthew Shelley Tesco plc Jane Maguire Nortel Networks (UK) Ltd Christopher Smith Nomura International plc Kerri Maharaj RBTT Bank Limited Karen Toh Shell International Ltd I I Michelle Mitchell Deloitte