Association of Investment Advisers and Portfolio Managers

Membership Conversion Syllabus

Part 1
Code

IAPM 001 Quantitative Techniques and Business Statistic

IAPM 002 Economics (micro and macro economics)

IAPM 004 ICT and Information Management

IAPM 005 Marketing of Financial Services

Intermediate Stage Courses

IAPM 006 Business Mathematics

IAPM 007 Financial Accounting

IAPM 008 Pensions and Life Insurance

IAPM 009 Trusteeship (corporate & individual trust)

Final Stage Courses

IAPM 010 Taxation

IAPM 011 Investments and Portfolio Management

IAPM 012 Corporate Finance

IAPM 003 Business Law

Examination
Part 2

IAPM 001 Quantitative Techniques and Business Statistic

Statistics: Measure of central tendency: mean, median, trimmed mean,

interpreting measure of central tendency: data collection and presentation
techniques, data homogeneity, rennin and weighted averages; measures of
dispersion: range, standard deviation, root mean square. Correlation and
regression analysis, time series, trends and index numbers, focasting
techniques, test of hypotheses, probability theory: random experiment,
sample space, sample points, measurement, determination of simple
probability. Quantitative Techniques: Derivatives, integrals and partial
derivative, Fundamental theorem of integral calculus, finite and infinite
sequences and series, matrices, determinants, finite differences, interpolation
with equal intervals, central difference formulae, summation, unconstrained
optimization: functions of one variables, maximum and minimum, binary
search, convexity.

IAPM 002 Economics (micro and macro economics)

Microeconomics: Production system: resources, technology, production

possibilities, comparative advantages efficiency. Concept of demand and
supply: determinant of demand and supply, relationship between change in
quantity, demand and supply. Elasticity in economic terms; factors affecting
location of industry; Economic factors affecting production, market theory
and concept, market structure; Growth strategies of firms: horizontal,
vertical, diversified growth, mergers and acquisitions, merit and demerit.
Macroeconomics: National economy: Principles, of flow of economy
system, National income, determinant and measurement, concept of savings
and consumptions, investment principles: determinants, indicators,
accelerators and choices, inflation theory: causes, effect on economy, control
mechanism; Financial system: money markets, capital markets, instruments
traded in financial markets, market participants; Monetary policies and
economy, international trade: types of trade, balance of trade and payment
globalization and integration of economy.

IAPM 004 ICT and Information Management

Computer definition including classification based on hardware and

operation. Hardware components input and output devises, storage system,
software configuration, operating system, classification of software,
protocols and standard, General concept of communication, potential risk of
communication supported by IT. Information system management:
communication network and system development life cycle. Data processing
organization, administration and access method; the roles of IT in: front
office; pre and post settlement phase of securities; impact of IT on financial
control; IT Managements, Managing business change; IT control system:
approaches to risk management, IT governance issues, setting IT objectives,
IT services procurement; IT asset safe guarding, system evaluation
procedural controls.

IAPM 005 Marketing of Financial Services

Introduction to marketing and key marketing concepts, market planning

process, strategic marketing techniques, market analysis and development
models: marketing mix variables – product, promotion, price, place people,
process and physical evidence; consumer and organization buying behavior,
market segmentation – target and positioning strategies, marketing
segmentation tools, concept of pricing decisions for financial products,
promotion mix and evaluating their importance in promotion strategies of
FSI bases for financial market segmentation, positioning strategies for
financial products; developing new products in a new market environment,
promotion of products and promotion methods; concept of service
marketing, distinction between physical and service product marketing,
components of service marketing - financial products marketing – banking,
insurance, credit and debit cards, pension, securities, brokerage etc;
electronic marketing system (e-marketing): concept, techniques, types of e-
marketing, market tools, e-market characteristics merits of e-marketing,
internal and external environmental challenges of e-marketing; e-marketing
of financial system.

Part 3

IAPM 006 Business Mathematics

Set theory; concept and definition; types of set – null, subset, finite,
universal and equal set. Cardinality: number of elements in a set and
complement. Operations; union, intersection, differences and complement.
Application of set theory in solving business related problems. Matrix:
Array of numbers, meaning of a matrix, type of matrices: identity, null,
square, diagonal, symmetric, triangular matrix; basic operations with matrix;
addition subtraction, multiplication of matrices and transpose of matrix:
minor, cofactor, matrix of cofactors and adjoint matrix, inverse of square
matrix. Application of matrices to solve business related problem.
Differentiation: concept and meaning: measure of rate of change as
derivative or slope measure of marginal. Rules for differentiating the
following functions: polynomial, product, quotient, function of function,
implicit function, exponential and logarithmic functions. Second order
derivations, application of differentiation: finding marginal break-even
point, elasticity, maximum, and maximum values.

IAPM 007 Financial Accounting

The objective is to develop the ability to interpret business; Foundation of

accounting theory – Accounting standards, regulatory framework within
which accounting theory and practice operate; financial reporting –
objectives and concepts of financial reporting, uses and information needs of
these users; concept of income capital and value; compare accounting
definition of capital income to that of economics, various concept of value in
accounting: Historical test, replacement value; net realizable, current cost;
income measurement, objectives, approaches and problems of income
measurement; Assets and liabilities; types and classification of assets –
intangibles and fictitious assets; type types and classification of liabilities –
equity and contingencies – capital and reserve, treatment and presentation of
contingencies; Deferred taxes – treatment of deferred taxation in company
accounts, analysis and interpretation of financial statement, ratio used in
measure sort-term solvency, long term solvency.

IAPM 008 Pension and Life Insurance

Life Assurance: Principles and practices of insurance as applied to life

insurance. Life assurance contracts – annuity contracts, permanence health
insurance and group schemes. Types of life assurance covers: endowment,
linked assurance, annuity and industrial life assurance. Group life and
pension scheme, nature and purpose of group life schemes, scope of covers
and underwriting consideration, tax treatment and benefit under life
assurance.

Pension: Principle and practices of pension in Nigeria in pre and post

Pension Reform. Historical development of pension in Nigeria, the approval
of benefits and statutory requirements for approval, Group life pension
schemes – main features, procedures for installation, documentation and
administration of pension scheme, communication with employees,
employers and trade union on pension matters, administration of pension
entitlement, strategies for maximizing net income. pension Reform Act
2004: objectives, historical importance, Pension fund administrators –
role/functions; functions of Close pension fund administrators, Pension fund
custodians – duties and functions; benefit calculation under annuities, fund
investment and rules.

IAPM 009 Trusteeship (corporate & individual trust)

Historical background; duties and roles of trustees and trust organization in

trading of financial instruments – bonds, equity stocks, debenture, etc; trust
and civil laws, legal framework of trusteeship: parliamentary Acts as related
to trusteeship; trust deeds – definition, uses and structure, role of trustee in
recovery of security. living trust – parties to a living trust, benefit of living
trust, structure of a living trust, living trust and estate planning; benefit of
estate planning; probate – procedure for application and grant of probate,
different between will and living trust – merit and demerit of each over
other.

Final Stage Courses

IAPM 010 Taxation

To provide understanding of the Nigeria tax system and effect of taxation on

investments; interaction of taxation with wider practical application of
business financial decisions: Financial, income and corporation tax Acts,
income tax and management act of 1961, other legislation affecting taxation,
direct and indirect taxation, main features of personal taxation, main feature
of company taxation, tax treatment of different financial instruments: bonds,
pension assets, treasury bill, debentures, share etc. other relevant tax laws as
it affect the financial system in Nigeria.

IAPM 011 Investments and Portfolio Management

Concept of risk and returns, average return and risk premium; return
variability – frequency distribution and variability, variance and standard
deviation; risk-return trade-off. Securities: classification and types; interest
bearing assets – money market instruments, fixed income securities; equities
– common stocks, preferred stocks; derivatives – future contracts, option
contracts, option vs future; mutual funds: funds type – open-end, closed-end
funds, net value, short-term and long term funds. Stock market: market
participants, primary and secondary markets, trading procedure of the
exchange, stock valuation – two-stage dividend growth model, price ratio
analysis, earning and cash flow analysis: financial statement analysis and
forecasting, technical analysis, market efficiency. Bonds: types of bond,
bond calculation – straight bond price and yield to maturity, promised yield
and realized yield, duration – macaulay duration and modified duration,
bond seniority provisions – call provisions, put provisions, sinking fund
provisions; bond rating; mortgage-backed securities – fixed rate mortgage,
amortization mortgage, mortgage backed bonds collateralized mortgage;
yield for mortgage backed securities and collateralized mortgage obligation.
Derivatives: options, put and future contracts, trading techniques, uses of
options in financial instruments trading. Portfolio management: asset
location and diversification method – strategic, tactical and dynamic asset
allocation, diversification and portfolio risk, portfolio weight calculation –
expected returns, variance, correlation, beta. Risk in portfolio management –
risk types, risk calculation.

IAPM 012 Corporate Finance

Background information of investment financing; investment decision of

firm under conditions of certainty and uncertainty; problems of mutually
exclusive projects, capital rationing, and inflation, capital market efficiency
and the pricing of capital assets; evaluation of credit capacity analysis of
loan, interest rates and repayment terms; financial structure analysis; the
balance sheet; income statement and cash flow.

IAPM 003 Business Law

The structure of Nigeria legal system: Nigeria court system and functions,
law of contract: offer and acceptance, consideration, term of valid contracts,
remedies and enforcement. The principles of agencies, how agencies arise,
express, implied and ostensible agency, duties of agent and principle:
formation of business law; company laws, partnership, public liability
company, limited liability company; investment laws: banking laws,
insurance laws, trust laws, pension laws, regulatory agencies in financial
system and their functions. Explain types of mistakes, misrepresentation and
various remedies, sales of good and hire purchase act, negotiable
instruments – definition, bill of exchange, cheques and promissory notes.
Law of torts; tort personal negligence, various liability, criminal and civil
liability.