Page 41 - CAPE Financial Services Syllabus Macmillan_Neat
P. 41
UNIT 2
MODULE 1: THE FINANCIAL SERVICES ENVIRONMENTS (cont’d)
SPECIFIC OBJECTIVES CONTENT
Students should be able to:
5. explain the concept of private (a) Definition and explanation of ‘private
banking’.
banking and the types of products
and services offered within the (b) The products and services offered to
financial services environment; private banking customers:
6. explain the purpose and activities (i) wealth and investment
of captive insurance; portfolio management; and,
7. explain the advantages and (ii) financial derivatives.
disadvantages of financial
derivatives; (c) The types of customers that utilise
private banking:
(i) geographically mobile;
(ii) wealthy; and,
(iii) complex financial instrument
holders.
(a) The concept of captive insurance.
(b) Purposes of captive insurance
companies.
(c) Activities of captive insurance
companies.
(a) Explanation of terms and concepts
such as: financial derivatives, credit
derivative, total return swaps, spread
options, credit default swaps, net
settlement payment, forward and
future contracts including swap and
option contracts.
(b) The risk associated with trading
derivatives.
(c) The benefits and disadvantages of
using financial derivatives for
hedging against risk.
CXC A38/U2/16 36
