Basic EFPA - CFA Course

#1 ONLINE COURSE - Principles and characteristics of certificates: protection, conditional protection and taxation  --- REGISTER

Accredited for maintaining EFPA certification (6 hours/credits) levels EFA, EFP, EIP e ESG Advisor, EIS, PPF, PPS, PMK, EPS, EAI 
Accredited CFA Society Italy* for 6 credits
Teachers: Pierpaolo Scandurra and Giovanna Zanotti

The certificate: definition and basic concepts
The certificate as a structured package of options, which allows an asymmetry of performance and protection with respect to the underlying financial asset.
Examples: with the same certificate, also total protection on the decreases and performance more than proportional on the increases; protection with flow of periodic premiums; positive performance on positive or negative trend of the underlying within a certain range, etc.

The role of dividends in certificates
The renunciation of dividends from the underlying financial asset allows certificates to be issued with protection against discounts and performance against price increases

The primary and secondary markets
How they work and what are differences

The categories of certificates according to ACEPI

  • Capital Protection Certificates
  • Conditionally protected capital certificates (protection and performance conditional on the price of the underlying financial asset remaining above a barrier level)
  • Unprotected capital certificates (without protection, but with performance even more than proportional to the positive development of the underlying financial asset)
  • Leverage certificates (positive and negative performance more than proportional to the performance of the underlying financial asset)
The ACEPI map: the classification of certificates adopted by Borsa Italiana-Euronext and the Italian MTFs

The operation of some payoff

Protected capital
They offer even total protection on low and performance on high

  • Equity Protection
  • Digital


Capital conditionally protected

  • Bonus
    They recognise a maturity premium, provided that the underlying asset has never fallen below a predefined barrier level; participation in the upside of the underlying at maturity; there is a conditional capital protection barrier.
  • Cash Collect
    They offer recurring coupon profits over life and maturity if, at their respective observation dates, the underlying asset is greater than or equal to a predetermined level; there is a barrier of protection of invested capital.
  • Express
    They offer early redemption, with payment of a fixed amount, if on one of the pre-determined dates the underlying asset is greater than or equal to a pre-determined level; it has a capital protection barrier; Maturity redemption premium if the price of the underlying is greater than or equal to a pre-set level.


How certificates should be used

  • capital protection, coupon flow, performance even more than proportional to the positive trend of the underlying
  • the taxation of certificates and the compensation of losses
  • diversification of certificates portfolios

*CFA Society Italy has determined that this program qualifies for PL credit hour(s) under the guidelines of the CFA Institute Professional Learning program. If you are a CFA Institute member, you can self report PL credit(s) for your participation accessing the PL tracking tool through your account on the CFA Institute website. One credit hour is equal to one hour (60 minutes) of educational activity.