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Level 4 Certificate for Specialists in

Demand Guarantee (CSDG®)

Qualification Specification (2013-2014)

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.

The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
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RATIONALE

A Qualification Specification is a concise description of a qualification offered by ifs University College


and provides information to all stakeholders, including potential and current students. All qualifications
offered by ifs University College are validated and regularly reviewed, based on information set down
in each qualification specification.

CONTENTS

Page

1. Accreditation information 3

2. Learning hours 4
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3. Aims of the CSDG 4
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4. Learning outcomes for the CSDG 5
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5. Objectives of the CSDG 6
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6. Structure of the CSDG 6

7. Entry requirements 6

8. Methods of study 6
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9. Assessment methodology of the CSDG 7

10. Grading 7

11. Assessment resits 7

12. Learning resources 8

13. Principles and Practices of Demand Guarantees Transactions: 8

• Specification
• Learning outcomes / assessment criteria

• Assessment methodology

• Syllabus overview

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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1. Accreditation information

Qualification title ifs Level 4 Certificate for Specialists in Demand


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Guarantees (CSDG )

Ofqual qualification number -

Qualification level 4

European Qualifications 5
Framework (EQF) level

Regulation start date -

Operational start date -

Offered Internationally

Language of assessment English only

Sector subject area 15.1 Accounting and Finance

Purpose B. Prepare for further learning or training and / or


develop knowledge and / or skills in a subject area

Sub-purpose B2. Develop knowledge and / or skills in a subject area

Total credits 30

Minimum credits at / above level 30


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Minimum learning hours 150

Maximum learning hours 296

Overall grading type Pass / Merit / Distinction

Assessment methods Multiple-choice examination

Qualification description The Certificate for Specialists in Demand Guarantee


consists of one mandatory unit.

Age ranges 16–18; 19+

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150 guided learning hours for those students resitting the qualification as part of their recertification.
The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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1.1 Table 1 QCF Level 4 level descriptors

DESCRIPTION

SUMMARY Achievement at Level 4 reflects the ability to identify and use relevant
understanding, methods and skills to address problems that are well
defined but complex and non-routine. It includes taking responsibility
for overall courses of action as well as exercising autonomy and
judgement within fairly broad parameters. It also reflects
understanding of different perspectives or approaches within an area
of study or work.

KNOWLEDGE AND Use practical, theoretical or technical understanding to address


UNDERSTANDING problems that are well defined but complex and non-routine.
Analyse, interpret and evaluate relevant information and ideas.
Be aware of the nature and scope of the area of study or work.
Have an informed awareness of different approaches within the area
of study or work.

APPLICATION AND Address problems that are complex and non-routine while normally
ACTION fairly well defined.
Identify, adapt and use appropriate methods and skills.
Initiate and use appropriate investigation to inform actions.
Review the effectiveness and appropriateness of methods, actions
and results.

AUTONOMY AND Take responsibility for courses of action, including, where relevant,
ACCOUNTABILITY responsibility for the work of others.
Exercise autonomy and judgement within broad but generally well-
defined parameters.

2. Learning Hours

2.1 The current recommended learning hours are 296 which, under Ofqual regulations,
make CSDG a Certificate.

3. Aims of the CSDG®


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3.1 The aims of the CSDG are to:

i. provide students with a challenging qualification covering the core disciplines of demand
guarantees;
ii. enable students to apply specialised, current knowledge of demand guarantee rules,
practices and guidelines;

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Regulatory Arrangements for the Qualifications and Credit Framework, August 2008, page 48.
The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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iii. provide students with the tools and terminology necessary to analyse demand guarantees
and related products;
iv. enable students to explore the relationship between parties to demand guarantee
transactions;
v. familiarise students with the links between theory and practice; and,
vi. provide opportunities for students to develop the necessary skills and competencies to
move on to further study or employment.

4. Learning outcomes for the CSDG®


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4.1 Knowledge and understanding elements of the CSDG will provide students with the
ability to critically analyse the:

i. environment of demand guarantee, with a focus on rules, products and processes;


ii. roles and responsibilities of parties involved in demand guarantees;
iii. practical application of knowledge to different scenarios of varying complexity;
iv. risks involved in demand guarantees and how to mitigate them; and,
v. rules and regulations involved in demand guarantee and related products.

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4.2 Subject-specific practical / professional elements of the CSDG will provide students
with the skills to:

i. use appropriate rules and guidelines within demand guarantees; and,


ii. analyse demand guarantee products and processes and reflect upon their desirability and
effectiveness in a variety of scenarios.

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4.3 Intellectual skills developed by the CSDG will provide students with the ability to:

i. locate, extract and analyse information from different sources;


ii. apply higher-level cognitive skills of reflective practice, including analysis and evaluation;
iii. utilise problem-solving and decision-making skills; and,
iv. understand the interrelationships between the various subject disciplines and assimilate
these coherently to provide effective solutions.

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4.4 Transferable skills and personal qualities developed by the CSDG will provide
students with the ability to:

i. use appropriate information from a range of sources;


ii. learn independently and enhance skills of self-reflection, criticality and self-managed
study; and,
iii. structure and communicate ideas logically and coherently.

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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5. Objectives of the CSDG®


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5.1 On completion of the CSDG qualification, students will be able to:

i. demonstrate a level of expertise in demand guarantees that is recognised worldwide;


ii. improve their knowledge and understanding of the complex issues associated with
demand guarantee best practice;
iii. develop the skills to apply their knowledge in the workplace and to perform at a high level;
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iv. use the professional designation CSDG ; and,
v. improve their career and promotion prospects.

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5.2 As well as developing knowledge, the CSDG assists in developing the ability to:

i. analyse and evaluate information;


ii. apply knowledge to resolve defined problems;
iii. review information, options and recommendations and work out solutions by following a
clear and logical order;
iv. develop skills in examination technique; and,
v. apply and build on previous learning and experience.

6. Structure of the CSDG®


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6.1 CSDG is made up of one mandatory unit which needs to be successfully completed in
order for the student to achieve the certificate:

i. Unit 1: Principles and Practice of Demand Guarantee Transactions

7. Entry requirements

7.1 There are no specified entry requirements. However, individuals need to be satisfied of their
ability to study in English at Level 4.

8. Methods of study
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8.1 CSDG is delivered via distance learning.

8.2 Materials and additional information are available by accessing my ifslearning.

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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9. Assessment methodology of the CSDG®

9.1 The unit is assessed in a single examination lasting three hours. The examination paper is
split into two sections.

9.2 Section A is assessed by 50 multiple-choice questions, with one mark available for each
correct answer.

9.3 Section B is assessed by:

i. 10 multiple-choice questions, with one mark available for each correct answer;
ii. Two case studies comprising ten multiple-choice questions linked to a set of
documents, with one mark available for each correct answer; and,
iii. Four simulation exercises, candidates must identify five errors from a choice of
10. Each error correctly identified is worth one mark. A total of five marks are available
for each simulation exercise.

9.4 A total of 100 marks are available.

10. Grading

10.1 The qualification will be graded fail / pass / merit / distinction:

Grade Raw mark

Fail 0–69

Pass 70–79

Merit 80–94

Distinction 95–100

10.2 To achieve an overall pass, students must achieve a mark of 70% overall.

10.3 Students are graded on a qualification basis only, although they must obtain at least 60% in
Section B.

11. Assessment resits

11.1 Students are allowed to resit the unit in accordance with the published ifs policies.

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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12. Learning resources

12.1 Students will be provided with the following learning resources:


i. online access via my ifslearning to learning materials and to ifsKnowledgeBank (virtual
library);

ii. unit syllabus;

iii. student handbook;

iv. study text and study guide;

v. specimen paper; and,

vi. student-led forum.

13. Principles and Practices of Demand Guarantees

13.1 Specification

Unit title Principles and Practice of Demand Guarantee Transactions

Ofqual unit reference number -

Unit level 4

Learning hours 296

Unit credit value 30

Unit aims i. This unit introduces students to demand guarantees by focussing


on the different types, rules and processes.
ii. It highlights the importance of rules, practices and guidelines for
demand guarantees and related products.
iii.Students will gain an understanding of the tools and
terminology necessary to analyse demand guarantees and
related products.
iv. Students to will gain an understanding of the roles,
obligations and relationship between parties to demand
guarantee transactions.
v. Students will gain an understanding of the risks involved in
demand guarantee transactions and be able to manage those
risks.
vi. Students will be able to manage demand guarantees and the
relationship between parties to the guarantee.
vii. Student will understand the links between theory and
practice.

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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13.2 Learning outcomes / assessment criteria

Learning outcome (LO) Assessment criteria (AC)


The learner when awarded credit for this Assessment of the LOs will require a learner to demonstrate that
unit will: they can:

1.1 Explain what is meant by the terms demand guarantee and


1. Understand the main features of a
standby credit.
demand guarantee and standby letter
1.2 Identify the main types of demand guarantee and standby credit.
of credit.

2.1 Explain guarantees, suretyships and standby letters of credit.


2. Understand the key features of 2.2 Explain the requirements for guarantees, suretyships and
guarantees, suretyships and standby standby letters of credit.
letters of credit. 2.3 Compare and contrast demand guarantees, suretyships and
standby letters of credit.

3.1 Identify the rules that govern guarantees and standby credits.
3. Know the rules, standards and
3.2 Apply the rules that govern guarantees and standby credits.
guidelines that govern guarantees and
standby letters of credit. 3.3 Explain the scope of the rules that govern guarantees and
standby credits.

4.1 Explain the scope of different types of guarantee and standby


credit.
4. Understand the capacity of different
4.2 Explain the advantages of different types of guarantee and
types of guarantee and standby letter
standby credit and when they are the preferred option.
of credit and when they are used.
4.3 Compare the main types and uses of demand guarantee and
standby credit.

5.1 Explain the lifecycle of a demand guarantee.


5.2 Explain the problems that arise in practice in relation to demand
5. Understand the process and challenges
guarantees and standby credits, documents and the rules.
involved in demand guarantee.
5.3 Resolve any challenges involved in demand guarantees and
standby credits.

6.1 Describe the relationship between the parties involved in demand


guarantees and standby credits.
6. Understand the roles and obligations of
6.2 Identify the roles and obligations of the parties involved in
the parties to a guarantee or standby
demand guarantees or standby credits.
letter of credit and the relationships
between them. 6.3 Identify the ways in which ICC rules can affect the relationships,
roles and obligations of the parties to demand guarantees and
standby credits.

7. Understand the ways in which the rules 7.1 Identify the ways in which the ICC rules for demand guarantees
for demand guarantees and standby and standby credits can be affected by external factors.
letters of credit can be affected by 7.2 Explain the implications of the affect external factors can have on
external factors and the implications of rules for demand guarantees and standby credits.
these affects.

8. Understand and manage the risks 8.1 Identify the various operational risks involved in demand
involved in demand guarantees and guarantee and standby credits and the impact of these on the

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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Learning outcome (LO) Assessment criteria (AC)


The learner when awarded credit for this Assessment of the LOs will require a learner to demonstrate that
unit will: they can:

standby letters of credit. parties involved.


8.2 Explain how the risks involved in demand guarantees and standby
credits may be controlled and mitigated.

9.1 Apply appropriate rules and trade terms that govern demand
guarantees and standby credits.
9.2 Manage the relationships between parties to demand guarantees
and standby credits.
9. Be able to manage demand 9.3 Resolve any challenges involved in demand guarantees and
guarantees. standby credits.
9.4 Manage the risks involved in demand guarantees and standby
credits.
9.5 Check accuracy of demand guarantee and standby credit
documents.

13.3 Assessment methodology

This will be assessed by a number of standalone multiple-choice questions; case studies and
simulation exercises. The issue of guarantees and standby credits and the presentation of claims will
be covered by the case studies and simulation exercises.

13.4 Syllabus overview

Learning Outcome Syllabus

1. Understand the main Demand guarantee definitions


features of a demand • What is a demand guarantee?
guarantee and a standby
• What is a standby credit?
letter of credit.

2. Understand the key features of Guarantees, suretyships, and standby letters of credit, including:
guarantees, suretyships and • What they are
standby letters of credit.
• Documents required
• Comparison to demand guarantees and with each other

3. Know the rules, standards • Scope and application of the rules


and guidelines that govern • URDG 758
demand guarantees and
• ISP98 where they differ from URDG 758
standby letters of credit.

4. Understand the capacity of • Scope of a guarantee or standby credit


different types of guarantee and • Advantages to all parties.
The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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Learning Outcome Syllabus


standby letter of credit and • Scenario’s where one type of guarantee or standby is preferred
when they are used. over another.

5. Understand the process and Lifecycle of a demand guarantee or standby credit


challenges involved in • Draft
demand guarantee.
• Issue
• Amendments
• Presentation
• Examination
• Payment
• Termination and reduction
Including:
• Rejection (including non complying demand, waiver, notice)
• Transmission and translation

6. Understand the roles and Relationship between parties to the demand guarantee (including
obligations of the parties to advantages to each party)
a guarantee or standby • Instructing party
credit and the relationships
• Applicant
between them.
• Guarantor
• Beneficiary

7. Understand the ways in • Indemnity for foreign laws and usages


which the rules for demand • Governing law
guarantees or standby
• Jurisdiction
letters of credit can be
• Force majeure
affected by external factors
and the implications of • (including URDG and other ICC rules, , national laws, courts)
these affects.

8. Understand and manage the • Risks and consequences


risks involved in demand • Fraud
guarantees and standby
• Money laundering
credits

9. Be able to manage demand • Practitioner element, putting theory in to practice.


guarantees.

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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