timthumb-1.phpDear Colleagues in Finance and Treasury,

Another productive couple of weeks for the Finance and Treasury Association, and the FTA Secretariat.

Website – new features
Presentations from the Essential Treasurer and our last two webinars, plus many other treasury best practice papers and FTA submissions are now available to FTA members in our new Member-only content section.

Content is divided into four areas:
i)  Advocacy
ii) Technical Papers
iii) Past Event Media
iv) Webinars & Video

For access – go to home page and click on the Member Content Registration button in top right hand corner. Select your email as your username and choose a password that you can remember, and save it on your device.

If there are papers you hope or expect to see here please advise and we will seek to locate and post them.

imagesNew Webinars – Reporting & Governance

1. As promised, our next webinar is: “Treasury Reporting to the Board”. Thursday July 23rd at 12.30pm – 1.15pm AEST.
Free to FTA members. 1 CPD point

Speakers: Treasurer’ perspective – Bronwyn Wellings FFTP, Group Treasurer, OZ Minerals Ltd & Chair of FTA Victorian Chapter

Director’s perspective – Michael O’Neill FFTP, Professional Company Director (Finance, Risk & Treasury Specialist), and Teachers Mutual Bank Ltd

Reports by Treasury to the Board allow directors to understand the nature and degree of financial risks to which the company is exposed.  Further, Boards need to understand the potential impact on the company’s financial performance, and the effectiveness of treasury’s risk management and mitigation processes. Each of these elements is critical in the discharging of both director and company officers’ core responsibilities. Yet the process can becomes problematic if the two-sides (and in particular the treasurer) does not understand each others expectations. Our speakers address what are the key papers, and metrics reported, and what are the key questions from the Board? Longer courses will give you detailed frameworks and processes. In this FTA session you will receive practical insights from two highly experienced treasury and finance professionals familiar with both sides of treasury reporting.

Further details on how to register will be available next week. 

2. Webinar – “Transforming Your Treasury – Adopting the Best Approach for Your Corporate Treasury  Part 1: Governance and Financial Risk
Thursday 30th July 2015 at your desk! From 12.30pm – 1.15pm AEST.
Free to FTA members. 1 CPD point
Register here 


  • Paul Travers FFTP, Executive Director, KPMG
  • Andrew Winders Vice President, Asia-Pacific, SunGard

Linking in to the previous session is the first of a three part series with Sungard and KPMG. The series theme is how to tailor your treasury so that it is “fit for purpose” reflecting always limited resources and nearly unlimited expectations of Treasury from Board and C-level. Details to follow.


Keynotes confirmed
Congress Early Bird closes Friday 10th July

This year’s Congress is taking shape.

Our theme “Progressive Treasury – Adding Value in the Business” recognises that treasury must develop along with the business. Sometimes it is evolutionary, sometimes revolutionary.

Who better to illustrate treasury’s ability to add value, and the value of the treasury and finance professional skill-set, than our keynote speaker Peter Gregg FFTP, now CEO of Primary Health Care but also previously the CFO at Leighton Holdings, and before that Qantas (where he was also once Group Treasurer.) Peter will also be able to highlight his experience in “Making the Transition from Treasury to the C-Suite”.

I am also delighted to confirm that Prof Kevin Davis FFTP, Professor of Finance University of Melbourne, and Research Director of Australian Centre for Financial Studies, will join us to speak about his insights from the Financial System Inquiry. He will also address growing concerns about the impact of financial regulation on non-financial corporations, particularly the prospect of liquidity and market risk events being unintended consequences of post-GFC regulations.

Detailed corporate case studies are a key differentiator in the 2015 Congress program.

Key topics at the 2015 Congress are:

  • “Treasury’s role across the full business supply chain”
  • Reviewing capital structure and corporate financing in light of structural economic changes
  • Treasury transformation case studies
  • Regulatory Implications for corporate funding and liquidity
  • Disruptive technology, changing payment methods & opportunities for treasury

Further, core sessions on the following will be offered:

  • Financial risk management & hedge accounting
  • Domestic & International Funding
  • Career development

We will also have two Closed Treasurer sessions on Wednesday October 28th,  4.00pm – 5.30pm, and immediately following the final lunch and plenary session on Friday October 30th. We will inform you of discussion topics when you register.
Watch the Congress website for regular speaker and program updates.

306352-rba-says-rates-setting-is-accommodative-Does Treasury’s role in corporate value creation tie into how WACC is calculated?

On 19th June 2015, the Australian Financial Review published the article “RBA reveals why boards won’t invest” which goes to the heart of concern about the apparent failure of loose monetary policy to spur stronger non-mining investment. The idea is pertinent to the Congress theme and the program as we are shaping it, notably the Capital Structure/Hurdle rates session which will be addressed by Tony Carlton, a highly experienced lecturer at Macquarie University’s Applied Finance Centre.

The original research is “Firms’ Investment Decisions and Interest Rates” by Kevin Lane and Tom Rosewall In the latest Reserve Bank of Australia Bulletin. Refer: http://www.rba.gov.au/publications/bulletin/2015/jun/pdf/bu-0615-1.pdf

Observations and thoughts on the research:
1.  Firms are practicing “real option theory” in delaying investments.
2.  Focus on faster payback rates may be about fears of technologically-driven obsolescence, in addition to concerns about sustainability of aggregate economic growth.
3.  There is an apparent doubling up of margin of error on forecast cash-flows.
4.  There is an implied recommendation to use probability-weighting and scenarios for assessing investment opportunities.
5.  Should hurdle rates be stable despite structural changes in the business cycle? A good academic question
6.  Corporates are using Capital Asset Pricing Model (CAPM) for Weighted –average cost of capital (WACC) calculations.
7.  I would argue that WACC hurdle rate should be reviewed whenever companies are considering capital returns to shareholders.
8.  My conclusion: Treasurers have a key role as they can be the internal expert advising Boards on appropriate discount rates and methodologies for using them.

image003Fundamentals of Treasury Operations Sydney
Friday August 7th 2015    

Book here

Newly confirmed speakers & sessions:

  • Integrating into the Financial Supply Chain using Outsourced Treasury Solutionswith Lesley Mitchell, Chief Executive Officer of ETOS Limited
  • Transforming Your Treasury – Adopting the Best Approach for Your Corporate Treasury – Liquidity and Cash Management and Funding
    (Part 2 of series) with Paul Travers FFTP, KPMG with SunGard speaker
  • Treasury transformation, automation and integration at Charter Hall. A case study with Visual Risk. with  Ian Ko CFTP, Head of Treasury Operations, Charter Hall, and Tim Oakley CFTP, Senior Treasury Consultant, Visual Risk

Until Friday week, David

David Michell CFTP (Snr)
CEO, The Finance and Treasury Association