Articles
Fed Study: Fees, Gates Could Cause Money Fund Run
A recent study authored by Federal Reserve economists concluded that rules currently being proposed to prevent money market fund runs could instead have the opposite effect. Rules that impose restrictions on immediate redemptions, known as gates, and fees during periods of shortened liquidity, the study cautions, “may threaten financial stability by setting up the possibility of preemptive runs.”
A recent study authored by Federal Reserve economists concluded that rules currently being proposed to prevent money market fund runs could instead have the opposite effect. Rules that impose restrictions on immediate redemptions, known as gates, and fees during periods of shortened liquidity, the study cautions, “may threaten financial stability by setting up the possibility of preemptive runs.”
05/21/2014
Unified Field Theory: Making the Case for FP&A Standards
Organizations lack widely accepted FP&A standards and principles, and the range of inputs and methodologies can lead to widely varying results that can adversely impact strategic decisions. In response, a new whitepaper, On the Same Page: The Case for FP&A Standards, addresses the need for clear-cut standards and definitions in FP&A.
Organizations lack widely accepted FP&A standards and principles, and the range of inputs and methodologies can lead to widely varying results that can adversely impact strategic decisions. In response, a new whitepaper, On the Same Page: The Case for FP&A Standards, addresses the need for clear-cut standards and definitions in FP&A.
05/21/2014
Obey or Pay: It’s Time for Treasurers to Act on FATCA
With the Foreign Account Tax Compliance Act (FATCA) scheduled to take effect on July 1, many treasury departments are making sure they know what they need to do to comply. Not surprisingly, the law was a major topic of discussion at this week’s AFP Treasury Advisory Group meeting in Dallas.
With the Foreign Account Tax Compliance Act (FATCA) scheduled to take effect on July 1, many treasury departments are making sure they know what they need to do to comply. Not surprisingly, the law was a major topic of discussion at this week’s AFP Treasury Advisory Group meeting in Dallas.
05/21/2014
Treasury Best Practices: Improving Bank Account Management
Without streamlining its roster of banks, treasury cannot do an effective job of administrating accounts and keeping track of all relevant account information. That’s the key takeaway from the second installment of AFP’s Treasury in Practice series, Improving Bank Account Management: Best Practices, underwritten by KeyBank.
Without streamlining its roster of banks, treasury cannot do an effective job of administrating accounts and keeping track of all relevant account information. That’s the key takeaway from the second installment of AFP’s Treasury in Practice series, Improving Bank Account Management: Best Practices, underwritten by KeyBank.
05/20/2014
Enabling CFOs to See the Strategic Value of Treasury
Many CFOs are still unaware of the strategic value of treasury, members of AFP’s Treasury Advisory Group noted at their latest meeting. And because of the excessive turnover at the CFO level throughout the business world in recent years, treasury departments are striving to demonstrate the value they bring to their organizations.
Many CFOs are still unaware of the strategic value of treasury, members of AFP’s Treasury Advisory Group noted at their latest meeting. And because of the excessive turnover at the CFO level throughout the business world in recent years, treasury departments are striving to demonstrate the value they bring to their organizations.
05/20/2014
AFP Launches Certified Corporate FP&A Professional Credential
AFP has officially launched its Certified Corporate Financial Planning & Analysis Professional (“FP&A”) credential, the first-of-its-kind certification program specifically for FP&A executives. The launch coincides with the introduction of the first class of certified FP&A professionals.
AFP has officially launched its Certified Corporate Financial Planning & Analysis Professional (“FP&A”) credential, the first-of-its-kind certification program specifically for FP&A executives. The launch coincides with the introduction of the first class of certified FP&A professionals.
05/20/2014
Businesses Urge Congress to Oppose Raising PBGC Premiums
After two years of Pension Benefit Guaranty Corporation premium increases, companies, business groups and pension trade associations asked Congress to oppose additional premium increases.
05/20/2014
Today’s Most Important FP&A Challenge: Supporting Innovation
The 2014 Key Issues survey by The Hackett Group found that risks related to competition, regulation and talent are gaining momentum and affecting the role of finance and general and of financial planning and analysis groups in particular.
The 2014 Key Issues survey by The Hackett Group found that risks related to competition, regulation and talent are gaining momentum and affecting the role of finance and general and of financial planning and analysis groups in particular.
05/19/2014
Interest Rates May Finally Rise—Much to Consumers’ Chagrin
Prior to last December’s meeting of the Federal Open Market Committee, the Fed was purchasing $40 billion per month in agency mortgage-backed securities and $45 billion per month in longer-term Treasury securities. By the time the FOMC met in March, the monthly purchasing had slowed to $25 billion in agency mortgage-backed securities and $30 billion in longer term Treasury securities.
Prior to last December’s meeting of the Federal Open Market Committee, the Fed was purchasing $40 billion per month in agency mortgage-backed securities and $45 billion per month in longer-term Treasury securities. By the time the FOMC met in March, the monthly purchasing had slowed to $25 billion in agency mortgage-backed securities and $30 billion in longer term Treasury securities.
05/16/2014
Turmoil in Ukraine is Wreaking Havoc on Treasury and Finance
Treasury and finance executives whose companies do business in Russia, the Ukraine, and other former Soviet republics are feeling the effects of the Crimean crisis on their bottom lines. The turmoil has caused the ruble’s exchange rate to plummet, making it more expensive for companies to import goods and to service existing debts. The crisis is also making it more difficult for companies to borrow money. In addition, sanctions against individual banks are complicating cross-border payments.
Treasury and finance executives whose companies do business in Russia, the Ukraine, and other former Soviet republics are feeling the effects of the Crimean crisis on their bottom lines. The turmoil has caused the ruble’s exchange rate to plummet, making it more expensive for companies to import goods and to service existing debts. The crisis is also making it more difficult for companies to borrow money. In addition, sanctions against individual banks are complicating cross-border payments.
05/16/2014
Study: Higher PBGC Premiums Would Harm GDP, Jobs, Consumers
A new study found that additional premiums for the Pension Benefit Guaranty Corporation would severely impact the U.S. GDP, the job market, and consumer purchasing power.
A new study found that additional premiums for the Pension Benefit Guaranty Corporation would severely impact the U.S. GDP, the job market, and consumer purchasing power.
05/15/2014
Fear of the Unknown: EMV Tops Retail Treasurers’ Concerns
Treasurers at the 2014 AFP Retail Roundtable in Dallas said Thursday that their biggest concern is EMV migration. They cited cost, customer resistance, and nagging doubts that switching to the chip-and-PIN equipment is the right technology to fight future fraud attempts.
Treasurers at the 2014 AFP Retail Roundtable in Dallas said Thursday that their biggest concern is EMV migration. They cited cost, customer resistance, and nagging doubts that switching to the chip-and-PIN equipment is the right technology to fight future fraud attempts.
05/15/2014
CFO Coach: The Evolution of Interviewing
Technology has evolved the interviewing process. Video interviewing will create seamless conversations via technology that will dramatically change the hiring landscape.
Technology has evolved the interviewing process. Video interviewing will create seamless conversations via technology that will dramatically change the hiring landscape.
05/15/2014
AFP Fraudwatch: Post-Target, Treasurers Get Proactive
Fraud has always been a concern for treasurers, and in the post-Target environment, it has only become even more of a priority. At the latest meeting of AFP’s Treasury Advisory Group in Dallas, practitioners discussed the new fraud issues they face, and the steps they are taking to address them, in the wake of the Target security breach.
Fraud has always been a concern for treasurers, and in the post-Target environment, it has only become even more of a priority. At the latest meeting of AFP’s Treasury Advisory Group in Dallas, practitioners discussed the new fraud issues they face, and the steps they are taking to address them, in the wake of the Target security breach.
05/14/2014
CTC Releases New Guide on Managing Supply Chain Risk
In a new guide, Leadership in Treasury: Managing Risk in the Supply Chain, underwritten by Reval, AFP’s Corporate Treasurers Council explores some of the ways that treasurers can use their skills and insights to support strategic management of risk in the supply chain. Though it is unlikely that most treasurers will be responsible for implementing supply chain risk management policies outside finance, they can still help to identify, evaluate and suggest mitigation techniques across the entire organization.
In a new guide, Leadership in Treasury: Managing Risk in the Supply Chain, underwritten by Reval, AFP’s Corporate Treasurers Council explores some of the ways that treasurers can use their skills and insights to support strategic management of risk in the supply chain. Though it is unlikely that most treasurers will be responsible for implementing supply chain risk management policies outside finance, they can still help to identify, evaluate and suggest mitigation techniques across the entire organization.
05/13/2014
Perspective: What One Exec Learned in 28 Years in Finance
David Axson, a managing director in Accenture’s Finance and Enterprise Performance practice, will bring nearly 30 years worth of global finance and consulting experience as a keynote speaker at AFP’s Annual Conference in November.
David Axson, a managing director in Accenture’s Finance and Enterprise Performance practice, will bring nearly 30 years worth of global finance and consulting experience as a keynote speaker at AFP’s Annual Conference in November.
05/12/2014
Ten Steps to Successful Presentations
So, you’ve been asked to give a presentation? Perhaps—for the first time—to senior management or even the board of directors? These steps will take you from content selection to post-delivery feedback. You’ll be able to give better presentations and get better results.
So, you’ve been asked to give a presentation? Perhaps—for the first time—to senior management or even the board of directors? These steps will take you from content selection to post-delivery feedback. You’ll be able to give better presentations and get better results.
05/09/2014
Bottom Line: Leadership Milestones
This path is based upon the actual careers of several recently appointed corporate treasurers. Expect a few twists and turns along the way.
This path is based upon the actual careers of several recently appointed corporate treasurers. Expect a few twists and turns along the way.
05/09/2014
Survey: CFOs More Upbeat, Likely to Increase Spending
Finance executives are increasingly optimistic about the economy and say they are likely to increase spending, according to a new survey. However, this trend is not likely to translate into corporates immediately investing their cash reserves.
Finance executives are increasingly optimistic about the economy and say they are likely to increase spending, according to a new survey. However, this trend is not likely to translate into corporates immediately investing their cash reserves.
05/08/2014
FASB Backs Off Leasing Proposal and Convergence with IASB
After two rounds of proposals and industry comments, the Financial Accounting Standards Board (FASB) appears to have decided that current lease accounting from a lessee standpoint isn’t so bad after all.
After two rounds of proposals and industry comments, the Financial Accounting Standards Board (FASB) appears to have decided that current lease accounting from a lessee standpoint isn’t so bad after all.
05/08/2014
May 2014 Risk Newsletter
The Foreign Account Tax Compliance Act (FATCA) is scheduled to take effect July 1. The May issue tells you all you need to know to prepare for this potentially burdensome new regulation. Plus, there’s guidance on derivatives liquidity, and lease accounting news.
The Foreign Account Tax Compliance Act (FATCA) is scheduled to take effect July 1. The May issue tells you all you need to know to prepare for this potentially burdensome new regulation. Plus, there’s guidance on derivatives liquidity, and lease accounting news.
05/08/2014
The Impact of Rising Real Estate Prices on Treasury
Prices for office properties are rising across the country, a trend that could impact nearly every treasury department. But corporates looking outside the trendiest sections of town will still find plenty of bargaining power, especially to lease properties, although perhaps not for much longer.
Prices for office properties are rising across the country, a trend that could impact nearly every treasury department. But corporates looking outside the trendiest sections of town will still find plenty of bargaining power, especially to lease properties, although perhaps not for much longer.
05/07/2014
Finding Finance Potential Beyond the Résumé
As a treasury and finance leader looking to acquire top talent, you need to know if the person you bring on board will be driven to succeed and work seamlessly inside your company’s culture. This won’t happen unless their strengths are identified and put to use.
As a treasury and finance leader looking to acquire top talent, you need to know if the person you bring on board will be driven to succeed and work seamlessly inside your company’s culture. This won’t happen unless their strengths are identified and put to use.
05/07/2014
Navigating Canada’s Anti-Money Laundering Laws
Understanding regulations around Canadian payments is critical for corporate practitioners operating north of the border—and south of it as well. Because the two nations are each other’s largest trading partners, treasury and finance professionals on both sides of the border should pay close attention.
Understanding regulations around Canadian payments is critical for corporate practitioners operating north of the border—and south of it as well. Because the two nations are each other’s largest trading partners, treasury and finance professionals on both sides of the border should pay close attention.
05/06/2014
AFP Fraudwatch: Target Breach’s Latest Victim is the CEO
Target said Monday that it has relieved Chairman and CEO Gregg Steinhafel of his duties, following the massive holiday data breach that compromised 110 million customers, hurt Target’s fourth quarter 2013 profits and seriously damaged the company’s reputation.
Target said Monday that it has relieved Chairman and CEO Gregg Steinhafel of his duties, following the massive holiday data breach that compromised 110 million customers, hurt Target’s fourth quarter 2013 profits and seriously damaged the company’s reputation.
05/06/2014
Cash: The Once, Current and Future King, Says Fed
New data indicates that U.S. consumers still prefer to use cash over any other payment method, including debit and credit cards. The Cash Product Office (CPO) of the San Francisco Fed reported that while many electronic payments pundits have been predicting the demise of cash for years, the data tells a different story.
New data indicates that U.S. consumers still prefer to use cash over any other payment method, including debit and credit cards. The Cash Product Office (CPO) of the San Francisco Fed reported that while many electronic payments pundits have been predicting the demise of cash for years, the data tells a different story.
05/05/2014
Do New Liquidity Rules for Derivatives Collateral Work?
Over the past several years regulators have implemented rules to reign in risks associated with derivatives trading. The irony is that clearing houses do not eliminate risk. Rather, they centralize it.
Over the past several years regulators have implemented rules to reign in risks associated with derivatives trading. The irony is that clearing houses do not eliminate risk. Rather, they centralize it.
05/05/2014
This Week in Corporate Finance: Mixed Economic Indicators
It was an interesting week of information releases as we saw a number of economic indicators exceeding expectations, while a number of indicators disappointed us to the weak side. At the same time, we are also experiencing an increase in geopolitical tensions between Russia and Ukraine.
It was an interesting week of information releases as we saw a number of economic indicators exceeding expectations, while a number of indicators disappointed us to the weak side. At the same time, we are also experiencing an increase in geopolitical tensions between Russia and Ukraine.
05/05/2014
May 2014 FP&A Newsletter
The terms “analytics” and “business intelligence” are frequently used in FP&A circles. But just how different are they? Also this issue: why FP&A must measure its own ROI. Plus, the newsletter introduces a monthly quiz.
The terms “analytics” and “business intelligence” are frequently used in FP&A circles. But just how different are they? Also this issue: why FP&A must measure its own ROI. Plus, the newsletter introduces a monthly quiz.
05/01/2014
Hard Facts for Soft Skills Using Treasury Technology
For treasurers, sharing the kind of information CFOs care about—improving operating margins, ensuring liquidity, etc.—will not only have an impact on their decision-making. It will also elevate the value treasury delivers to the business. With the help of advanced technology, more treasury professionals are actually delivering the metrics that matter.
For treasurers, sharing the kind of information CFOs care about—improving operating margins, ensuring liquidity, etc.—will not only have an impact on their decision-making. It will also elevate the value treasury delivers to the business. With the help of advanced technology, more treasury professionals are actually delivering the metrics that matter.
05/01/2014
Where Do Finance Executives Find Top FP&A Employees?
Despite the critical role that FP&A professionals play in today’s business world, 64 percent of C-level executives report that the FP&A role is the hardest position to fill, according to a recent APQC survey. So where do FP&A professionals come from? Here’s what finance executives had to say when they had to find talent.
Despite the critical role that FP&A professionals play in today’s business world, 64 percent of C-level executives report that the FP&A role is the hardest position to fill, according to a recent APQC survey. So where do FP&A professionals come from? Here’s what finance executives had to say when they had to find talent.
04/30/2014
Stay or Go? eBay Repatriates Cash, Apple Keeps it Abroad
Online auction site eBay defied conventional wisdom Tuesday when it announced it would repatriate $9 billion in cash held overseas—incurring a $3-billion tax bill in the process. In contrast, Apple recently raised $12 billion in a bond sale to finance shareholder rewards instead of bringing its overseas cash back to the U.S.
Online auction site eBay defied conventional wisdom Tuesday when it announced it would repatriate $9 billion in cash held overseas—incurring a $3-billion tax bill in the process. In contrast, Apple recently raised $12 billion in a bond sale to finance shareholder rewards instead of bringing its overseas cash back to the U.S.
04/30/2014
AFP Canadian Forum Preview: Amber MacArthur on Social Media
Attendees of the AFP Canadian Forum in Toronto this June are going to get a crash course on social media trends and best practices from one of Canada’s foremost experts, Amber MacArthur, president of Konnekt Digital Engagements. She recently spoke with AFP about her upcoming forum session.
Attendees of the AFP Canadian Forum in Toronto this June are going to get a crash course on social media trends and best practices from one of Canada’s foremost experts, Amber MacArthur, president of Konnekt Digital Engagements. She recently spoke with AFP about her upcoming forum session.
04/29/2014
ANSI Approves Technical Reports on Remittance
The Remittance Coalition, an industry group that promotes greater use of electronic business-to-business (B2B) payments and electronic data exchanges, has received approval from the American National Standards Institute (ANSI) for three new technical reports.
The Remittance Coalition, an industry group that promotes greater use of electronic business-to-business (B2B) payments and electronic data exchanges, has received approval from the American National Standards Institute (ANSI) for three new technical reports.
04/29/2014
Survey: U.S. Businesses Hoarding Less Cash, Spending More
U.S. businesses grew more confident in 1Q2014, significantly slowing the pace of cash accumulation, according to the April 2014 AFP Corporate Cash Indicators™ (AFP CCI), underwritten by State Street Global Advisors. Meanwhile, the indicator for short-term investment aggressiveness jumped three points during the quarter.
U.S. businesses grew more confident in 1Q2014, significantly slowing the pace of cash accumulation, according to the April 2014 AFP Corporate Cash Indicators™ (AFP CCI), underwritten by State Street Global Advisors. Meanwhile, the indicator for short-term investment aggressiveness jumped three points during the quarter.
04/28/2014
This Week in Corporate Finance: Slow Progress in April
The month of April has been a continuation of the narrative of a U.S. economy that is progressing, but at a pace where we see neither a quick drop in the unemployment rate or a spike up in the inflation rate. The stock market is staying near its recent highs, while the U.S. Treasury yield curve continues to flatten.
The month of April has been a continuation of the narrative of a U.S. economy that is progressing, but at a pace where we see neither a quick drop in the unemployment rate or a spike up in the inflation rate. The stock market is staying near its recent highs, while the U.S. Treasury yield curve continues to flatten.
04/28/2014
NACHA Requests Feedback from Network End Users on Same-Day ACH
NACHA is requesting feedback from treasury and finance professionals on use cases, benefits and potential transaction volume of a ubiquitous same-day settlement capability across the ACH Network. The features of this capability would likely consist of two new same-day settlement times each banking day, in addition to the existing overnight settlement capability.
NACHA is requesting feedback from treasury and finance professionals on use cases, benefits and potential transaction volume of a ubiquitous same-day settlement capability across the ACH Network. The features of this capability would likely consist of two new same-day settlement times each banking day, in addition to the existing overnight settlement capability.
04/25/2014
SWIFT Updates Directory for Corporate Treasurers, Banks
SWIFT has launched a new version of its Bankers World Online directory for its corporate and banking clients. The financial messaging provider said that the upgraded directory provides more data coverage, a wider breadth of financial information, and new features and functionalities.
SWIFT has launched a new version of its Bankers World Online directory for its corporate and banking clients. The financial messaging provider said that the upgraded directory provides more data coverage, a wider breadth of financial information, and new features and functionalities.
04/25/2014
AFP Reg Report: New Rules for EU, U.S. Banks
Recent regulatory developments relevant to treasury and finance professionals are reviewed in the AFP Reg Report. In this issue: The EU ‘banking union’ package, Basel III, cybersecurity legislation, business tax provisions, and more.
Recent regulatory developments relevant to treasury and finance professionals are reviewed in the AFP Reg Report. In this issue: The EU ‘banking union’ package, Basel III, cybersecurity legislation, business tax provisions, and more.
04/24/2014
April 2014 Futures in Finance Newsletter
This month's edition of Futures in Finance provides a preview of AFP Exchange's upcoming focus on leadership. We begin with an interview with Cris Barros, treasurer of Mosaic. Barros looks back on his career, and explains the skills that he considers to be critical for leading. Up next, executive recruiting firm Spencer Stuart discusses four leadership traits that employers can look for when hiring new treasury candidates.
This month's edition of Futures in Finance provides a preview of AFP Exchange's upcoming focus on leadership. We begin with an interview with Cris Barros, treasurer of Mosaic. Barros looks back on his career, and explains the skills that he considers to be critical for leading. Up next, executive recruiting firm Spencer Stuart discusses four leadership traits that employers can look for when hiring new treasury candidates.
04/24/2014
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