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Sun to launch new derivatives course

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Sun Financial Education (SFE) will launch a training course for financial planners and paraplanners that will help them understand derivatives and the application of these instruments in client portfolios.

"The course is written for financial planners," SFE owner Jop Werle said.

"There has been an increasing demand from planners to learn more about how derivatives work. Taking a put option on a portfolio can be quite an eye-opener."

Planners would also be taught how to read product disclosure statements of fund managers whose mandates allowed them to use derivates and identify the risk profile of those funds, Werle said.

SFE is in discussions with the FPA about continuing professional development points for the new course and the expectation is that seven points will be awarded for successfully completing the course.

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