Ratified 13th November, 1997
NAME 1. The name of the Federation is "THE INTERNATIONAL FEDERATION OF TECHNICAL ANALYSTS INC". PURPOSE OF THE FEDERATION 2. The purposes for which the Federation is established are: (a) To provide a centralized international exchange for information, data, business practices, local customs, and all matters related to technical analysis in various. financial centers. (b) To provide meetings and encourage the interchange of material, ideas and information for the purpose of adding to the knowledge of the members of the individual Member Societies (c) To foster the establishment of societies of technical analysts around the world. (d) To encourage the highest standards of professional ethics and competence among technical analysts worldwide. And in furtherance of these purposes and subject to the limitations contained in Clause 3, the Federation shall have the following powers: (e) To make, draw, accept, endorse, discount, execute and issue promissory notes, bills of exchange, bills of lading and other negotiable or transferable instruments. (f) To take any gift of property whether subject to any special trusts or not for any one or more of the purposes of the Federation. (g) In furtherance of the purposes of the Federation to amalgamate with any companies, institutions, societies or associations having purposes altogether or in part similar to those of the Federation and which shall prohibit the distribution of its or their income and property among its or their members to an extent at least as great as that imposed upon the Federation under this constitution. (h.) In furtherance of the objects of the Federation to purchase or otherwise acquire and undertake all or any part of the property, assets, liabilities and engagements of any one or more of the companies, institutions, societies, or associations with which the Federation is authorized to amalgamate. (i) In furtherance of the purposes of the Federation to transfer all or any part of the property, assets, liabilities and engagements of the Federation to any one or more of the companies, institutions, societies or associations with which the Federation is authorized to amalgamate. (j) To do all such other acts and things as are incidental or conducive to the attainment of the purposes and the exercise of the powers of the Federation. 3. (i) The income and property of the Federation howsoever derived shall be applied solely towards the promotion of the purposes of the Federation as set forth in this Constitution and Bylaws (as amended from time to time) and, subject only to sub-clauses (ii) and (iii) below, no portion thereof shall be paid or transferred directly or indirectly by way of dividend, bonus or otherwise by way of profit to members or colleagues of the Federation. (ii) Nothing herein contained shall prevent the payment in good faith for or on account of any of the following: a) reasonable and proper remuneration to any officer, Member Society or colleague of the Federation in return for any services actually rendered to the Federation and repayment of out of pocket expenses reasonably and properly incurred in the performance of such services provided that no member of the Board shall be paid a salary or fee in respect of the appointment to or the holding of any office of the Federation. (b) goods and or services supplied to the Federation in the ordinary course of Business (c) interest on money lent to the Federation at the rate for the time being charged by bankers in New York for overdrawn accounts (d) reasonable and proper rent for premises demised or let to the Federation |
(iii) Nothing herein contained shall prevent the payment of any amount pursuant to sub-clause (ii)(d) of this clause to any company of which a Member Society or colleague may be a member. (iv) Each Member Society will be autonomous and the Federation has no authority or power over the Member Society except to the extent permitted by this Constitution and Bylaws. The Federation is not permitted to endorse, recommend or in any other way indicate its approval of any financial instruments, goods, services, organizations, individuals, or any course of action in or specific method of trading a securities market. Back to the top MEMBERSHIP 4. There shall be two (2) classes of membership in the Federation consisting of Member societies and Developing Societies. 5. Member Societies must have at least five individuals (called colleagues) who are technical analysts, who subscribe to a code of ethical conduct acceptable to the Federation and who meet regularly. 6. Developing Societies may be started by any individual who intends to establish a Member Society within a period of at least two years. During that period of time the Developing Society may attend meetings of the Federation and receive all newsletters and meeting notices but shall not be entitled to any of the other privileges or obligations of the Member Societies. At the expiry of two years the Developing Society must apply for membership of the Federation as a Member Society or may continue as a Developing Society on such terms as the Board of the Federation shall determine. An existing Society or Association of technical analysts that is not currently affiliated with IFTA may apply to become a Member Society. Such application will be requred to meet all of the same criteria that a Developing Society applicant must meet. The Boad of Directors reserves the right to decide whether such an applicant will be considered for Member Society status, or instead, Developing Society status. Back to the top PRIVILEGES AND OBLIGATIONS OF MEMBER SOCIETIES 7. Member Societies shall be entitled to attend and vote at general meetings of the Federation. Each Member entitled to vote shall have the number of votes determined by clause 40 which will be exercised by a colleague nominated by the Member Society from time to time and who shall be known as the IFTA Liaison. 8. Each Member Society shall furnish to the Federation such particulars and information as the Board of the Federation shall from time to time require and in addition shall inform the Federation of any changes thereto from time to time. Back to the top CONDITIONS GOVERNING MEMBERSHIP 9. The over-riding principle of the Federation is that only one (1) Member Society from each country shall be permitted to join the Federation. Exceptions to this principle will require the affirmation of two-thirds (2/3) of the Board of Directors on a case-by-case basis. 10. Each application for membership shall be made to the Membership Committee Chair-person and shall be accompanied by copies of the applicants constitution, a brief history together with a statement of its current activities, a list of its colleagues and one year's membership fee in advance. The Membership Committee shall consider each application and the Chairperson shall pass his recommendation to the Board. All applications for membership must be submitted to the Board for its consideration and, if thought fit, approval. 11. The Board shall determine the annual membership fee and the due date for payment. 12. On or before December 31 in each and every year each Member Society must: (a) confirm in writing that they continue to meet the minimum requirements of membership in the Federation, as amended from time to time and (b) provide a current updated list of colleagues. |
13. Member Society which has failed to provide the information required by clause 12 above by the due date or within sixty days of a request in writing from the Board to do so or pay its annual membership within sixty days of the due date shall be excluded from membership and its name shall be removed from the register of members. A Member Society excluded from membership for a failure to pay its annual membership fee shall only be reinstated on payment of the oustanding fee and with the approval of the Board. 14. Any Member Society shall be entitled to resign its membership on giving notice in writing of its intention to do so. 15. Where a Member Society has failed to meet the minimum requirements of membership in the Federation and such a failure has continued for a period of sixty days after notice in writing has been given requiring such failure to be remedied or a Member Society has been alleged to have been guilty of conduct which is dishonourable or unprofessional or likely to bring the Federation into disrepute or has committed a breach of this Constitution and By-Laws or is otherwise discreditable or has acted against the interests of the Federation then the Board may may at a meeting consisting of not less than two thirds of its members pass a resolution by a majority of not less than three fourths of those present and entitled to vote to exclude that Member Society from membership. Back to the top BOARD 16. The Board shall consist of no fewer than ten members or such other number as determined by the Board from time to time, elected by the Member Societies for a period of three years. 17. The Board shall elect from its members a President, three Vice Presidents, a Secretary and a Treasurer who shall hold such office for a period of three years. 18. Upon expiration of their terms of office the retiring Board members shall be eligible for re-election but the President shall not be eligible to hold the position of President for a second consecutive term. 19. In the event of a vacancy or vacancies occurring on the Board, the President shall be entitled to appoint a person or persons to fill that vacancy or vacancies and such persons shall hold office until the next annual meeting of the Member Societies. 20. A member of the Board may resign by posting a notice of his intention to resign to the President and such resignation shall have effect upon the expiry of thirty days from the date of posting such notice or upon its earlier acceptance by the Board. 21. The office of a member of the Board shall be vacated if the member: (a) resigns his office by notice in writing; (b) a colleague of a Member Society that has been excluded from membership; (c) is absent from two consecutive meetings of the Board without reasonable cause; (d) becomes incapable of managing his affairs; (e) ceases to be a colleague of a Member Society. |
For the purposes of sub-clauses (c) and (d) of this clause "reasonable cause" and incapacity shall be determined by the Board at a meeting consisting of not less than two thirds of its members and any resolution must be passed by a majority of not less than three fourths of those present and entitled to vote. Back to the top POWERS AND DUTIES OF THE BOARD 22. The business of the Federation shall be managed by the Board which may exercise all such powers of the Federation as are not required by this Constitution and By-Laws to be exercised by the Member Societies in general meeting, provided that the exercise of such powers is not inconsistent with this Constitution and By-Laws. 23. The Board shall appoint, employ, engage, remove, discharge and dismiss all employees as it may consider necessary and shall regulate their duties and fix their salaries or remuneration. 24. The Board shall cause minutes to be made: (a) of all appointments of officers and employees other than casual employees: (b) of names of members of the Board present at meetings of the Board: (c) of meetings of the Board and general meetings of the Federation. |
25. Such minutes shall be signed by the President or in the absence of the President the Chairman of the meeting. 26. The Board may delegate any of its powers to one or more committees. Any committee so formed shall conform to the Procedures Manual or to any other regulations that may be imposed by the Board and subject thereto shall have the power to co-opt any colleague providing that any colleague so co-opted shall have no vote on the Board. Back to the top PROCEEDINGS OF THE BOARD 27. Meetings of the Board shall be summoned, on reasonable notice in writing by the Secretary under the direction of the President or one of the Vice Presidents or of any three other elected members of the Board. Any resolution that requires more than a simple majority shall be detailed in the notice of the meeting. Meetings shall be held in person and/or via facsimile transmission or by means of other telecommunication methods. 28. The quorum necessary for the transaction of business shall be a majority of Directors present in person or via facsimile transmission or telecommunication methods. 29. Except as otherwise required by this Constitution and By-Laws, questions arising at any Board meeting shall be decided by a majority of votes and a determination by a majority of the members of the Board present in person or via fax trasmission or other telecommunication method shall for all purposes be deemed a determination of the Board. 30. The President shall preside as Chairman at every meeting of the Board or if there is no President, or if he is not present within ten minutes after the time appointed for the holding of the meeting then the most senior (by date of appointment) Vice President shall be the Chairman. 31. All acts done by a meeting of the Board or by any person acting as a member of the Board shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment of any such member of the Board or person acting as aforesaid, or that the members of the Board or any of them were disqualified, be as valid as if every such person has been duly appointed and was qualified to be a member of the Board. 32. A resolution in writing signed by the required majority of the members of the Board for the time being entitled to receive notice of a meeting of the Board, shall be as valid and effectual as if it had been passed at a meeting of the Board duly convened and held provided that all members of the Board entitled to receive notice of the meeting received notice of the resolution to be passed. Any such resolution may consist of several documents in like form each signed by one or more members of the Board. Back to the top GENERAL MEETINGS 33. An annual general meeting of the Federation shall be held at the location of and on the day before the annual conference or in the event that there is no annual conference then at a location and on a date to be determined by the Board at least six months before the date of the meeting. All general meetings other than the annual general meeting shall be extraordinary general meetings. 34. An extraordinary general meeting of the Federation shall be convened by twenty one days notice in writing given by the Secretary upon a resolution of the Board requiring that such a meeting be convened or, within three months after receipt of a notice in writing signed by not less than five Member Societies. 35. The notice in writing shall specify the general nature of the business, the place, day and hour of the meeting or in the case of a meeting held by facsimile transmission or other telecommunications method shall specify the date, time and method of voting. 36. No business shall be transacted at any general meeting unless a quorum of members is present at the time when the meeting proceeds to business. A majority of members present personally or by proxy shall form a quorum. If at any such meeting a quorum is not present within half an hour of the time appointed for the holding of tbe meeting, the meeting shall stand adjourned to a day and hour fixed by the majority of the members present and at such adjourned meeting the members present shall form a quorum. 37. The Chairman of any general meeting may, with the consent of the meeting, adjourn the meeting from time to time and from place to place. 38. At each annual meeting of members each IFTA Liaison representing each Member Society shall submit a report to the meeting advising, in addition to any other relevant matters the following: (a) Membership; (b) Activities; (c) Educational activities and programs; (d) Financial status. |
Back to the top VOTES OF MEMBERS 39. At any general meeting a resolution put to the vote of a meeting shall be decided on a show of hands by a majority of those present and entitled to vote. Votes may be given either personally or by a proxy. The instrument appointing the proxy shall be in writing and signed by the appointor. 40. Any Member Society may, before or after a show of hands, demand a poll. If a poll is demanded it shall be taken in such manner and either at once or after an interval or adjournment or otherwise as the Chairman directs, and the result of the poll shall be the resolution of the meeting at which the poll was demanded. 41. Unless unanimously agreed by all those present and entitled to vote thirty days notice of each resolution must be given. 42. If a poll is demanded, voting will be distributed proportionately so that each Member Society shall have one (1) vote for every colleague. For the purpose of determnining the votes of Member Societies, each Member Society shall be deemed to have the number of colleagues nominated on December 31 of the prior year. No single Member Society shall be entitled to more than twenty-five percent (25%) of the total eligible votes. Electronic voting shall be permitted in all instances. Back to the top AMENDMENT OF THE CONSTITUTION AND BY-LAWS 43. The Constitution and Bylaws may be amended by a resolution of three quarters of the members present personally or by proxy at a duly constituted meeting of which at least six months notice in writing has been given of the date, time and place and giving written notice of the nature of the amendments. Back to the top BY-LAWS 44. The fiscal year shall begin on January 2. Terms of office shall become effective on the first day of the fiscal year. 45. The official language of the Federation shall be English. Back to the top PRINCIPLES AND POLICIES 46. The Federation asserts that the technical analysis of stocks, commodities, bonds, currencies, etc. price movement and the supply-demand relationships underlying them can make a vital contribution to the process of decision making involved in efforts to preserve and enhance the investors capital. The Federation makes this assertion on a number of grounds, including the following considerations: Technical analysis deals with the generally undisputed fact that the market price of a stock, commodity, currency etc. does not necessarily, nor indeed usually, at any given time coincide with its intrinsic value, which itself is often a matter of controversy. In dealing with the frequently very elastic differential between market price and underlying value, technical analysis and fundamental analysis, insofar as they relate to specific common stocks, commodities, currencies etc. and to all financial markets the world over, can properly be regarded as complementary, and, in fact, interdependent. In a broader perspective, technical analysis concerns itself also with supply-demand relationships affecting the equity, commodities, currency etc. markets as a whole and with potential future shifts in these relationships that may be instrumental in shaping future price movements. In pursuit of this concern, it extends to examination of flow of funds. Moreover, the tendency of price trends to persist and of investors' behavioral patterns to recur enables the technical analyst to recognize and anticipate potentially favorable or unfavorable investment environments. Indeed, the recognition of extremes in investor psychology is one of the technical analysts' unique contributions to the field of investment techniques. The Federation asserts, in sum, that the technical analysis of stocks, commodities, currencies, etc. price movements, and the supply-demand relationships underlying them, is a valid, indeed an indispensable, element in the formulation of a "reasonable basis" for investment decisions. The Federation dedicates itself to the widest possible dissemination and acceptance of these principles, and to promote the highest achievable standard of professional conduct, effort and scholarship among its Member Societies and Developing Societies in all areas within the purview of technical analysis. Back to the top GUIDELINE CODE OF ETHICS The technical analyst (colleague) must maintain at all times the highest standards of professional conduct. Implicit in the requirement is strict compliance with laws of the national, state and local governments which have jurisdiction over the analyst's professional activities. The analyst shall also obey the regulations of his/her local stock exchange and/or local regulatory authorities. The analyst shall not make statements which he/she knows or has reason to believe are inaccurate or misleading. He/she shall, in particular, be careful to avoid leading the audience to believe that his/her technically derived views of future stock price behaviour reflect fore-knowledge rather than estimates and projections subject to reexamination and, as circumstances may dictate, to change. The analyst shall not make statements concerning the current technical position of the stock market or any of its components or any of its aspects unless he/she can demonstrate that such statements are reasonable and consistent in light of the available evidence and of the accumulated knowledge in the field of technical analysis. New departures in technical analysis as well as modifications of existing techniques or concepts should be fully documented as to procedure and rationale. 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