This lesson examines the structure of the finance function and the different treasury structures available to organisations. According to the ACT, treasury departments are structured in different ways to best meet the needs of an organisation, varying in size and structure according to the complexity of a business .

2.1 The Structure of the Finance Function

The typical finance function includes the finance director, treasurer, and the finance team, with the treasury department operating as a distinct but integrated function . The responsibilities of the finance director, treasurer, and finance team are distinct but complementary .

2.2 Treasury Structure Models

The ACT identifies three primary treasury structure models :

  • Centralised Treasury: In a centralised model, group treasury or a shared service centre owns payment execution, approval routing, FX exposure, and reporting across all entities. Centralisation offers better control and cost efficiency . A centralised approach provides a macro perspective and enables leveraging systems and maintaining unified processes, which enhances bargaining power with banks . Over half of respondents (57%) in KPMG’s 2025 survey report that their treasury is now centralised, with a further 23% pursuing a hybrid model .

  • Decentralised Treasury: In a decentralised model, each entity or business unit manages its own payments, banking relationships, approvals, and FX decisions . Decentralisation offers flexibility and local expertise, which can be beneficial where local knowledge is required, though it can lead to slower decision-making and regulatory challenges .

  • Hybrid Treasury: A hybrid model combines group-level visibility and control with local execution. This structure balances control with flexibility and is a popular choice, with 23% of treasuries now operating this way .

2.3 Treasury Role Types

The ACT syllabus identifies three ways treasury can operate within an organisation :

  • Advisory Role: A small group of specialists located at head office who act as advisors.

  • Agency Role: Day-to-day treasury decisions are still made at local level by operational management but execution is centralised to obtain efficiencies and economies of scale .

  • In-House Bank Role: The central treasury acts as an internal bank with which all subsidiaries deal .

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