We write a lot about the CFA and the MBA. There is a reason for this: both are popular among financial services professionals looking to get ahead. Both are broad-ranging qualifications which apply across a range of financial services jobs (although an MBA is broader). And in the case of MBAs at least, banks have special ‘associate entry programmes’ so that they can hire them.
However, there are innumerable other financial services-relevant qualifications out there. Many of them are more specific than the CFA or the MBA and focus on particular areas of the finance industry. Most aren’t mandatory. In the UK, the Financial Conduct Authority scrapped obligatory qualifications in 2007, unless you’re dealing with retail customers. The alternatives aren’t guaranteed to get you a job, but then what is nowadays? Best of all, they’re cheap – especially compared to the £64k ($103k) cost of tuition fees at the London Business School.
If you want to work in banking, but aren’t fixated on the front office and are prepared to look beyond the standard acronyms, these are the qualifications you should look out for:
Qualifications for banking compliance jobs
1. The CISI Diploma in Investment Compliance
Run by: The Chartered Institute for Securities and Investment
What they say: ‘The Diploma in Investment Compliance is a global qualification that offers a clear career pathway for compliance specialists and practitioners. It has recently been reviewed by industry practitioners and has been enhanced to reflect the changing needs of the financial services environment…This qualification provides candidates with the confidence of possessing a thorough understanding of the financial services regulatory environment both in the UK and internationally.’
Entry requirements: You’ll have to study the ‘Introduction to Securities and Investment Banking First. ‘
Cost: Around £1.2k, including tuition and exam fees.
Study time: You need to pass three exams to achieve the diploma. On average, the CISI says you’ll need to study for around 80 hours for each unit. Passing the diploma typically takes 18 months to three years according to BPP Professional education. The course is typically studied part time, and you’ll probably need to pay for tuition.
Pass rate: 70% for the first two units’s exams. 50% for the third.
Where to find out more: Click here.
What we say: The CISI diploma is best known in the UK market. It might help get you an interview, but it’s very unusual for a job to specify the diploma as a prerequisite.
2. The Advanced Certificate in Compliance
Run by: The International Compliance Association
What they say: ‘The ICA Advanced Certificates in Compliance is suitable for those new to compliance or in a junior role and will help you develop a good understanding of compliance fundamentals.These courses are endorsed by the British Bankers’ Association in the UK.’
Entry requirements: ‘Sound educational background’ and ‘good written English.’
Cost: £1.5k + VAT or local taxes if outside the UK.
Study time: The course lasts for six months and is provided by ‘International Compliance Training’, the ICA’s approved training provider. You’ll be studying at home but will participate in two ‘highly interactive workshops.’
Pass rate: Not provided.
Where to find out more: Click here.
What we say: An entry-level certificate in compliance. Good for people who want to work in money laundering and financial crime. You’ll need work experience to get a job – there are few jobs that specify this qualification as a necessity for compliance hires. UK-centric. Hardly anyone has this qualification on Wall Street or in Hong Kong or Singapore.
Qualifications for sales, trading or structuring jobs
3. The Institute of Fixed Income Derivatives Programme (IFID)
Run by: The International Capital Markets Association.
What they say: ‘Established for over 40 years as the qualification for the fixed income market, the IFID training programme puts emphasis on developing practical skills for trading, investment and risk management. This is a demanding, examined course aimed at developing a broad and in-depth knowledge of the key fixed income instruments, derivatives and markets.’
Entry requirements: There are no specific requirements, but the presumption is that you’ll already be working in banking. The ICMA says: ‘The programme is primarily intended for those working in client or market facing positions in fixed income within a bank or fund management company, although it is becoming increasingly popular with middle office and operations managers who require greater product and market knowledge. ‘
Cost: £3k for ICMA members and £3.9k for non-members if you take the classroom-based learning option. £1.5k and £1.95k respectively for the distance learning option
Study time: Residential study involves a one week course twice a year. Distance learning gives candidates flexibility to study in their own time, subject to a six month exam deadline.
Pass rate: Not provided.
Where to find out more. Click here.
What we say: Not mandatory, but IFID is known among fixed income traders and portfolio managers in London. Often used by back office people trying to gain product knowledge and move into the middle office. Again, less common in Asia and the U.S.
4. The CISI Diploma
Run by: The Chartered Institute for Securities & Investment
What they say: ‘The Chartered Institute for Securities & Investment (CISI) Diploma is the UK’s leading postgraduate finance qualification and covers the areas of securities, investment, compliance, derivatives, corporate finance and operations.’
Entry requirements: There are no formal entry requirements. But most candidates will have a degree.
Cost: If you’re paying for classroom tuition, it will probably cost you around £5k for the three units. If you’re teaching yourself, it will cost you around £1.8k in study materials and past papers.
Study time: You’re advised to study for 200 hours for each diploma unit (and you need to choose three). The diploma typically takes between 18 months and two years to achieve. You can either choose to study on your own, or can pay for training.
Pass rate: 44% to 80%, depending upon the papers you take.
Where to find out more: Click here. And here.
What we say: Very rarely specified in job descriptions. Popular among back and middle office (including compliance) staff who want to learn more about the products they’re dealing with.
5. The London Business School’s Masters in Finance
Run by: The London Business School
What they say: ‘Ranked number one by the Financial Times (2011, 2012, 2013 and 2014) the London Business School Masters in Finance is a highly specialist, technical postgraduate degree programme for experienced professionals who want to fast-track their careers in finance.’
Entry requirements: You’ll need at least two years’ experience in a financial services job to be eligible for the course. Most people have 3-6 years’ experience.
Cost: £38.5k.
Study time:10 months or 16 months (if you want to be able to complete an internship) full time; 22 months at weekends.
Pass rate: Not provided.
Where to find out more: Click here.
What we say: Expensive, but cheaper than an MBA. The pre-eminent qualification for London financial services professionals who want to escape the middle or back office. Better for sales and trading than corporate finance (for the investment banking division, try an MBA).
6. The CQF (Certificate in Quantitative Finance)
Run by: Paul Wilmott, a well known quant.
What they say: “It [the CQF] is designed for in-depth training for individuals working in, or intending to move into, derivatives, IT, quantitative trading, insurance or risk management.”
Entry requirements: You’ll need to be (very) good at maths. Before you can start the course, you’ll have to complete a maths test.
Cost: Around £12k.
Study time: Four hours per week (delivered in the form of two two hour long weekly CQF lectures, delivered via webcast) for six months. You can watch a sample lecture here.
Pass rate: Not provided.
Where to find out more: Click here.
What we say: The CQF has good international recognition and will sometimes be specified on job descriptions. It’s good if you want a risk modelling or model testing role, or if you want to be a quantitative developer building computer models for the quants who design banks’ complex derivative products. Most ‘front office quants’ will have a PhD or an MSc.
7. Series 7 (Full name: the General Securities Representative Exam)
Run by: The U.S. Financial Industry Regulation Authority. (FINRA)
What they say: ‘The Series 7 Examination is designed to assess the competency of entry-level General Securities Representatives…The Series 7 Examination is the General Securities Representative Qualification Examination.’ [In other words, you have to pass the Series 7 if you want to work in sales or trading - but only if you want to work in the U.S.)
Entry requirements: You have to be working for a FINRA-member firm and they have to sponsor you. Series 7 isn't really open to anyone...If you've been working in the UK, you might be allowed toskip some of the modules.
Cost: Employers usually pay.
Study time: You'll probably need to study for 1-2 hours per day for six to eight weeks.
Pass rate: Around 66%.
Where to find out more: Click here.
What we say: You'll have to have the Series 7 in the U.S. Hardly anyone has it in London or Hong Kong - unless they've transferred from Wall Street.
For the risk professional
8. 'Risk in financial services'
Run by: The Chartered Institute for Securities & Investment
What they say: 'The Risk in Financial Services qualification provides candidates with a broad understanding of the key risks that arise within financial services...The qualification is suitable for risk and compliance teams, branch management, corporate lawyers, finance officers, senior managers of all disciplines and existing and aspiring non-executive directors.'
Entry requirements: None given. However, the presumption is that you'll be working in risk or compliance already.
Cost: Expect to pay around £300 in exam fees. Or, £1.3k if you want tuition.
Study time: 100 hours for the Risk in Financial Services. An extra 70 hours if you want to supplement it with 'UK Financial Regulation'. Some training providers off a three day intensive course.
Pass rate: 62%
Where to find out more: Click here.
What we say: Rare.
9. 'Professional Risk Manager Qualification'
Run by: The Professional Risk Managers' International Association (PRMIA)
What they say: 'The PRM™ designation is an independent validation of skills and commitment to the highest standard of professionalism, integrity, and best practices within the risk management profession.'
Entry requirements: 'The only prerequisite to attempting the PRM exams is membership of PRMIA.' - If you're a student, this will cost you $50 for six months.
Cost: $1.1k
Study time: Candidates are required to pass four exams, varying in length from one to two hours. You'll need to purchase exam vouchers along with study materials and the PRM handbook. The vouchers expire within three years of purchase.
Pass rate: 65%.
Where to find out more: Click here.
What we say: A well recognized international qualification. Often specified as a prerequisite for risk jobs in the U.S.
10. 'The International Certificate in Banking Risk and Regulation (ICBRR)
Run by: The Global Association of Risk Professionals (GARP).
What they say: 'The International Certificate in Banking Risk and Regulation (ICBRR) delivers a deep, qualitative understanding of risk management methodologies, governance structures for the management of risk in banks, and the regulatory principles outlined by the Basel Committee on Banking Supervision. Successful candidates will be better prepared to recognize potential problems associated with risk assessment, mitigation and management.'
Entry requirements: 'Candidates should have a fundamental understanding of banking, finance, and the technical terms commonly used in banking and risk management.' You're already expected to be working in risk, compliance or a related role. There's a long list of the job titles of people who take the ICBRR here.
Cost: $600.
Study time: Home study over a nine month period.
Where to find out more: Click here.
What we say: Less well known than the PRM. Alumni are mostly in the US.
11. 'The Financial Risk Manager's Qualification' (FRM)
Run by: The Global Association of Risk Professionals (GARP)
What they say: 'The Financial Risk Manager (FRM®) designation is the globally recognized standard for those who manage risk. Certified FRMs are part of an elite, global network, and are valued by top employers across diverse businesses.'
Entry requirements: To be able to use the FRM designation, you'll need at least two years' work experience in risk management, trading, portfolio management, academia, industry research, economics, auditing, risk consulting or risk technology.
Cost: $650-$950.
Study time: 100-400 hours.
Pass rate: 42.5% for part 1, 58% for part 2.
Where to find out more: Click here.
What we say: Popular qualification for risk managers, valuation specialists and product consultants. Recognized globally. Often specified alongside the PRM.
12. 'The International Certificate in Risk Management'
Run by: The Institute of Risk Management
What they say: 'The International Certificate in Risk Management is a practical qualification that provides a comprehensive introduction to the principles and practice of risk and risk management.'
Entry requirements: None in particular. - 'The qualification is the entry level qualification for anyone embarking on a career in risk management or working in a risk-related discipline.'
Cost: £4.5k ($7.3k) if you do the full diploma.
Study time: Three to five years, part time.
Pass rate: 60-70%.
Where to find out more: Click here.
What we say: Rarely seen in job descriptions. Most prevalent in the UK. Popular in retail banking and insurance firms.
For the corporate finance professional
13. The Diploma in Corporate Finance
Run by: The ICAEW in combination with the Chartered Institute for Securities & Investment.
What they say: 'The syllabus for the new Diploma in Corporate Finance has been designed to develop core technical, commercial and ethical skills and knowledge for those working in the field of corporate finance. Knowledge of fundamental techniques, theories and issues supports the handling of complex corporate finance scenarios.'
Entry requirements: You'll need to have passed the 'Certificate in Corporate Finance' first.
Cost: £850 in exam fees, more if you want to pay for tuition.
Study time: 300 hours for the diploma alone.
Pass rate: 69%.
What we say: Rare outside Europe. Not specified in job descriptions. Most common among strategists in corporates, accountants and lawyers. Good for Big Four accountants who want to move into M&A.
