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Qualifications are a great way to update your skills, inspire client confidence and take your career to the next level – and in some financial services graduate jobs they are compulsory.
Becoming a member of a professional body or completing most qualifications usually takes at least a year and comprises a number of exams and practical on-the-job experience. It is possible to study at an academic institution without working at the same time, but since most qualifications demand a certain amount of relevant work experience, most graduates opt to study alongside full-time work. This is also a popular method among financial services employers, many of whom design their graduate schemes around new employees undertaking qualifications in their chosen field.
While you study, financial services employers typically provide support such as:
It’s a good idea to ask about the types of support on offer at interview.
Sources of public funding for skills training are currently undergoing change, so it’s worth monitoring the media, keeping in touch with educational institutions or checking the Financial Services Skills Council (FSSC) website. The FSSC is the employer-led body that sets performance standards for the UK financial services sector.
More often than not your choice of employer will determine which professional qualification you work towards. However, if your employer offers you a choice or if you are choosing between employers that offer different qualifications, you should consider carefully what your future career plans are and not just focus on how many exams you’ll have to sit! It’s important to realise that no one qualification is easier than another. The differences lie in the focus of the syllabus, the financial services specialism in which you train and how you obtain the training.
Read on to determine what training and qualifications are necessary to work – or progress – in each area.
Your first step towards becoming an actuary is the successful completion of an Associateship – this is a valuable, internationally recognised qualification that proves you have met the minimum requirements and are an official member of The Actuarial Profession (the UK’s professional body of actuaries). To become an Associate, you must take a series of exams. These consist of:
You may be eligible for exemption from some of the exams if you have a relevant first degree or postgraduate qualification (eg in statistics, economics or actuarial science) under your belt – be sure to check this with The Actuarial Profession when you apply.
Graduate actuarial trainees study towards the CT/CA exams at their own pace, usually while attending additional professionalism courses and working full time to gain valuable on-the-job experience. The Associateship takes an average of three years. Although it can be a demanding process, passing the actuarial exams is almost a guarantee of a safe job and you’ll see a significant hike in salary upon qualification.
Most graduates set out to train towards a specialised Fellowship in the long term. It is not necessary to qualify at Associate level first. Studying for Fellowships allows you to develop expertise in a particular area such as life insurance; general insurance; pensions and employee benefits; health and care; finance; investment; or risk management. Senior actuaries often go on to fill management roles later in their career and, once qualified, can choose to practise anywhere throughout the world.
'Financial services employers typically provide support such as study leave, mentoring, networking, coaching and financial help while you study.'
If you want to give financial advice to customers, you need to pass an appropriate examination. Choices include:
All of these qualifications meet the appropriate standards for retail advice as dictated by the FSSC. To complete them you must pass modules on UK financial services; regulation and ethics; investment and risk; protection and retirement planning.
If you want to advise on mortgages you will first need to pass one of the following exams:
As well as UK financial services, regulation and ethics, these exams cover practice, products and policy.
If you’re keen to specialise in long-term care insurance you will need a further qualification such as the Certificate in Financial Planning and Long Term Care Insurance (CII).
If you want to advise on equity release, a qualification such as the Certificate in Equity Release (CII) or the Certificate in Regulated Equity Release (ifs School of Finance) is essential.
Some roles in the pensions industry require an appropriate qualification. Would-be pension transfer specialists need to first become an Associate or Fellow of the Pensions Management Institute. Pensions overseers need to complete an exam such as the Certificate in Financial Administration (CII).
There is no regulatory requirement to take professional qualifications for other jobs in the pensions industry, but your employer may encourage you to take them as part of your Continuing Professional Development (CPD).
Although the regulator requires you to ‘attain and maintain competence’, there are no specific qualifications required for roles within general insurance. Although exams are not compulsory, many companies encourage staff to take professional qualifications as part of a structured Continuing Professional Development (CPD) programme.
Popular qualifications include:
The average study time for each module is between 40 and 120 hours, depending on whether you are studying to certificate, diploma or advanced diploma level. Many holders of the Advanced Diploma in Insurance go on to become Associates or Fellows of the Chartered Insurance Institute.
Whatever your role within financial services it is likely that you will be expected to undertake CPD to keep your skills up to date. There are loads of ways to go about this but here are a few ideas:
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