Find Your Niche In The Financial Industry

by Glenn Curtis (Contact Author | Biography) The financial industry is a fairly easy industry to break into, but carving out a viable long-term career niche is tough. It involves discipline, intelligence and a thick-skinned psyche. But even beyond these necessary mental traits, there are many different positions in the financial services industry, and it often takes years for individuals to find and settle into a position that is a good fit for them. So what job is the best fit for you? In this article, we'll give you the tools you need to begin making this important decision. Character Traits In general, if you are a persuasive and knowledgeable individual and don't mind working long hours, a job as a registered representative might be a good fit. If, on the other hand, you love numbers, are good at math and excel spreadsheets, and relish delving into the financials of a public company, then perhaps a career path as an analyst is your best bet. If you have both skill sets, a position as a financial advisor could suit you best. (For more on these financial careers, see Taking The Lead In The Interview Dance, Is A Career In Financial Planning In Your Future?, Becoming A Financial Analyst and What Is A Registered Investment Advisor?) Of course, it's important to understand that most people that enter the brokerage industry don't end their careers in the same position in which they begin. Most use the knowledge and experience they gain in their initial positions in the industry to find other positions that suit their interests more. Where you end up depends on your aptitude and your desire to explore different job options. Degree Work Twenty years ago it wasn't uncommon for individuals in the financial industry to come from varied backgrounds. These days, a four-year college degree is a must. Typically, a bachelor's degree in business administration is the best course. It opens the most doors as well as gives the potential job applicant more alternatives should he or she want to deviate from his or her initial career path down the line. (For related reading, see Invest In Yourself With A College Education.) MBA: Worthwhile? If your goal is to become a registered representative and sell securities, you do not need an masters in business administration (MBA). However, if you want to break into some of the more prestigious firms' training programs (such as Goldman Sachs), it will help to earn your MBA. As an analyst, it is rapidly becoming a must. Keep in mind that this is a highly competitive industry, and this additional degree will help set you apart from the crowd. While there are instances in which a diploma from a big-name school will help you, employers are becoming more focused on class rank and grade point average, as well as any practical

experience you've had in the field. With that in mind, if you want to become a money manager, financial planner or enter some other specialized field within the industry, an MBA is highly recommended. To be clear, you can still obtain a position in these fields without an MBA, but preference is usually given to candidates that have had some form of post-graduate study. In the MBA program, consider studying finance and economics. Again, these will open the most doors for you later in your career. Internships Internships are available for those who want to obtain positions as analysts, bankers, registered reps or virtually any other position on Wall Street; therefore, in an undergraduate or a graduate program, it is important to try to land an internship in the field in which you want to work. Prospective brokers and/or analysts should try to get a job as an assistant at a local firm. This is the type of experience that employers want to see on your resume! What if you know you want to get into the industry, but don't know exactly what type of job you ultimately want or what type of internship to take? It's perfectly OK if you want to get into the industry but don't yet know what type of job you are aiming for. If this is the case, consider taking any front-line sales or office positions that will allow you to learn as much as possible about the industry. Again, this experience will look great your resume, and will educate you on what you might like to do down the line as you gain more experience. Securing Work Experience The first step in getting the appropriate work experience is to check with your college. Often, the student services center or a guidance counselor may be able to provide you with local job listings, or actually set up interviews with potential employers. If this doesn't work out, or if the position isn't feasible because of your school schedule, consider approaching firms close to home on your own. Obviously, we all like to be paid for our time, but consider working for free during your internship - that is, as long as you receive a letter of recommendation for your work from your supervisor. In the long run, this is the best compensation you can ask for and your first employer may even start you off in a higher position or at a higher salary as a result of your experience. Securities Licenses Obtaining securities licenses is almost sure to advance your career in the financial services industry. As a broker, you will need a Series 7 license and a Series 63 license. This will allow you to sell stocks, bonds, and other variable securities in both your home state and other states, assuming that you and your firm become registered in those states. Additional licenses may be required as you move up the corporate ladder. For instance, if you obtain a managerial position, you may be asked to obtain your Series 24, or principal's license. Your firm will sponsor you for these licenses. But be forewarned: These exams are difficult and require a great deal of reading

and memorization. Analysts may also be asked to take the above-mentioned examinations as well as a Series 16 supervisory analyst exam, which allows them to issue and distribute reports. Additional training may require the analyst to sit for the Chartered Financial Analyst (CFA) exam sessions. This series of three rigorous exams will test your financial knowledge and enable you to obtain higher-level advisory positions with hedge funds or mutual funds as a portfolio manager. (For related reading, see What Does "CFA" Mean?) The Series 7 is typically the base license. For those who want to become options principals, for example, the Series 4 license will probably be required. For those that want to branch off down the line and become equity traders, this would require a Series 55 license. In short, whenever you branch off to specialize in a given field, an additional license will be needed, and your firm will sponsor you for that. You cannot take those exams without being an employee of an NASDregistered firm and, typically, you must first attain your Series 7 qualifications before sitting for any specialized licensure. Training Programs Many firms do not offer sophisticated training programs. When this is the case, the would-be broker or analyst typically starts off as someone's assistant. This is an entry-level position that will allow you to move up the ladder, depending on your aptitude and level of ambition. There is also a large number of firms, particularly the larger bulge bracket companies, that offer formal training programs that can last for a year or more and where your production, and/or progress is tracked and measured regularly against your peers. Often, these programs are very stressful, as they are typically considered to be your probationary period. The good news is that if you make it through these training programs, your odds for success within the industry improve dramatically. Moving Up The Ranks In some jobs, seniority is a major factor in moving up the corporate ladder. Although seniority might help you in your Wall Street job, typically only the smartest, most aggressive employees advance. This means that you must know your job and be diligent. You must also constantly measure yourself against your fellow employees to determine whether your skills measure up. This may mean staying late or putting in some extra work to make sure your projects are top notch. Long-Term Career Objectives Analysts seem to have the most career choices. Analysts can become producing brokers and can even make the switch to becoming financial writers. Brokers can make those same switches, but it is much harder. This is because a broker is usually only involved in the sales process, and has little or no involvement in the research process. In addition, they often have very little opportunity to hone their writing skills, which is vital to becoming an analyst. That said, many brokers go on to decide that they want to specialize in options, or to become branch managers. In this case, their sales experience puts them on a better path to achieving that

goal. Bottom Line Breaking into the financial services industry isn't too difficult, but building a career and earning a reputation as a savvy player is tough. You should expect the process to be mentally trying and time consuming. Succeeding and moving up the corporate ladder will depend on your desire to succeed and beat out increasingly stiff competition. To continue reading on this subject, see Making The Most Out Of Your Day. by Glenn Curtis (Contact Author | Biography) Glenn Curtis started his career as an equity analyst at Cantone Research, a New Jersey-based regional brokerage firm. He has since worked as an equity analyst and a financial writer at a number of print/web publications and brokerage firms including Registered Representative Magazine, Advanced Trading Magazine, Worldlyinvestor.com, RealMoney.com, TheStreet.com and Prudential Securities. Curtis has also held Series 6,7,24 and 63 securities licenses. ** This article and more are available at Investopedia.com - Your Source for Investing Education **

CIPM: The Key To A Niche Career In Finance

by David Allison (Contact Author | Biography) Are you looking for a career as a key player in the highly competitive field of finance? The increasing complexity of investment strategies used by large financial institutions and the growing acceptance of the Global Investment Performance Standards (GIPS) has created a greater need for ethical professionals who know how to measure, present and explain complicated investment performance numbers to sophisticated investors. The CFA Institute has answered this need with the Certificate in Investment Performance Measurement (CIPM) designation. This designation is global, not held by many, and can be an excellent way to get your foot in the door at some of the world's most prestigious financial institutions. Read on to find out more about how to obtain this highly specialized designation and some of the exciting careers that are available to holders of the CIPM designation. (For more on the CFA Institute, read Does Study End After The CFA?)

What Is the Purpose of the CIPM Program? According to the CIPM Association, the CIPM program was developed by the CFA Institute as a specialty credentialing program that develops and recognizes the performance evaluation and presentation expertise of investment professionals who "pursue excellence with a passion." The program also provides a strict code of ethics to guide investment professionals throughout their careers. What Are the Requirements to Successfully Complete the Program? Program prerequisites: The only prerequisite to enter the CIPM program is that you must agree to abide by the CIPM Association Code of Ethics and Standards of Professional Conduct. You do this by signing a Candidate Professional Conduct Statement as part of each exam registration. This helps to protect the high standards of the CIPM exam and the integrity of the designation. Exam requirements: To be considered for the CIPM designation you must successfully complete two difficult exams: the CIPM Principles Exam and the CIPM Expert Exam. Both exams are computer-based and can be taken twice a year at designated testing centers in 80 different countries. One exam window is in the spring, and the other is in the fall, so it is possible to complete the program in one year. Speaking from experience, these exams should not be taken lightly. They cover some very thorny topics like attribution analysis of portfolios containing futures, multi-currency attribution analysis, and complex hedge fund risk ratios. The ethics portion of the exams will test your best judgment and you will have to know the GIPS standards "cold" to pass both exams. (To learn more about the GIPS standards, see A Guide To Global Investment Performance Standards.) The CIPM Principles Exam The principles exam consists of 100 multiple choice questions and is three hours in length. The current topic weights for this exam are: 15% ethical and professional standards, 45% performance measurement, attribution, and appraisal, and 40% the Global Investment Performance Standards. Historically, the pass rate for this exam is about 56%. The CIPM Expert Exam The expert exam consists of 80 "item set questions," or 20 different scenarios followed by four multiple choice questions, and is also three hours in length. The current topic weights are: 15% ethical and professional standards, 50% performance measurement, attribution, and appraisal, and 35% the Global Investment Performance Standards. Historically, the pass rate for this exam is about 50%. As far as studying for the exam, the online courseware provided by the CIPM Association is sufficient and easy to use. If you need a little coaching, the CIPM Association lists Ashland Partners and Company, The Spaulding Group, IEB and VBA as prep course providers to help you study for the exams. Like studying for any difficult exam, you should make a schedule for studying and stick to it. Some of the concepts are very advanced and take a lot of patience to master.

Experience Requirements Like any other respected financial designation, there are work experience requirements associated with the CIPM designation (although you can sit for the exams before you meet the professional experience requirements). Before you can earn the CIPM designation, you must first become a regular member of the CIPM Association. The CIPM Association recognizes either two years of experience in performancerelated positions or four years in the investment industry, and lists the following activities as qualifying work experience for regular membership: 1. Two years of professional experience in one or more positions substantially entailing performance-related activities, such as: calculating, analyzing, evaluating or presenting investment results. providing consulting, technological, legal/regulatory or accounting services directly in support of such activities. o verifying compliance with the GIPS standards. o supervising, directly or indirectly, persons who practice such activities set forth above. o teaching any of the above activities. 2. Four years of professional experience in the investment industry that consists of:
o o o o o o o

evaluating or applying financial, economic and/or statistical data as part of the investment decision-making process. marketing investment management services. monitoring an investment firm's compliance with applicable laws, regulations and standards. evaluating or recommending investment managers. teaching any of the above activities .

If you are a CFA charterholder, a regular member of the CFA Institute or an Associate of the Society of Investment Professionals (ASIP), you are exempt from the experience requirements. (For more on the CFA designation, see What Does "CFA" Mean?) Once you meet the ethical, expertise and exam requirements, you will be awarded the CIPM designation. To keep your designation current, you will have to fulfill 45 hours of continuing education credits every three years and sign a professional conduct statement annually. Career Opportunities Available to CIPM Designation Holders Before you go through the process of studying for many hours and taking two grueling exams you may be wondering what types of jobs are available to CIPM certificants. Most of the available careers are highly-specialized careers in the investment industry. The CIPM program equips you for a position as a performance analyst with a central vantage point for understanding an investment firm's assetgathering activities and decision-making processes, a position as an analyst at an accounting firm with a GIPS verification practice, or an analyst's position at an investment consulting firm that conducts manager searches and monitors institutional clients' investment results.

In addition, professionals working in investment firms' compliance, IT, portfolio accounting and marketing departments seek the CIPM credential, because it helps them do their jobs well. A list of the organizations that hire CIPM designation holders reads like a "who's who" of investment banks, investment management and research firms, GIPS verification firms, plan sponsors, and performance measurement software development companies. (Learn more about investment related career opportunities in Financial Career Options For Professionals and Finding Your Place In The Financial Industry.) Conclusion Although there is no golden key to a career with a prestigious financial institution, this designation should definitely help your resume float to the top of the pile. The CIPM designation is globally recognized and has the backing of the prestigious CFA Institute. Some of the best minds in the investment performance measurement business have earned the right to use this designation. If you are looking to show employers that you are dedicated, ethical, have a deep understanding of investment performance and know the GIPS "cold," then CIPM is the designation for you.

by David Allison (Contact Author | Biography) David L. Allison is vice president and the founding partner at Allison Investment Management LLC, an investment advisory firm offering managed accounts to high-net-worth investors and institutions. He received a bachelor's degree from the University of North Carolina at Wilmington where he majored in finance. He currently holds the Series 7 and Series 66. David has earned both the Chartered Financial Analysts (CFA) and the Certificate in Investment Performance Measurement (CIPM) designations. He is an advisor to CFA Institute serving on the CIPM Examination Review Panel. He is a member of the CFA Institute, the CIPM Association, the North Carolina Society of Financial Analysts (NCSFA), and the CFA Society of South Carolina, where he is a past President and currently serves on the Board of Directors. In addition, he is First Chair on the Coastal Carolina University Wall College of Business Finance Advisory Board. Securities are offered though Triad Advisors, Inc. Member FINRA & SIPC.

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