Risk & Compliance Qualifications

More and more, employers are looking to recruit people who have practical industry experience combined with qualifications. Having the right qualifications allows you to apply to a wider selection of vacancies, makes you a more valuable asset to your employer and adds variety to your working life. 

Although studying will mean sacrificing some of your leisure time, this is a long-term investment in your career and will show potential employers that you are committed to progressing.

Which course to take?

Assessing which course is appropriate for you and when to study is difficult and will depend on what is motivating you. Whether you are just starting your career in a new profession and need a specialist qualification, or you want to broaden your current skills, or even if you want to specialise in another field, outlined below is a brief overview of the many qualifications that are available and where to go for further information.

Ensure you have the right support

Before signing up to any course, take a moment to consider your current employer and their attitude to your studying. Will they support you financially in your studies? Will they allow you time off? Are you working in an environment conducive to learning where you can experience all areas of the business?  

If you would like some further information on qualifications, our consultants are always available to discuss your career options and which are the best qualifications for you.

Risk Qualifications

FRM – Financial Risk Manager

PRM – Professional Risk Manager

CFA – Chartered Financial Analyst

Compliance Qualifications

Certificate in Anti-Money Laundering

Diploma in Anti-Money Laundering

Certificate in Compliance

Diploma in Compliance

Diploma in Financial Crime Prevention

IAC - Investment Advice Certificate

IAQ - Investment Administration Qualification

FPC - Financial Planning Certificate

SIC - Securities Institute Certificates





FRM – Financial Risk Manager - www.garp.com/frmexam

Risk management professionals make decisions that can determine the fate of Corporations, funds, municipalities and other institutions, as well as their investors, in unstable periods.

The Financial Risk Manager (FRM) qualification is a guarantee that an individual has strong knowledge of independent risk management analysis and decision-making.

The FRM Examination takes place once a year in November, with tests in multiple cities around the world. Registration begins in March and continues until October.

Candidates taking the FRM examination fall into three categories: 

• New candidate: An individual registering to take the examination for the first time having not deferred.
• Returning candidate: One who has taken the examination previously but did not pass.
• Deferral candidate: An individual who registered in a previous year but asked for the date of their examination to be deferred. 

The FRM Examination is a 5-hour paper. There are around 140 question multiple-choice questions, split into two sections in booklet form. Candidates are expected to issues in a comprehensive way, as the papers are not broken down into specific categories and each question is posed as a real issue.

Topics & Weightings
 

Topic coverage and weightings are as follows: 

• Quantitative Analysis - 10%
• Credit Risk Measurement and Management - 30%
• Market Risk Measurement and Management - 30%
• Operational and Integrated Risk Management, Legal, Accounting and Ethics – 30%
• I. Quantitative Analysis - 10% 
• II. Market Risk Measurement and Management - 30%
• III. Credit Risk Measurement and Management - 30% 
• IV. Operational and Integrated Risk Management, Legal, Accounting, and Ethics - 30% 

 

PRM – Professional Risk Manager - www.prmia.org/INDEX/prm-cert.php

The PRM program is designed to aid professional risk managers’ development. It was formed by a coalition of PRMIA members, all of which are industry leaders.

The PRM qualification is designed to enable you to demonstrate your understanding of:

The classic finance theory underpinning risk management.

• Mathematical foundations essential to risk measurement.
• The foundation of option theory.
• Financial instruments and associated risks.
• Daily form and function of trading markets.
• Practices involved in risk management.
• Failed systems and practices from major risk events.
• The PRMIA Standards of Best Practice, Conduct and Ethics.
• PRMIA's Bylaws, ensuring member control of the association.

Providing greater flexibility, the course can be taken as a six-hour exam in one day or as four exams, each of which varies in length from one to two hours. The latter can be taken over a period of two years in any order. 

The subject matter of the PRM program as follows:

Exam 1 – Finance Theory, Financial Instruments and Markets.

Finance theory                                                            

Financial instruments

Markets

Exam 2 – Mathematical Foundations of Risk Management.

Calculus

Linear algebra                                                                                              

Probability                              

Exam 3 – Risk Management Practices.

Market risk                                                                                                

Credit risk                                                                               

Operational risk                 

Exam 4 – Case Studies, PRMIA Standards of Best Practice, Conduct and Ethics.

CFA – Chartered Financial Analyst - http://www.cfainstitute.org/

The CFA is awarded to Financial Analysts who have taken and passed three examinations set by the CFA Institute over the course of three years. Three years’ of professional investment experience is required for a student to take on the course of study. Many firms consider the CFA qualification to be a prerequisite before an investment professional can look to gain progression within their firm.

The entry requirement for this qualification is a four-year degree, ideally in a financial discipline, or four years’ experience of working as a qualified financial professional. It is also possible to study for the course with four years of combined college study and work experience. When applying you will be expected to pay a registration and fee alongside an enrolment fee.

The course is made up of three levels, with an examination at the end of each. It is expected that you will study for approximately 250 hours to effectively revise the required knowledge.

In each of the three modules you will cover the following topics:

• Ethical & Professional Standards
• Quantitative Methods
• Economics
• Financial Statement Analysis
• Corporate Finance
• Investment Tools
• Analysis of Equity Investments
• Analysis of Fixed Income Investments
• Analysis of Derivatives
• Analysis of Alternative Investments
• Asset Valuation
• Portfolio Management

 

Certificate in Anti-Money Laundering - International Compliance Association

The Certificate in Anti Money Laundering Awareness (the Certificate) is designed to equip employees within the financial services sector with a high level of awareness and practical understanding of the vulnerabilities of different industry sectors to the threat of money laundering and terrorist financing.

The Core Module covers:

• Understanding Money Laundering
• Anti Money Laundering Laws
• Identifying Money Laundering Activity
• Handling the Risk of Tipping off
• Terrorist Financing – how does it differ from money laundering?
• Politically Exposed Person Risk (PEP Risk).

You will then study one of the Specialist Modules from:

• Trust and Company
• Banking
• Insurance and Investment Business
• Management Module (for those delegates who have management responsibility or aspire to management positions)

The average delegate studying for the programme should be able to complete the Certificate in 1-3 months.

Diploma in Anti-Money Laundering - International Compliance Associstaion

There is a growing recognition in light of the seriousness of the threat of money laundering, of the value of professionals with the necessary skills to protect businesses against criminally derived property and relationships with clients engaged in or benefiting from criminality.

The Anti Money Laundering Diploma consists of 10 modules:

Module 1 International Anti Money Laundering Strategies

Module 2 National Anti Money Laundering Efforts

Module 3 Money Laundering Techniques and the Vulnerabilities of Specific Financial Services Products

Module 4 The Duties and Responsibilities of the MLRO/MLPO

Module 5 Recognition, Handling and Reporting Transactions

Module 6 Post Reporting Considerations

Module 7 Dealing with the Authorities

Module 8 Designing a Comprehensive Anti Money Laundering Framework for a Financial Services Business

Module 9 Knowing Your Customer in Practice and Risk Profiling

Module 10 Engendering an Effective Compliance Culture and Maintaining a High Level of Awareness

Entry requirements

• Sound educational background e.g. degree or professional qualification in an appropriate discipline or;
• Having completed the Foundation Certificate in Compliance Practice or;
• Three years relevant work experience.

The average delegate who spends six hours per week studying for the programme should be able to complete a diploma in 9-12 months. Delegates who can dedicate more time can complete the programme in a shorter period.

 

Certificate in Compliance (UK) - International Compliance Association

This programme should take students between six and nine months to complete and will focus on core compliance competencies, including anti-money laundering skills, before specialising into industry specific modules. The modules will include:

Syllabus content

Core modules – all students are required to study the core modules that cover the following topics and issues:

• Regulatory environment
• Relationship with regulators
• Role of the compliance officer
• Key compliance issues (including developing systems and controls, conflicts of interest, personal dealing, data protection, complaints handling, etc)
• Understanding financial crime and money laundering

Specialist modules – students are required to select at least one sector to study from the following:

• Investments
• Life Assurance
• General Insurance
• Mortgages
• Intermediaries

Diploma in Compliance (UK) - International Compliance Association

The Diploma in Compliance is a recognised indicator of professional competence for compliance professionals within the financial services sector.

The Compliance Diploma consists of:

Module 1: The Regulatory Environment

Module 2: The Compliance Function

Module 3: Key Compliance Issues

Module 4: The Compliance Environment

Wholesale Specialist Units

Retail Specialist Units

Entry requirements

• Sound educational background e.g. degree or professional qualification in an appropriate discipline or;
• Having completed the Certificate in Compliance or;
• Three years relevant work experience.

Diploma in Financial Crime Prevention - International Compliance Association

The Financial Services Sector has increasingly become exposed to fraud and other financial crime with over a half of all organisations becoming victims in recent years.

Who is the course aimed at?

• Fraud and investigation officers and managers
• Risk officers and managers
• Money laundering reporting officers
• Managers with responsibility for internal organisational fraud, financial crime and anti money laundering controls
• Compliance officers
• Accountants, Lawyers, Company Secretaries
• Police and FIU/FCU Staff
• Internal Audit and regulatory staff

Modules:

Module 1: An Introduction to Financial Crime

Module 2: Financial Crime – The UK Framework

Module 3: The Prevention and Detection of Specific Financial Crime Risks

Module 4: Investigation, Prosecution and Recovery

Entry requirements

• Sound educational background e.g. degree or professional qualification in an appropriate discipline or;
• Three years relevant work experience.

IAC - Investment Advice Certificate - www.securities-institute.org.uk 

An FSA recognised qualification, the IAC is designed for the independent financial advisor. It serves as confirmation of the credibility of advice being given. 

It is specifically for those who advise on investments, advise on stakeholder pension decisions or supervise administration relating to life policies and stakeholder pension schemes.

The qualification is developed and monitored by practitioners from all major investment sectors, ensuring that the demands of the exam are supported by your work-experience. It requires you to handle realistic scenarios, constructing portfolios using current market rates and investment strategies.

The IAC is recognised by the FSA as an Approved Examination for those who are:

- engaged in advising on investments which are packaged products, securities or derivatives;

- taking private customers through stakeholder pension scheme decision trees;

- engaged in supervising administrative functions relating to the effecting of life policies and operating stakeholder pension schemes.

The qualification is made up of three papers.

Paper 1 - An Introduction to Financial Services

Paper 2 - Investment, Savings and Protection Products

Paper 3 - Financial Advice

 

 
 

IAQ - Investment Administration Qualification - www.securities-institute.org.uk

An FSA approved examination. This qualification is for support staff for overseeing administration activities, for example, financial services administration, settlements and junior analysts.

The objective of the IAQ is to develop both your knowledge and understanding of a wide range of relevant and practical investment areas.

The qualification is awarded when three modules or two modules and one exemption are passed. Your module selection will depend on your individual circumstances. Candidates will generally fall into one of four groups.

1. Individuals currently working in a supervisory role in a company that is authorised and regulated by the Financial Services Authority. You will be required to take the following modules:

- Introduction to Securities and Investment

- FSA Regulatory Environment

- A technical module relevant to the role

2. Individuals working in a firm authorised and regulated by the Financial Services Authority, who will not be taking on an overseeing role, may, if agreed by their firm, select any three modules.

3. Those working for firms that aren’t authorised and regulated by the Financial Services Authority. This also applies to firms based offshore if their firm agrees. Individuals may select any three modules but are asked to consider passing Introduction to Securities and Investment first and then select two modules from the following:

- Global Custody

- Global Settlement

- Operational Risk

4. Those entering the IAQTM examination privately are advised to take Introduction to Securities and Investment and FSA Regulatory Environment as two of the three modules, but may select any three modules.

FPC - Financial Planning Certificate - www.cii.co.uk/cii.aspx

The FPC qualification is set by the Chartered Insurance Institute and is approved by the FSA. The qualification aims to provide an understanding of the basics of the financial services market for its students. It is divided into two papers and covers the provision of financial advice, investment products and regulatory issues as well as investment and risk. The examination is broken down into units which can be taken online, with instantaneous results. For each unit a ‘Record of Achievement’ is awarded.

Upon qualification you will meet the standards required by the FSA for those looking to become Financial Advisers. In addition, should you wish to study the Diploma in Financial Planning, qualification in the FPC will fulfil the entry level requirements.

The qualification covers the following areas.

- Pensions

- Long Term Care Insurance

- Mortgages


SIC - Securities Institute Certificates - www.securities-institute.org.uk

Formerly known as the FSA Registered Persons Examinations, the Securities Institute Certificates are a series of examinations designed to satisfy the FSA examination requirements for those individuals seeking Approved Persons status. These examinations are relevant to those working in financial services, especially those giving financial advice.

These exams now include the Certificate in Investment Management. This has received regulatory approval for individuals working in investment management, advice and customer trading.

The Certificate Programme

The Certificate course sets out to meet the requirements of those working in the securities and derivatives markets looking to obtain Financial Services Authority (FSA) Approved Person status. Gaining a Certificate qualifies you to operate in advising and dealing in securities and derivatives and also managing investments. 

To achieve the overall qualification candidates must pass:

Unit 1 - Financial Regulation (formally known as the Regulatory Paper)

and choose a pathway from the Units below:

Unit 2 - Securities

Unit 3 - Derivatives

Unit 4 - Securities and Financial Derivatives

Unit 5 - Investment Management

(The Certificate in Corporate Finance continues as now, pending its submission for accreditation to the QCA.).