Financial Quantitative Analysts
Special Requirements
Financial analysts must have a bachelor's degree. Many positions require a master's degree in finance or a Master of Business Administration (MBA). Positions may also require professional licenses and certifications. However, licenses and certifications are generally only earned after someone is hired.
Education and training:
A bachelor's or graduate degree is required for financial analysts. Most companies require a bachelor’s degree in a related field, such as finance, business, accounting, statistics, or economics. An understanding of statistics, economics, and business is essential, and knowledge of accounting policies and procedures, corporate budgeting, and financial analysis methods is recommended. An MBA or a master's degree in finance is often required. Advanced courses or knowledge of options pricing, bond valuation, and risk management are important.
Licensure:
The Financial Industry Regulatory Authority (FINRA) is the main licensing organization for the securities industry. Depending on an individual's work, different licenses may be required, although buy side analysts are less likely to need licenses. The majority of these licenses require sponsorship by an employer, so companies do not expect individuals to have these licenses before starting a job. Experienced workers who change jobs will need to have their licenses renewed with the new company.
Other qualifications:
Strong math, analytical, and problem-solving skills are essential qualifications for financial analysts. Good communication skills are necessary because these workers must present complex financial concepts and strategies. Self-confidence, maturity, and the ability to work independently are important. Financial analysts must be detail-oriented, motivated to seek out obscure information, and familiar with the workings of the economy, tax laws, and money markets. Although much of the software they use is proprietary, financial analysts must be comfortable working with spreadsheets and statistical packages.
With the increasing global diversification of investments, companies are assigning more financial analysts to cover foreign markets. These analysts normally specialize in one country, such as Brazil, or one region, such as Latin America. Companies prefer financial analysts to have the international experience necessary to understand the language, culture, business environment, and political conditions in the country or region that they cover.
Certification and advancement:
Although not always required, certifications enhance professional standing and are recommended by employers. Certifications are becoming increasingly common. Financial analysts can earn the Chartered Financial Analyst (CFA) designation, sponsored by the CFA Institute. To qualify for this designation, applicants need a bachelor's degree, four years of related work experience, and must pass three exams. Applicants can take the exams while they are obtaining the required work experience. Passing the exams requires several hundred hours of self-study. These exams cover subjects such as accounting, economics, securities analysis, financial markets and instruments, corporate finance, asset valuation, and portfolio management. Additional certifications are helpful for financial analysts who specialize in specific areas, such as risk management.
Financial analysts advance by moving into positions where they are responsible for larger or more important products. They may supervise teams of financial analysts. They may become portfolio managers or fund managers, directing the investment portfolios of their companies or funds.
Required Fees:
Program costs include a one-time enrollment fee and a registration fee for each exam you take.
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June 2010 CFA Exam
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Levels I, II, and III
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Payment deadlines
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Program enrollment
(new candidates only) |
+
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Exam registration •
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=
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Total cost
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17 February 2010:
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$400
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+
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$710
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=
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$1110
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17 March 2010:
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$480
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+
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$955
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=
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$1435
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December 2010 CFA Exam
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Level I only
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Payment deadlines
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Program enrollment
(new candidates only) |
+
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Exam registration •
|
=
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Total cost
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|
17 March 2010:
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$400
|
+
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$620
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=
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$1020
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24 August 2010:
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$400
|
+
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$710
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=
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$1110
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15 September 2010:
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$480
|
+
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$955
|
=
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$1435
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• The exam registration fees also include the complete curriculum and one mock exam per level. Sample exams are available for $40.00 each.
The data sources for the information displayed here include: Virginia Career VIEW Research. (Using onet291)
