FINDING EMPLOYMENT IN THE FINANCIAL SECTOR IN CANADA
Aizad AhmadMBA, MSc, CSC, CPH, PFPc, LLQP
Financial Advisor & Career Coach
AgendaMy Story: Edward Jones, RBC Insurance, Scotiabank
Job exploration tips
Career paths in the financial sector
Course Requirements: CSI, CIFP, Advocis
Companies to work for in the sector
Salary vs. Commission based?
Key qualities of a financial planner: People, Operations, Customer, Financial
Daily routine of a bank officer & insurance advisor
My StoryOct. 2004: Landed in Canada
Feb. 2005: Edward Jones Investment
Advisor trainee: CSC, CPH, LLQP
Dec. 2005: RBC Insurance: Insurance & Investment Advisor
Jan. 2007: Scotiabank PBO (Level 4), completed PFPc in 2008
June 2009: Financial Advisor (level 6)
Career Paths in the Banking Sector
Compliance
Financial Planning and Wealth Management
Investment Banking
Portfolio Management
Research & Analysis
Risk Management Trading
ComplianceEmployees in compliance protect the integrity of a firm, its finances and its client accounts. Duties include making sure regulatory requirements are met, guarding against irregularities in financial transactions, investigating complaints as well as managing internal and regulatory policies and procedures.
Courses: CSC, CPH, CIC, PFPc
Entry-level salaries in a compliance department may range from $30,000 to $40,000. Senior Compliance Officers can earn salaries in the $50,000 to $100,000 range, plus a bonus based on their employer's overall performance, while Chief Compliance and Chief Financial Officers can earn well over $150,000
Investment BankingHere, you could help companies or governments raise money by issuing securities. Or you could arrange financing for corporate mergers and acquisitions. It's not an easy field to get into, requiring strong analytical and communication skills.
Investment Bankers are, in most cases, expected to have completed their post-secondary education or earned an MBA. Strong quantitative skills are essential and the Chartered Financial Analyst (CFA) designation provided by the Association of Investment Management Research (AIMR) or the Canadian Investment Manager (CIM) designation from CSI are recommended.
Starting annual salaries for Investment Banking associates can be in the $50,000 to $75,000 range, plus bonuses. Senior Investment Bankers can earn salaries of $150,000 or more plus bonuses.
TradingTraders place orders in equity, fixed income and money market securities. They may also be licensed to trade in futures, options and foreign exchange. They may execute trades in the over-the-counter (OTC) markets, or become registered to trade on the major public exchanges.
CSC,CPH, Trading courses
The job calls for confidence, quick thinking and an ability to thrive in a high-pressure environment. Professional Traders must have a detailed understanding of exchange and firm rules, regulations and procedures.
Order traders are usually salaried employees who earn a salary in the range of $35,000 to $50,000. Registered Traders may earn salaries of between $50,000 and $75,000. They may also be eligible for bonuses that can double total compensation. Fixed income and foreign exchange traders' compensation is heavily based on bonuses tied to
trading profits.
Risk Management
The fundamental task of a Risk Manager is to monitor, identify, measure and then take steps to modify or mitigate risk. This requires a good understanding of quantitative techniques, financial and/or commodity markets and derivative products that are often used as risk management tools.
The salary range for risk managers varies depending on the position and years of experience. Entry-level risk management salaries are around $50,000. Senior risk managers can earn $150,000 or more, plus a bonus.
Research & Analysis
This job depends on a strong analytical mind and an ability to put clear thoughts into writing. A Research Analyst is usually responsible for studying a single industry sector and the companies within that sector that are of potential interest to a firm's institutional and retail clients. The goal is to produce objective and independent analysis of a company's financial fundamentals and use this information to make an expert recommendation on whether clients should buy, hold or sell shares.
Research Analysts are paid a fixed salary that may exceed $100,000, plus a substantial bonus that can match that, depending on performance of the individual and firm.
Portfolio ManagementThis individual is responsible for managing the portfolio of an investor or institution, such as a mutual fund or pension fund. Some specialize in equities, others in bonds, while some handle both. The Portfolio Manager's job is to develop the right combination of securities to maximize investor return for a given level of risk. The Portfolio Manager must have superior analytical and communication skills and excellent knowledge of markets and investment products.
CFA, MBA, CIM
Portfolio Managers are paid a fixed salary but may also earn substantial bonuses based on the performance of the assets under their management. An Associate Portfolio Manager can expect to earn in the $75,000 to $90,000 range with a bonus worth as much as half their salary. A full Portfolio Manager can expect to earn a salary in the
$100,000 to $150,000 range and earn a bonus that may match it.
Financial Planning & Wealth Management
Jobs can vary from working for a large securities firm advising clients on investments, to being an independent financial planner. They can be as specialized as selling insurance products or mutual funds, or as broad-reaching as working with a team of experts in law, taxation and estate planning to serve the complex needs of a high-net-worth investor. Require CSC, IFIC, CPH, PFP, CFP, etc.
Most Investment Advisors are on fixed salaries during their initial training. After that, compensation is typically based on commission or fees generated from client assets under administration. Most IAs can earn at least $100,000 per year after three to five years.
More experienced top performers can earn upwards of $500,000 per year. Compensation is closely tied to the ups and downs of economic and market conditions.
Course Requirements: CSCCanadian Securities Course Exam 1 The Canadian Investment Marketplace 15% The Economy 14% Features and Types of Fixed-Income Securities 12% Pricing and Trading of Fixed-Income Securities 11% Common and Preferred Shares 13% Equity Transactions 10% Derivatives 10% Financing and Listing Securities 7% Corporations and their Financial Statements 8% Exam 2 Fundamental and Technical Analysis 13% Company Analysis 12% Portfolio Analysis 25% Mutual Funds 15% Segregated Funds 5% Hedge Funds 9% Other Managed Products 6% Canadian Taxation 10% Working with the Client 5%
EXAM FORMAT Exams: 2; Exam Format: Paper Or Computer Based Exam; Length: 2 Hours; Question Format: Multiple Choice; Questions Per Exam: 100; Attempts Allowed Per Exam: 3* Passing Grade 60% (Per Exam); Assignments: None; ENROLMENT PERIOD: 1 year; Price: $960 for book & online access
Position, starting salary annual
Canadian Securities Course - CSC (1&2)
Investment Funds in - IFC
Conduct Practices Handbook - CPH
Canadian Insurance Course - CIC & Provincial LLQP
2/4 courses of Personal Financial Planning - PFP
PFP (4 courses) or PFPC (2 exams) completed
Certified Financial Planner CFP(CSC + PFPC/PFPC)
Personal Banking Officer in a bank, 36K
YES or IFC Yes or CSC
Sr. Personal Banking Officer in a bank, 45K
YES or IFC Yes or CSC YES
Financial Advisor in a bank, 50K
YES or IFC Yes or CSC YES Good to have
Financial Advisor, commission based
YES or IFC Yes or CSC YES (for trading) YES Good to have
Remarks Can sell stocks (with CPH), bonds, mutual funds, most types of investments
Can only sell mutual funds
Can sell all types of life, critical illness, disability insurance, investments in segregated funds
Est. Cost to do on own
$960 $325 $640 $500+$200 PFP: $2300 (IFC) to $2800 (CSC)
$595
COURSE REQUIREMENTS FOR FINANCIAL PLANNING JOBS IN CANADASource: CSI Global Education www.csi.ca
Life Insurance & Credit UnionsAsset Growth of Selected Canadian Financial Institutions ($ millions)
2003 2007 % growth since 2003
Chartered Banks 1,957,549 2,980,875 52.28
Life Insurance & Segregated Funds
336,340 426,606 25.95
Credit Unions 155,139 193,646 24.82
Financial Planning Pyramid
Art
Real estate, precious metals
Tax shelters, commodities, derivatives
Stock & mutual funds
Fixed income securities: bonds/GICs/fixed income mutual fund
Debt elimination: house/RRSP/emergency fund
Insurance – will - POA
Life Insurance: LLQPLife insurance products including term life, permanent life, universal life
Disability, accident and sickness insurance
Investment products; common shares, debt securities and mutual funds
Underwriting, pricing, claims; life insurance applications, policies, the agent role
Taxation including planning, RESPs, solving tax problems
RRSPs, RRIFs, LIFs, LRIFs, Annuities
Risk management and needs analysis
Common, contract and tort law
Professional standards, responsibilities, regulations, Assuris and E&O insurance
LLQP: Insurance Advisor role
CSI route: $500 for pre-qualifying course
Provincial Exam: $95
Companies: RBC Insurance, Primerica, World Financial Group, Manulife, Investors Group, London Life, etc.
Gain commission for life insurance policies, RRSP, RESP in segregated funds or work in salaried position
How to study for the Courses1. Enrol yourself, self study (4-8 months)
2. Enrol, hire a tutor (time, cost; maybe 2-4 months per course)
3. College course: Centennial, Humber, Seneca (cost, effort, opportunity cost: 1-2 years)
4. Join a commission based firm that will pay for your courses (IFC/CSC/LLQP)
5. Start working as teller/back office/call center in a firm that might pay for your course (18 month – 2 years)
6. Acess Employment Financial Connections; AND later internship through www.careerbridge.ca (for new immigrants)
7. Network, set up a study group, work your part-time job and complete the course
Investments Insurance Positive aspects
Investors Group YES-FOCUS YES No, only referral bonus
Well known, good reputation
Life (Great West Life)
YES-through seg. funds
YES-FOCUS No, only referral bonus
Well known, good reputation
Sunlife Financial YES YES-FOCUS No, only referral bonus
Well known, good reputation
Primerica YES-FOCUS YES No, only referral bonus
Well known, good reputation
Edward Jones YES-FOCUS YES No, only referral bonus
Not well known, excellent reputation in US
World Financial Group
YES YES Yes, build own team, get commission from sales of team
Excellent earning potential, good reputation
RBC Insurance YES-through Seg. Funds
YES-FOCUS No, only referral bonus
Well known, good reputation
COMPARISON OF COMMISSION BASED FINANCIAL ADVISOR FIRMS• Start your own business with a home office, no fixed time in the head office (flexible timing);• Build up your network, no leads are provided; must do cold calling• Commission income usually better than salaried position in the bank, after 2-3 years
ENTRY LEVEL BANKING JOBSPosition Competency Requirements
CSR/Teller/Cust. Support Communication, computer skills, cash management, ability to provide quality referrals to the team
Personal Banking Officer/Account Manager/Financial Services Rep 1 / Sr. PBO/ Sr. Account Manager/FSR 2
(MUST have Mutual Funds License)
thorough knowledge of customer life cycle needs & current economic & political events; thorough knowledge of the Bank's retail lending, investment, deposit & transaction services product features, benefits, & related pricing policies & procedures; expert knowledge of the Bank's sales & service technology platforms
Call Center Sales Representative Communication skills, product knowledge, customer focus, results oriented
Job responsibilities PBO/AM/FSR Sr. PBO FA
Assigned clients No Yes, credit focus
Yes, 500 high net worth (over $100,000)
Opens accounts, service issues
Yes Yes If needed
Visa, LOC, loan Yes Yes If needed
Mortgage – new & refinance
Yes Yes If needed
RESP/RSP/Saving Yes Yes Yes – focus – MF
Creditor Insurance (for bank credit only)
Yes Yes Yes, if needed
Portfolio over $50K No No Yes, GIC & MF
Estate Planning No No Yes
Job Searching Techniques
Workopolis, Monster
Networking
Career exploration exhibitions
Newspaper, craigslist, kijiiji
Walk around, visit sites
Volume of applications counts!
Points to Focus on in interviews
Teamwork, community, branch events, other departments
Provide excellent customer service
Compliance to bank & legal policy
Meet sales targets: weekly, monthly, quarterly, annual, in all products
SummaryKeep trying, do not let emotions overwhelm you: rejection (company & clients), knowledge (more courses), reputation, competition (other firms, other candidates), financial rewards (salary or commission), sacrifice, try again, sales goals, privacy issues, part-time options
Get resume & interview coaching through a qualified coach working in the industry
Pass courses, apply & keep applying
Try both avenues: salary & commission
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