Investment bank qualifications vary depending on the role, with undergraduate and graduate degrees in finance and economics often required. Industry certifications, such as the Chartered Financial Analyst (CFA), are also common. Postgraduate degrees are usually required for investment banking roles, with further education and certifications recommended. Licenses may also be required, such as the Series 7 and Series 63 licenses in the US. Some qualifications, such as the CFA and Certified Financial Planner (CFP), are recognized globally, while others are only relevant in certain countries.
Investment bank qualifications may differ according to certain industry roles. These roles include various brokerage positions, analysts, mergers and acquisitions (M&A), sales and trading, and portfolio management. The types of qualifications required for the roles mentioned, as well as others, include undergraduate and graduate degrees in various business disciplines such as finance and economics. In addition to the diplomas mentioned, other certifications and licenses in the sector are often required to be hired. An example of an industry certification would be the Chartered Financial Analyst (CFA) certificate.
To become an investment banker, a postgraduate degree is required in most cases. The following subjects are usually preferred: finance, economics, mathematics, engineering and marketing. In addition to the subjects mentioned, further education and industry certifications are recommended. This may be necessary to get hired for many types of positions. Other skills are also considered, such as excellent communication and interpersonal skills.
Typically, investment banker qualifications required to work in M&A positions include undergraduate and graduate business degrees such as a Master of Business Administration (MBA). Additionally, a CFA designation is highly preferred for most M&A engagements. Generally, investment banker qualifications for portfolio managers include a postgraduate degree in one of the disciplines mentioned above. For roles such as underwriting securities, required qualifications include MBAs and the CFA designation. Additionally, after earning an undergraduate degree, a candidate may have a chance at a career in investment banking starting as a research analyst or assistant.
There are several qualifications of investment bankers for the role of a seller and trader. For example, a sales trader is usually required to have an undergraduate degree in a discipline such as finance. Most of the time, he or she is given tasks that include recommending investments to clients; therefore, the sales professional needs an industry license. This requirement also depends on the country in which he resides. For example, in the US, licenses required include what is known as a Series 63 Uniform Title License (USL) and Series 7 Title General Representative License (GSRR).
Securities brokers need an undergraduate degree in the subjects mentioned above. Also, they may be needed for further testing. For example, in the US, a securities broker needs to pass a background check and pass federal and state exams to obtain relevant licenses. This includes the GSRR Series 7 license administered by a body called the Financial Sector Regulatory Authority (FINRA). Additionally, some companies require bond brokers to obtain professional qualifications, such as a Certified Financial Planner (CFP).
Additionally, some industry certifications, such as the CFA and CFP designations, are obtainable in many countries and are recognized around the world. Others, however, are only relevant in the country where they were issued. Thus, some investment banking qualifications may vary from country to country. Some requirements tend to be universal, such as undergraduate and graduate requirements, such as those mentioned above.
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