A review of financial sector positions in Canada with course & competency requirements

1. FINDING EMPLOYMENT IN THE FINANCIAL SECTOR IN CANADA Aizad Ahmad MBA, MSc, CSC, CPH, PFPc, LLQP Financial Advisor & Career Coach

2. Agenda My 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

3. My Story Oct. 2004: Landed in Canada Feb. 2005: Edward Jones Investment Advisor trainee: CSC, CPH, LLQP Dec. 2005: RBC Insurance: Insurance & Investment Advisor Jan. 2007: ScotiabankPBO (Level 4), completed PFPc in 2008 June 2009: Financial Advisor (level 6)

4. Career Paths in the Banking Sector Compliance Financial Planning and Wealth Management Investment Banking Portfolio Management Research & Analysis Risk ManagementTrading

5. Compliance Employees 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

6. Investment Banking Here, 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.

7. Trading Traders 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.

8. 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.

9. 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.

10. Portfolio Management This 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.

11. 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.

12. Course Requirements: CSC Canadian 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

13. COURSE REQUIREMENTS FOR FINANCIAL PLANNING JOBS IN CANADA Source: CSI Global Education www.csi.ca

14. Life Insurance & Credit Unions

15. Financial Planning Pyramid

16. Life Insurance: LLQP Life 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

17. 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

18. How to study for the Courses 1. 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

20. Build up your network, no leads are provided; must do cold calling

22. Job responsibilities

23. Job Searching Techniques Workopolis, Monster Networking Linkedin Career exploration exhibitions Newspaper, craigslist, kijiiji Walk around, visit sites Volume of applications counts!

24. 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

25. Summary Keep 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