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Breaking Down Financial Licenses and Certifications

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Structured Finance

Structured Finance

BREAKING DOWN

FINANCIAL LICENSES AND CERTIFICATIONS

Additional financial licenses and certifications may be required if you want to advance in a finance career. Here’s a quick overview of them so you can plan ahead!

Depending on your desired finance career pathway, you may need more than just a degree! Additional licenses and certifications may be worth pursuing if you plan on advancing down certain finance career pathways. These can help you increase your knowledge and demonstrate your value to future employers as well as clients. Employers may even require you to attain some of these certifications as ascend to more senior roles too.

There are various licenses and certifications available in the banking and finance industry, and choosing the right one depends on your specialisation and goals. Here’s a quick look at the most common ones.

FINANCIAL LICENSES

Financial licenses are awarded by a financial authority in order to show that you are licensed to sell and provide financial products and/or financial services. The application process for a financial license can differ depending on each financial authority. Most will require you take certain classes, pass an exam, and meet the minimum requirements set by the financial authority. Here are two licenses you could consider:

Registered Financial Planner (RFP) Offered by the Malaysian Financial Planning Council (MFPC), the RFP program has been approved by Bank Negara Malaysia in 2005 as the qualification to apply for a financial advisor’s license and/or a financial advisor’s representative license. These are key qualifications for the insurance industry specifically.

The program has also been approved by the Securities Commission Malaysia in November 2005 as one of the qualifications to apply for the investment advisors license and the capital markets services license. These qualifications are best suited for graduates seeking a career as an investment advisor, financial planner, corporate finance advisor and fund manager.

The program has seven study modules, and offers two methods of study – self-study with examinations and a physical course with lecturers and examinations. Candidates will be tested on both the academic and practitioner’s aspects of each module to ensure that RFP licensees have both theoretical and real world experience when doing financial planning.

Shariah Financial Planner (Shariah RFP) The MFPC also offers the Shariah RFP program as a practical professional programme for practitioners to equip themselves with Takaful and Islamic financial planning principles and knowledge.

This program is also recognised as an approved qualification for a financial advisor’s license. The Shariah RFP program offers both methods of study, similar to the general RFP program.

CERTIFICATIONS

Certifications are not administered by a government body, and can be obtained through either shortterm or long-term courses. You can consider them as a form of upskilling to prove that you have the knowledge for a specific line of work. Here are some of the more common certifications available for graduate jobseekers seeking a career in the financial industry.

Chartered Financial Analyst (CFA) The CFA is a graduate-level program of the CFA Institute in the US which is designed to develop competencies and professionalism required in the investment management and advisory services.

The CFA certification is widely recognised by investors, employers and regulators globally and in Malaysia. This qualification will allow you to boost your career prospects in the highly competitive financial industry.

Certified Financial Planner (CFP) The Financial Planning Association of Malaysia (FPAM) offers a professional certification program called the CFP which revolves around 4Es – dubbed as ‘Education, Examination, Experience and Ethics’, forming the cornerstones of the profession.

CFP professionals are valued in the industry as financial planners, quality trainers and financial intermediaries.

Islamic Financial Planner (IFP) FPAM also offers the IFP program for jobseekers looking to serve the retail segment of the Islamic financial products market. The program offers four modules and requires candidates to have a bachelor’s degree in any field.

CFP professionals are valued in the industry as financial planners, quality trainers and financial intermediaries.

Certificate Examination in Investment-Linked Life Insurance (CEILLI) The Malaysian Insurance Institute offers the CEILLI for candidates looking to pursue a career as a life insurance agent selling any investment-linked life insurance products.

In order to qualify for the examination, you will first have to be contracted as a life insurance agent. Then, upon passing the examination, you will have to register with the Life Insurance Association of Malaysia before conducting any insurancerelated business.

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