Working As A Financial Analyst

Working as a financial analyst
Whether its the Square Mile in London, the financial hub in dynamic Kuala Lumpur, Singapores thriving banking industry,
the fast-growing economy in the financial centre of Islamabad or the infamous Wall Street, many of the worlds most
developed cities boast impressive financial districts, where the banks and the investment houses many of them
restructured following the economic crisis are once more looking to the future.
For many years, jobs in these sectors had recognisable characters. The Gordon Gekkos and the City boys. Certainly not
accountants. But times have changed, and there are now plenty of opportunities for those who have accounting
qualifications to move into one of the most challenging and yet rewarding both professionally and remuneratively areas
of work. And that includes ACCAs. While it may take a while longer to land the really plum jobs, the openings are there if you
want them.
The role of a financial analyst can cover a range of areas. This can include investment management, where the majority
work as investment research analysts and portfolio managers, managing and analysing investments and investment
opportunities. It also encompasses working in investment consultancies, in roles such as pension fund investment
consultants or in investment banking where roles include analysts, traders, economists, and mergers and acquisitions and
business development experts. Financial analysts might also branch out into rating agencies, in roles such as credit analyst
or, for pension and endowment consultancies, positions such as fund manager and investment analyst.
Worldwide demand
Alex Hagger, manager of finance, commerce and industry at Badenoch & Clark, says: In banking, there is currently a
demand for financial analysts focusing on liquidity. In this position, candidates work across the whole banking group, gaining
exposure to different departments within the organisation.
The type of role available and degree of responsibility involved varies, depending on the candidates accountancy
qualification and experience.
Financial analysts are involved in strategically analysing the financial performance of the business. This can include
preparation of management reports, analysing the costs in the business as well as margins on pricing, and creating key
performance indicator (KPI) reports.
Competitor analysis also plays a role in a financial analysts work, as does looking at the feasibility of new product launches
for their organisation and reviewing the success of existing company initiatives, such as promotions.
More qualifications
Becoming a financial analyst is not the job for you if you never want to see the inside of an exam hall again. Extra
qualifications are deemed important, if not necessary. Organisations in the financial services sector find candidates who
have achieved or are working towards a Chartered Financial Analyst (CFA) qualification desirable, says Alex Hagger,
manager of finance, commerce and industry at Badenoch & Clark. Investment banks in particular, which operate a very
competitive recruitment process, regard CFA qualifications as important.
The CFA Institute, which represents chartered financial analysts, is the global, not-for-profit association of investment
professionals from over 100 countries worldwide and, indeed, this global aspect may be particularly relevant for ACCA
students. Sixty-eight per cent of its members are based in the Americas, 17% in Europe, the Middle East, and Africa and
15% in Asia Pacific.
Institute spokesman Steve Wellard says: The CFA Program equips individuals with the practical and fundamental
knowledge needed for a wide variety of career choices in the investment profession. Since it is one of the investment
professions most rigorous exams, many leading financial institutions employ CFA charter holders. The top employers of
charter holders include Bank of America Merrill Lynch, Goldman Sachs, Credit Suisse, Deutsche Bank, HSBC, Blackrock,
Barclays, JP Morgan Chase, UBS, Morgan Stanley and Citigroup.
Warning bells may sound on reading this list of high-profile banks because, if you turn the clock back a couple of years, they
were among the names being alleged by some as responsible for, or impacted by, the global financial crisis.
Banking sector
There is some unease within the industry towards employment conditions due to constant regulatory demands by
governments and long working hours. But according to the Chartered Financial Analyst Society of the UK (CFA UK), the
member society of charter holders based in the UK, there does appear to be some optimism within the investment
community that employment conditions will improve over the course of 2011, perhaps indicating that it believes current
concerns are being heard by the government and that the new regulatory framework in the UK may not be as onerous as
many initially feared.
In a recent survey, 42% of CFA UK members said they expected employment conditions to remain broadly the same, 37%
indicated they expected the situation to improve and only 16% anticipated it getting worse. Investment bankers were the
most pessimistic in this regard, with only 32% stating employment conditions would improve, while investment managers
and hedge fund managers in particular were more optimistic, with 38% and 43% respectively expecting improvement.
Getting the top jobs

So which skills do candidates need to have to put themselves in the best position to win the top jobs?
Candidates must have strong CVs relevant career experience at medium to large organisations sets the best candidates
apart from others in their field, says Alex Hagger, manager of finance commerce and industry at Badenoch & Clark. We
have seen the role of accountants more broadly change from a back-office, number-crunching finance steward to a
commercial decision maker. Candidates must, therefore, be able to display a broad range of skills. These include excellent
communication skills, palpable interpersonal skills and commercial acumen.
Financial analysts are often called upon to present information on the performance of the business to senior management.
For this, presentation skills and advanced IT abilities are essential.
The global financial crisis has increased competition for top jobs in the investment sector, as well as scrutiny of practising
investment professionals, adds CFA Institute spokesman Steve Wellard. It is, therefore, essential that candidates
demonstrate strong technical knowledge and skills alongside a firm commitment to ethics and the highest standards of
professional conduct.
Another consideration, if the work itself tempts you, is the highly pressured environment in which you will be expected to
perform. It doesnt suit everyone. We would advise candidates against pursuing a career as a financial analyst if they favour
jobs with standard working hours, says Hagger. Since most work is project based, hours can be inconsistent with periods of
overtime when particular deals or acquisitions take place. Hours can be particularly sporadic in the banking sector.
However, he adds: The work financial analysts are involved in is overwhelmingly engaging and commercially interesting,
making it a very rewarding career choice.
First published in ACCA's Student Accountant Magazine

Working As A Financial Analyst

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Getting the top jobs

First published in ACCA's Student Accountant Magazine

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