Statement of Purpose
The purpose of this report is to inform me, and those students following a similar career path, with an in-depth study of our Professional Community.
Statement of the Problem
Although students are well prepared academically in their chosen field of Accountancy, they are unaware of the Professional Community.
Limitations
These limitations will only deal with the area of financial planning:
- Three major firms that deal with financial planning will be analyzed along with the key elements of each.
- A financial planners job criteria will be discussed
- An explanation of what an “in house” training program is and which of the three firms offers them.
- The entry level salaries of financial planners will be included
- Three Professional associations will be portrayed and discussed
- Three professional journals concerning financial planning will be described.
- Three figureheads of the financial planning world will be introduced
- An interview will be used to find out more about financial planning.
- The different certifications and accreditations a financial planner is able to obtain will be discussed
- Information about conferences in and around Montréal will be discussed.
Delimitations
The following areas of Finance will not be discussed: commercial banking, corporate finance, investment banking and money management.
Methodology
Information for this report will be obtained from websites, academic journals, encyclopaedias, business magazines, text books, search engines, and an interview.
REPORT ORGANIZATION
To better understand what the financial planning field is made up of, criteria for jobs and important people and conferences, a detailed explanation is outlined below. This is done so to give the Professional Community a more in depth understanding of their surroundings.
- Introduction to Professional Community
Firms:
- AGF Canada. This company is a well established Canadian company that has a core value that is very important. Their vision is to be able to “pool the funds of Canadian investors to allow them greater access [to international markets]”. This was achieved many times in the companies 44 year history. They were the first to give Canadians the opportunity to invest their money in the United States through the New York Stock Exchange. By making these various international trades, AGF made a name for themselves as top notch financial investors and planners. This name is still very well known today in the financial world and because of their hard work to keep their name in good standing, AGF does what it has to in order to satisfy its clientele. By remaining true to its Canadian roots, AGF has helped build great wealth for Canadians and gain the trust of these investors. For this reason, a company that was developed in Canada and is still a very important part of the financial community of Canada would be a major consideration when looking for a place of employment in this field.
- AIC Canada: A young company in Canada that deals with mutual funds and financial planning of clients assets. This company started in 1985, and is presently among the best mutual fund companies of Canada. It has earned many awards for customer service, and many of its mutual funds are well known among investors for their growth. Many benefits that are given to employees include competitive salaries, investment benefits and insurance coverage. Employees are able to think freely for themselves and solve their own problems, with minimal input from management. This is good since employees are able to grow intellectually and gain more hands on experience. This company is geared to making their employees feel recognized. Many awards are given out for different traits that AIC feels are important to their survival and success. This company is both financial successful and takes good care of its employees. They have 2 characteristics that are important for many individuals who are looking for employment in this field. AIC will probably be considered by many when it comes to applying for a job.
- Kilimanjaro Group: This is a group of brothers who started a financial investment and planning office 25 years ago. They first started to help people invest their money more efficiently in various ventures. They would help people make wiser decisions of where to put their money. Now, they have their own ventures that can be invested into. The group has a team of employees that are responsible for finding new opportunities for investment (i.e. stocks, mutual funds, franchises) and make decisions and long term calculations of expected growth. In some cases, the group actually purchases the venture, sets it up, runs it for a period of time and then sells it. They finance these ventures by investments from individuals and some of their own. If a certain venture is not worth going into, Kilimanjaro Group will not pursue it, however if it is a good one, they will advise their clients of this. One advantage for the client is that if they invest in a franchise for example, if the business fails, they are not the only ones who lose. Kilimanjaro Group also invests in the venture, meaning that they all have a limited liability and only lose what they put in. finding new and profitable investment takes experience and dedication by employees. They have to assess many independent factors that might make a business fail before making an educated assumption. If an individual enjoys challenges and a good payoff if a venture is extremely profitable, and making contacts with potential investors, this is a very good company to look into.
Job Criteria:
A financial planner’s most important attribute has to be their people skills. Since working with individuals is the bulk of their job, begin able to communicate well with customers and coworkers are a must. Also, having a good understanding of the business world, and having the Certified Financial Planner (CFP) certificate helps to build a bond of trust with clientele. A good understanding of accounting principals will also help facilitate the job of a financial planner. Keeping close ties with fellow employees, management and clients calls for good organizational skills. This must be done so to avoid any mishaps due to being disorganized.
In-house Training Program:
At Kilimanjaro Group, candidates who are hired are not necessarily put through an in-house training program that teacher them new things except for taking a Canadian Securities Course and the Conduct and Practices Handbook Course which is offered by Canadian Securities Institute. These courses are taken so that individuals are licensed to sell securities. They are hired upon a basis of prerequisites. Usually, a candidate has to have a master’s in Business Administration or a professional degree in accounting. The Group just teaches employees how to do paperwork and conduct some meetings as per their own specific guidelines.
Entry Level Salary:
The entry level salary for an individual entering the job market with a bachelor’s degree is $34,700 Canadian. The more a person gains experience and knowledge in the field, the more they will get paid.
Professional Association:
One association here in Montréal is the “Montreal Society of Financial Analysts”. This association’s main goal is to “provide members with a forum to exchange ideas and to obtain valuable and timely information”. They also are in business to help maintain a level of quality and rules for financial analysts and their practices. This association also helps students prepare for their CFA exam.
Another is the Association for Investment Management and Research. AIMR’s main goal is to “serve its members and investors as a global leader in educating and examining investment managers and analysts and sustaining high standards of professional conduct”. They do this by setting standards of practice, ethics and professional conduct. This internationally recognized association’s rules are followed by many.
The International Federation of Technical Analysts (IFTA) is a group of analysts from over the world. Their goal is to “encouraging the use of technical analysis, fostering growth and professionalism of its members and enhancing the exchange of information about technical analysis in the international investment community”. This is an association that shares information freely between members so to better the quality of the work done by each.
Another association is the Association for Financial Professionals (AFPonline.org). Their goal is to provide information to the financial sector so to increase their knowledge about different topics. They believe that by working together with the over 14,000 members, they will be able to better growth of each individual and as a professional community as a whole.
Professional Journals:
Some Professional Journals include the Harvard Business Review, Journal of Financial and Strategic Decision, Treasury and Risk Management Magazine, CFO Magazine and the Journal of Investment Management.
Movers and Shakers
Some movers and shakers in the industry are Jim Kaitz, Chief Executive Officer and President of The Association for Financial Professionals. Also, Myron S. Scholes, a 1997 Nobel Laureate in Economics. Sallie Krawcheck, is the new CEO of Citigroup and “one of the most powerful women in the corporate world” (TIME: 2002 Global Influentials).
Certifications:
In the field of Financial Planning, one can earn a number of accreditations. These can include a Chartered Financial Analyst (CFA), Financial Analyst, Financial Consultant, Investment Analyst/ Advisor, Mutual Fund Analyst, Advanced Financial Planner, and Portfolio Manager.
Conferences:
Some conferences that have been held in and around Montréal are the Desjardins Securities Conference (June 15-17, 2003) and the BioFinance 2003 Conference that was held in Toronto (May 13-15, 2003). Lastly, on November 27th, 2003, there will be a conference on the 2004 Economic Forecast in Montreal at University Club.
- Survey: Results and Interpretation of Results
The survey was given to 10 students in various Business Communications classes (COMM 212). They were asked to answer the 5 questions of the survey to the best of their ability and not to consult other classmates so to keep a level of confidentiality. Here are the results:
Question 1:
What program you presently studying at the John Molson School of Business?
The majority of respondents were in the field of finance and accountancy (Table of Illustrations, Figure 1). Therefore, because of the questions in the survey, only 4 out of the 10 respondents could answer question 2 through 5.
Question 2:
If you are in Finance, how often do you read the finance/business section in the newspapers? If your major is not Finance, thank you for your time!
All respondents in the field of finance read the finance/business section occasionally.
Question 3:
Do you invest in stocks, bonds, or funds?
Half the respondents did invest in stocks, bonds or funds, and half did not. One respondent added that he did not, but his parents were avid investors.
Question 4:
Rank from 1-5 (1 being the most desired, and 5 being the least desired), your desired job in the Finance world?
The answers to this question were either a Chartered Financial Analyst (CFA), or a Financial Planner. This could be because the Professional Community is unaware of the other job available in the finance world and are just choosing from those that they are aware of, or have some idea as to what a CFA or Financial Planner does.
Question 5:
Answers ranged from respondents liking the stock market, dealing with figures and people at the same time, and they did not want to do accounting, so they chose finance.
CONCLUSION
In conclusion, this Formal Business Report was made to improve the knowledge of the members of the Finance Professional Community. This research project gave one a better view of the operations of their Professional Community. By opening the gates to the inner workings of the field, ones gets a better perspective of its internal elements. When a member of the Professional Community well informed about their surroundings, they are more ready to answer any questions about their field that may come up.
RECOMMENDATIONS
A good way to keep in good touch with one’s Professional Community is to continually update the information available to the individual. By updating the ways a firm works, the new requirements for jobs, the new in-house training program methods, the entry level salaries, changes in professional associations, new and improved professional journals, new movers and shakers in the industry, certifications that can be earned, and finally up and coming conferences, one stays in touch with what is going on in the field of finance.
