Cfa Analysis of Equity Investments Valuation Ocr

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					Financial Services

The Sector Skills Council for the Finance industry is Financial Services Skills Council

Contents

1. Introduction to Financial Services
   1.1 Sector information - a brief introduction to the sector at UK level

The financial services sector employs more than 1.2 million1 people. It is the UK’s most global
industry and encompasses a wide range of services and products. The majority of people within the
UK use these products and services to manage their own financial situation. For example, if you
have a bank or building society account, hold a mortgage, an insurance policy, a pension plan, use
a credit card, or have a savings account, then you are interacting with the industry. Financial
services also support large businesses and Government to raise money and increase the stability of
the UK economy. In short, the financial services industry is about saving, borrowing and investing
funds, and managing the transmission of these funds.

In financial services there are employers of varying sizes and who have a number of functions. To
help you understand the industry further we suggest you look at the brief description of what makes
up financial services:

Insurance
The insurance market covers a huge variety of risks, from cars and houses to ships, planes and
satellites. Those working in the world’s trouble spots need kidnap and ransom cover, oil pipelines
need terrorism cover and music promoters insure against the non appearance of the leading act.
Insurance is increasingly necessary; events ranging from the school sports day to the Olympic
Games could not take place without it. It has a global reach and not only underpins our own
individual security, but also enables big business to operate more freely. Events such as floods,
theft and fire can affect an individual too, and anyone with something that is of value to them, such
as jewellery, a laptop or the general contents of their house may also require insurance.

Individuals may also want to insure their health so that if they become ill, or die, there is a financial
safety net for themselves of their family, along with retirement planning for when they will get to an
age when they will no longer be working.

Banking
Banking is an important sector of UK financial services. Without banks, it would be difficult for
individuals and businesses to manage their money, access loans, buy property, exchange
currencies and many other activities that we use the banking system for. It is a large sector and is
best understood organised when looked at in three core categories: Retail, Corporate and
Wholesale banking. Some banks do however operate across all three categories!

Retail banking
The primary activities of retail banks and building societies are offering access to credit, managing
transactions and collecting deposits. These organisations operate on every high street, most have
an online presence and offer telephone banking services too. They offer services and products to
the general population to enable people to manage their daily finances, including:
     Accounts (e.g., current and saving accounts)
     Bancassurance (insurance products such Life Cover)
     Currency exchange
      Investment products (e.g. Pensions and Independent Savings Accounts)
      Loans (e.g. mortgages and personal)

There are Area and / or Regional offices support and direct the work of the high street branches.
Head office then support the work of the regional offices in addition to managing company wide
activities such as accounting functions, risk management, compliance, reporting, legal, IT, HR and
training.

Corporate Banking
Banks also operate services for business. Businesses sometimes require different types of
products and services to those of the general population require. This might relate to how funds are
accessed, bespoke banking services arranged to manage their income and expenditure, which
could be on a small or large scale and could be in various currencies. Many retail banks will offer
business banking services. Corporate banking services can be operated through retail branches,
but with staff dedicated to the business banking function.

Wholesale Banking
Wholesale financial services are distinguished from the retail industry partly by the type of activity
and volume of transactions undertaken, but mostly by the nature of the counterparties involved.
Wholesale financial services bring together professional counterparties: clients are large
companies, banks or governments and service providers include securities and derivatives firms,
investment banks and insurers, as well as market infrastructure providers such as exchanges.
Whatever career path in banking you choose, you will be in a sector that is forever changing, is
innovative and one which, given your skills and dedication, will open up opportunities beyond your
initial expectations.

Investments
Working in the investment sector is about managing and growing the wealth of individuals and
organisations. Although investment clients may be different - an individual with a small amount of
money to invest, a person who has millions of pounds or a company with a large pension fund, the
aim is the same, to look after the clients money, and to create more wealth and income. One of the
most important aspects of the investment sector is the management of risk and reward. In
investments, risk refers to the possibility of the client losing some or all of their money that they
have invested, or of their initial investment not growing at all in value. Generally, the products that
are higher in risk potentially provide a higher financial gain. Those that are lower in risk tend to
have a smaller gain. It is really important that the investment professional working with the client is
able to ascertain the client’s attitude to risk. The investment sector is a rapidly evolving industry,
constantly looking at the creation of new strategies and products. The products have to provide the
financial growth that the client wants; they also sometimes have to fit in with the beliefs and values
that the client has too. The range of funds is therefore growing, to include those that are ethical and
meet the requirements of people’s religious beliefs. Whatever career path in investments you
choose, you will be in a sector that is creative, innovative and entrepreneurial, and one which, given
your skills and dedication, will open up opportunities beyond your initial expectations.

Credit Leasing and Finance
Credit, leasing and finance refers to organisations that offer individuals and companies credit to
purchase or lease products. The organisations that are involved in credit, leasing and finance
include:
     banks and building societies (including their subsidiaries)
     finance arms of large retailers and manufacturers
     independent firms
The type of finance provided include finance leasing, operating leasing, hire purchase, conditional
sale, personal contract purchase plans, personal lease plans, secured and unsecured personal
loans, credit cards and store card facilities. Individuals and business need credit, leasing and
finance services when they haven’t got the money to buy the products that they need. Businesses
may choose to lease products, such as machinery, for a short time instead of purchasing the item.
This enables them access to the product in the short term without having to invest in one
permanently. There tends to be three types of credit, leasing and finance categories:

Consumer
Consumer credit enables individuals to match their income and expenses more closely in order to
serve their current needs. People may take out a credit card, a personal loan or a store card.

Motor Finance
Finance and leasing for cars (new and used) and commercial vehicles is a large section of the
industry. Many car sales companies offer customers the opportunity to take out a car loan to help
pay for their purchase. They also sometimes offer the customer the opportunity to lease the
vehicle.

Trade
Trade finance provides funding for companies to pay suppliers. Companies may access trade
finance services alongside bank overdrafts and loans.

Whatever career path you choose, you will be in a sector that is forever changing, is innovative and
one which, given your skills and dedication, will open up opportunities beyond your initial
expectations.

Financial Advice
Are you looking for a career where you can support people in understanding and managing their
finances? If you are a people person, with excellent people and communication skills, then a career
in the Financial Advice sector may be for you. Everybody needs financial advice at some point in
their lifetime. It’s not just for those who have a high income or lots of savings; it’s about helping
anyone make the most of the money they have. A career in financial advice is about working with
people to plan their financial goals, based on their current situation and looking at the best ways
they can achieve their financial objectives. It could be about helping someone to choose a
mortgage, invest their savings or plan for their retirement.

You can find out more about the career options in financial services on our careers information
website, Directions.

2. Financial Services

2.1 A brief description of what the sector covers at England level
Financial services is a large employer in England, employing approximately 931,600 people.
Banking, financial advice, insurance, investment management and credit, leasing and finance
feature in order or prevalence of employment in England.

2.2 Information on careers available and new emerging jobs, transferability of skills career
paths and opportunities for progression
       a) Careers Currently Available
       Within financial services, there are many careers available across the sector.

      In insurance, you will find a team of specialists working together. These teams could include
      professionals from underwriting, broking, customer services, sales, risk management,
      compliance, training, actuarial and administrative roles. Each professional supports the other,
      ensuring that the risk is managed well and that the customers – whether it be an individual, a
      business, or the government – feel financially secure. It’s not just arranging and negotiating
      the insurance that is important though. Risk managers help organisations understand and
      address all the risk facing their business, including those that can be insured and those that
      can’t. Loss adjusting and claims management specialists have to manage the situation if the
      unforeseen event does indeed happen and a loss occurs. They have to use their knowledge
      and expertise not only to assess the validity of the insurance policy, but also to liaise with a
      wide range of other people – fire brigade, police, lawyers and doctors to gather evidence and
support the customer through the process. Please see the insurance building on the
Directions High Street for more information on career options and to view the job profiles.

In investments, there are some roles in investments that involve working with clients, and
others behind the scenes.
     Those in asset management (sometimes called fund management) and wealth
       management advise clients about which decisions to make regarding the investment
       of money, or perhaps making the decision on their behalf.
     People in investment analysis conduct research which supports the investment
       decision of asset managers.
     Working in product development, product management involves developing new
       investment products, managing distribution of within the market place
     Relationship management experts developing client interest in the product.
     Trading professionals are advised by those in asset management and private banking
       to execute investment deals that their clients have decided upon.
     People working in stockbroking generally advise clients on buying and selling stocks
       and shares for investment purposes.

Without operations professionals, the trades placed would not be finalised. There is a
breadth of opportunities within operations and services including performance measurement,
settlements, clearing, investment support, fund administration, pricing and data management,
valuations, fund accounting, corporate actions, reporting and reconciliations.

These experts are responsible for
    Ensuring the buying and selling of shares is smoothly transacted
    Valuing investment funds and client portfolios, and
    Safeguarding the assets of clients.

Some roles such as risk management and compliance are also found in other sectors of
financial services.       It’s important that operations professionals have excellent
communications skills, are confident working with others and are accurate in the work that
they do. To get an insight into investment operation roles, look at the video on the
homepage from the Scottish Investment Operations. As with all financial services
organisations, there are a number of professions who may not be financial specialists, but
have a vital role in the company. There are opportunities in human resources, training, IT,
project management, legal, marketing and administration. All these people contribute
towards the work of an investment firm.

In banking, you will find diverse career opportunities across the retail, corporate and
wholesale markets. In retail banking and building societies, there are a range of roles which
involve working in a high street branch such as customer services, customer advice, financial
advice, foreign exchange and branch management. There are roles too in operations and
management however which are generally based in regional, area or head offices, such as
policy and standards, fraud, e-commerce, business development, settlements and risk
management. In corporate banking, many functions operate out of retail branches or from
area/regional offices. Roles in corporate advice, relationship management, small business
management and corporate management are just some of those available. The career
options in wholesale banking are generally grouped under the three sections of Mergers and
Acquisitions, Research, Sales and Trading, and Corporate Finance. Most of these tend to be
graduate calibre roles, and some include Credit Analysis, Flow and Sales Trading,
Proprietary Trading, Structuring, Economic Analysis and Corporate Financing. Please see
the banking building on the Directions High Street for more information on career options
and to view the job profiles.

In credit, leasing and finance, there are a variety of the roles include work credit
management, debt recovery management, and fraud, billing, insolvency and credit risk.
Please see the credit, leasing and finance building on the Directions High Street for more
information on career options and to view the job profiles.

In financial advice, you will find people working in organisations of all sizes. Lots of people
run their own financial advice business or are employed by firms offering financial advice.
Whichever you choose, your work can be based in a central office or can span a large
geographical area, sometimes travelling to client’s homes or workplace. You may also work
with other financial advice professionals including people who work in customer services and
sales who often have the most important first contact with the client, booking appointments
and following up enquiries. Those who work in financial or mortgage advice, are in the client
facing arena, implementing their communication and negotiation skills, presenting clients with
solutions to their financial needs and those in debt management support people in resolving
more complex financial problems.           Those working in new and existing business
administration and paraplanning play an important role in supporting the advice process.
Compliance practitioners ensure the statutory regulations are understood by all
professionals, are adhered to and processes are in place to ensure that the business
remains compliant with regulatory and legal requirements. Experienced financial advice
professionals may work in the business development area, generating new clients. Please
see the financial advice building on the Directions High Street for more information on
career options and to view the job profiles.

b) New and emerging roles
Financial services is a sector that is undergoing constant change; diversification of services
and products in order to offer retail and corporate customers varied and sophisticated
financial solutions means that job roles are also undergoing ongoing change. There appears
to be a trend in for an increased need for more compliance, risk management and
corporate governance professionals. This is in the response to an increased need for a
review of regulation policies and practices. There is also an indication that there is going to
be increased focus on customer service, both to retail and corporate customers. This may
result in a demand for skilled people in the areas of customer services and relationship
management. There is also a growth in Islamic banking and finance and this will lead to an
increased need of people with knowledge and skills needed to work in this specialized area.
Financial crime is also an area where the industry is seeing higher demand placed upon
strategies and mechanism to deal sophistically with fraud and as a result there could be a
growth in roles in this area. Overall, there seems to be a trend that jobs will increasingly need
people with higher level skills; the increase in the use of technology may impact upon those
roles which are currently at the lower skill level.

c) Transferability of skills within the sector
Employers will each have specific skill sets that they will look for from employees, although
there tends to be a core set of skills that all employers in the sector look for. This enables
transferability of skills within the sector, although do remember that there are some specific
roles that require niche skills (please look at the A-Z list of profiles on the Directions
website for this information). The core skills that all employers in the sector tend to require
from employers include:

   customer services
   numeracy
   business communication
   IT
   written communication
   product knowledge
   industry knowledge

d) Career paths and opportunities for progression
As with most career choices, there are a range of progression routes, and this very much
varies depending in financial services on the company that you work for. Skills are important
      when looking to progress; employers will require employees to be able to demonstrate the
      required skills needed for their next step in their career. Progression opportunities within
      financial services are available; if an employee demonstrates enthusiasm, commitment and
      competence, progression is quite often possible. For many financial services roles,
      professional qualifications are important. These are gained whilst in a role and provide the
      technical knowledge required to undertake the tasks of a job. Sometimes it is necessary to
      have a specific qualification before progression is possible. The opportunities available to an
      individual once in the sector are limited only by their personal choice. You can find out more
      about progression routes for each profession by looking on the individual job profiles. You
      can find an A-Z list of profiles on the Directions website.

2.3 Information on pay scales in the sector
In England, the average pay scale for financial services employees is estimated at £47,307.002 per
annum. This figure is biased however by the London job market, which has a higher salary level.
The sector does not operate sector wide salary scales. Employers often pay a ‘basic’ salary and
will then quite often offer a ‘package’ which may include an annual performance related bonus,
pension, and private health care insurance. Please look on the individual job profiles for indication
of salaries for each profession. It would also be useful to look at the salary surveys that recruitment
agencies specialising in financial services compile on a yearly basis. Please visit the salary page
on the Directions website to get an overview of salaries in financial services.

2.4 Information on entry requirements, application processes (e.g. Apprenticeships)
There is a wide range of career opportunities within financial services, and therefore the entry
requirements and application procedures for each of the options differ. We would recommend that
you look on the Directions website at each job profile to look at the qualification requirements for
each career option. There tends to be three types of entry to careers in financial services:

   1) Entry with GCSEs, NVQ 2, Higher BAF Diploma or equivalent
      Entry with these qualifications would tend to lead into junior roles in accounting, book-
      keeping, payroll, credit control and credit management. These roles tend to require GCSEs,
      Standard Grades or equivalent in English and Maths as well as some good IT skills.

   2) Entry with A levels, NVQ3, Advanced BAF Diploma or equivalent
      Entry with these qualifications would enable entry to a career in administrative, sales, and
      customer services roles. It is likely that these roles will have integral training and an
      opportunity to then take professional qualifications. These roles could be within any of the
      financial services subsectors, but most likely to be found in retail banks or building societies,
      retail insurance, financial advice or credit leasing and finance. There are however some
      opportunities to enter formal training schemes with some companies for people with level
      three qualifications. These companies tend to be banks, building societies and financial
      advice firms. There may also be some formal schemes available in wholesale and
      investment banks and investment firms; however these firms will tend to require very good
      grades and can be competitive.

   3) Entry with foundation degree, degree or equivalent
      Entry with these qualifications would lead to professional and technical roles. It is highly likely
      that these roles will have formal training that will lead to professional qualifications. The
      employer will often require that the professional qualifications are gained within a certain
      timeframe. The companies that offer these schemes tend to be banks, investment firms,
      insurance companies and financial advice firms. Some of the schemes can be very
      competitive and often require good grades.

The application process for careers in the sector varies, but many will require a direct application to
the employer or via a recruitment agency. More information on job hunting and using recruitment
agencies can be found on the Directions website.

      Apprenticeships
       Apprenticeships and Advanced Apprenticeships are available for Providing Financial
       Services and Advising on Financial Products. More information on the content and entry
       requirements to Apprenticeships is available on the FSSC website. Apprenticeships are
       available for people already in employment although some companies may also advertise for
       an ‘apprentice’. These are advertised on the National Apprenticeship Service website.

       A Level or Equivalent Leaver Training Scheme
       Some companies offer formal training schemes for people who have good A Level grades or
       equivalent qualifications. These schemes often last two years and the candidate will
       experience a number of different departments within the company and will undertake
       professional qualifications as part of their training. The application procedures for these are
       through direct application to the company. More information on job hunting can be found on
       the Directions website.

       Graduate Training Schemes
       Some companies offer formal training schemes for people who have achieved a degree with
       a good classification – most employers will requires a 2.1, although some employers will
       accept a 2.2. These schemes often last two years and the candidate will experience a
       number of different departments within the company and will undertake professional
       qualifications as part of their training. The application procedures for these are through direct
       application to the company. More information on job hunting can be found on the
       Directions website.

2.5 Qualifications
Financial services employers place value on professional qualifications and look for employees that
are committed to achieving relevant exams. For some roles, employers will look for potential
employees to have relevant qualifications. Most employers would not expect new entrants to be in
possession of relevant professional qualifications but would require them to have good maths and
English skills, alongside the minimum academic qualification required for the role (for example being
an actuary in an insurance firm would require a degree for entry; working in customer services in a
bank may require GCSEs or equivalent). The employer would, however, expect new entrants to be
committed to achieving relevant professional qualifications once they are in post. This
demonstrates dedication to the job and a keenness to progress. Professional qualifications are job
specific. They build on top of general and academic qualifications (such as A Levels, degrees,
GCSEs, 14-19 Diplomas etc) and give the learner the exact technical knowledge required to
undertake the tasks of a role. Professional qualifications fall into three categories:

Appropriate Exams
For some roles, specific qualifications are needed in order to undertake the activities of the job
unsupervised. For example, to provide mortgage advice, the adviser must have an Appropriate
Exam. The FSA decides which job activities are regulated and therefore which ones must have an
Appropriate Exam attached to them. It is generally jobs that involve advising the general population
on financial matters that are regulated. It's important to remember that the employer will not
necessarily expect you to have this qualification if you are a new entrant but they will expect that
you successfully obtain it whilst in post.

The FSA has proposed to raise the current qualification requirement for certain regulated advice
roles from level 3 to 4. Individuals who are currently studying for a level 4 qualification are advised
to continue studying and can fill any gaps from the new appropriate exam standards by continuing
professional development (CPD). New qualifications will be available that meet the new FSA
standards by August 2010. The expectation candidates must have achieved a qualification which
meets the RDR standard by the end of 2012 in order to operate within an RDR-affected role. For
more information please see RDR Exams Standard Project section of the FSSC website.

Recommended Exams
There are certain job activities that do not require the person to have a specific qualification, but the
FSA recommends that the employee considers working towards a professional qualification. These
activities are generally those that involve advising other businesses on financial matters. Again, the
employer will not necessarily expect you to have this qualification if you are a new entrant but they
may expect that you successfully obtain it whilst in post.

Other professional qualifications
Aside from Appropriate and recommended exams, there are many other qualifications that are
offered by professional bodies that employers would deem useful for the employee to achieve whilst
they are in work. Please see the list of qualifications section of the FSSC website to view the
range of qualifications on offer.

2.6 Data on employment and labour market trends and forecasts
In England, there are 931,600 people employed in financial services labour market. This is not
evenly spread across England however and we would recommend you view the breakdown across
the regions. England, owing to the influence of a number of financial services clusters, has slightly
more managers, professionals and technical staff in relative terms, as well as slightly fewer
secretarial and administrative, or sales and customer service, staff. All types of people work in the
sector and this can be broken down as below:

Gender breakdown
On first inspection, the industry appears quite hospitable to women; 53 per cent of the financial
services workforce are women, a ratio significantly larger than that across all industries. Almost
three quarters of all women in the industry are in administrative, sales or customer service roles. By
contrast, less that a third of all managers and proprietors, and barely one in every eight
professionals and technical staff, are women. The pattern appears to be that women tend to take
support roles in the industry, while men dominate those positions with a more technical content.
There are more women than men that work in financial services in England.

                                             Male                                          Female
 England                                     450,467                                       481,104

Age range of workforce
The industry has a reputation for being dominated by older people. Sales and customer service
staff are typically younger, as are employees in elementary roles, and administrative staff are, on
average, marginally younger than the rest of the workforce. Managers and senior managers are the
oldest segment of the workforce. Age, to some extent, is only an implication of the requirements for
such roles: the extensive experience, range of relationships and holistic view of the industry
required of managers and executives usually take a great deal of time to develop. There are more
employees in the age range of 25 years to 44 years in England. The bracket for this age group is
wider than the others and this does explain the increased number of employees. Another factor that
contributes to this however is that large number of the financial services workforce have a
qualification that is at level three (NVQ 3, A Levels, BTEC National Diploma) and a significant
number have a level 4 qualification and above (NVQ 4, Foundation Degree, Degree etc). This
therefore means that people are in education for longer and enter the labour market at an older age.

 Age (yrs)                                                          Number of employees
 16 – 24                                                            138,400
 25 – 44                                                            669,900
 45 – 54                                                            207,000
 54+                                                                84,300
Please note that the figures in the table above are not consistent with the 931,600 stated in the introductory paragraph as the source
is from the LFS and not ABI.

Full time and part time employees
Full-time employment is the norm in financial services, more so than in other industries. Overall, the
industry makes less extensive use of part-time roles, than other parts of the economy. There are
significantly more full time than part time employees in financial services in England.

 Full time employees                                                Part time employees
 789,330                                                            142,239

Employed and self employed workers
Self-employment is not only a sound entrepreneurial decision for many specialists in the industry,
but is also very often prompted by restructuring and redundancies among major employers. Still, the
level of self-employment in financial services is nowhere near that for the wider economy. There are
significantly more employed than self employed workers in financial services in England.

 Number of employed workforce                                       Number of self employed workforce
 1048,000                                                           49,132
Please note that the figures in the table above are not consistent with the 931,600 stated in the introductory paragraph as the source
is from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

2.7 Skill shortages
There have some broad areas for improvement in skills highlighted by industry. These are shown in
the table below by level of occupation.

                            Top 3 Areas for Skill Improvements
     Occupation                                      Areas
                   Doing more than expected
 Customer services
                   Product knowledge
       staff
                   Industry knowledge

                   Positive management of staff relationships
 Managers & senior
                   IT systems
    managers
                   Coping with stress or pressure

                             Understanding client needs
    Professional &
                             Working effectively with others in a team
    technical staff
                             Ability to communicate clearly at all levels

                             Product knowledge
       Sales staff           Industry knowledge
                             Business language - Written communication and literacy

                             Industry knowledge
  School leavers &
                             Product knowledge
     graduates
                             Business language - Written communication and literacy

                      Industry knowledge
   Secretarial &
                      Product knowledge
 administrative staff
                      Doing more than expected
FSSC Employer Survey
http://www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf


In terms of hard to fill vacancies in England, employers noted that there is a lack of qualified
managers and senior managers, although the current economic climate means that there are
substantial changes in the availability of skills within the labour market, which has an impact upon
employers ability to recruit to certain posts.

2.8 Information on opportunities for adults changing career direction
There are many opportunities for adults who are hoping to change career direction. Skills are very
important within the industry and employers will require individuals to demonstrate that their skills
profile matches that of the specific job to which they are applying. Financial services professionals
exist in other sectors too – financial services is a sector that cuts across many others and therefore
the skills and experiences that people bring into the industry from a wide range of backgrounds can
be very useful. The core skills that the majority of financial services employers look for in an
individual include
     customer services
     numeracy
     business communication
     IT
     written communication.
These skills can be gained from job roles in the majority of other sectors. Financial services
employers would also be looking for people who have some awareness of the sector and of the
products that are dealt with in the sector. This knowledge could be gained from studying
introductory units to give some background information on the industry and products. Please see
the education and training section of Directions to look at the study options.

2.9 Information on points of entry or transfer into a sector from another area sector
As with most career choices, there are a range of entry routes for people with different levels of
qualifications and experience. Opportunities and salary will vary across the UK too and it is
important to remember this when planning your career move. In England, apprenticeships are
available for adults in both Providing Financial Services and Advising on Financial Products. Please
see the apprenticeship section on the FSSC website for more information. Look at the individual
job profiles on the Directions website for more information on the skills profile required for each
job, along with the type of experience that may be useful. The job hunting section on the
Directions website, gives more information on how to find a job in financial services, along with
links through to specific companies and organisations.

2.10 Job profiles
Job profiles for careers in financial services can be found on the Directions website. These job
profiles cover careers within investments, banking, insurance, financial advice and credit, leasing
and finance. These can be accessed through the Directions High Street or through the A-Z List.
Alternatively click on the job below to access the PDF profile.

Actuarial (pdf)
Area Management
Asset Management (pdf)
Billing
Branch Management
Branch Operations
Business Development (pdf)
Cashier
Claims Management (pdf)
Clearing (pdf)
Client Relationship Management (pdf)
Compliance (pdf)
Complaint Handling Strategy
Corporate Actions (pdf)
Corporate Business to Business Banking
Corporate Finance Origination (pdf)
Corporate Financing (pdf)
Corporate Recovery (pdf)
Corporate Responsibility (pdf)
Corporate Treasury (pdf)
Credit Management (pdf)
Credit Risk
Credit Risk Analysis (pdf)
Customer Services (pdf)
Debt Management
Debt Recovery (pdf)
E-Commerce
Economic Analysis (pdf)
Financial Advice
Financial Planning High Net
Fixed Income Analysis (pdf)
Flow and Sales Trading (pdf)
Foreign Exchange Cashier
Foreign Exchange Research (pdf)
Foreign Exchange Sales (pdf)
Foreign Exchange Trading (pdf)
Fraud (pdf)
Fund Accounting (pdf)
Fund Administration (pdf)
Fund Reporting (pdf)
Fund Support (pdf)
Global Custody (pdf)
Human Resource Management (pdf)
Information Technology (pdf)
Institutional Sales (pdf)
Insurance Broking Retail (pdf)
Insurance Broking Wholesale (pdf)
Investment Analysis (pdf)
Investment Reconciliations (pdf)
Legal (pdf)
Loss Adjusting (pdf)
Management Information (pdf)
Market Research (pdf)
Market Strategy (pdf)
Marketing and Communications (pdf)
Mergers and Acquisitions Analysis (pdf)
Mergers and Acquisitions Senior Banker (pdf)
Mortgage Advice
New and Existing Business Administration
Paraplanning
Pensions Advice
Performance Measurement (pdf)
Pricing (pdf)
Product Management (pdf)
Project Management (pdf)
Proprietary Trading (pdf)
Risk Management (pdf)
Risk Analysis (pdf)
Sales (pdf)
Settlements (pdf)
Stockbroking (pdf)
Structuring (pdf)
Trading (pdf)
Training (pdf)
Underwriting (pdf)
Valuations (pdf)
Wealth Management (pdf)

2.11 Case studies
Case studies for careers in financial services can be found on the Directions website. These job
case studies cover careers across financial services.
Account Controller
Actuarial Consultant
Aerospace Claims Handler
Banking Advisor
Branch Manager
Business Manager
Customer Services Officer
Financial Analyst, Divisional Director
Fund Administration
Help Desk Coordinator
Investment Administration
Pension Fund Accounting Manager
Section Manager Asset Management and Securities Servicing
Senior Mortgage Adviser
Settlements Assistant Team Leader

There are also a number of video case studies which can be viewed on the Directions website.
Links to these are below:

Assistant Manager - Complaints Handling          Watch Alex's video online
Desktop Services Manager                         Watch Brain's video online
Associate Director                               Watch Caralisa's video online
Research Co-ordinator                            Watch Charley's video online
Associate Director of HR                         Watch Elizabeth's video online
Operations Support Representative                Watch Ian's video online
Financial Consultant                             Watch Ian's video online
Savings Adviser                                  Watch John's video online
Independent Financial Adviser                    Watch Jonathan's video online
Site Delivery Manager                            Watch Kerry's video online
Funding Account Manager                          Watch Magna's video online
Senior Manager - Institutional Client Services   Watch Mel's video online
Compliance & Risk Manager                        Watch Rahul's video online
Relationship Manager                             Watch Raule's video online
Client Services Manager                          Watch Richard's video online
Senior Dealer                                    Watch Scott's video online
Sales Associate                                  Watch Tom's video online
Manager for Equity Co-ordinators                 Watch Vicky's video online

2.12 FAQs
How important are qualifications and training to the financial services industry?
Employers in the sector value qualifications. Qualifications can help you get entry to a career and
get on in your career. There are a range of courses that are relevant to the industry and these can
be viewed here. Financial services is a regulated industry and therefore it is often necessary to
hold an 'appropriate examination' before being allowed to do a job unsupervised. Please see the
section on Professional Qualifications for more information. Many employers in the industry will
support you in gaining these qualifications.

Where can I find out about courses in financial services?
We would recommend you visit the National Skills Academy for Financial Services website and
also look at the Qualifications page on the Directions website, which will signpost you to relevant
sources of information on courses.

Are there apprenticeships in financial services?
Yes. Apprenticeships are available throughout the UK, but there are slight differences across the
nations. Generally, there are two frameworks available - Advising on Financial Products and
Providing Financial Services. Please see the Apprenticeship section of the Directions website for
more information.

Where can I find out more about the Diploma in Business, Administration and Finance?
Please visit the Diploma website for more information - www.baf-diploma.org.uk.

What skills are financial services employers looking for?
There are skills that all employers require, such as good communication, team work and IT skills.
There are also personal qualities that employers look for such as good timekeeping, demonstrating
an awareness of the sector and drive and resilience. There are skills however that employers in
financial services specifically are looking for from their workforce. These include business
communication skills, financial literacy, numeracy, relationship management and good customer
service. See the Finding a Job in Financial Services for more information on skills.

Are there opportunities for adults to enter the sector?
Yes. The majority of the career options in financial services require people to have good
communication skills, be good at customer service and have a good understanding of numeracy.
These are all skills that can be gained from a range of other work environments and from other
experiences in life. Employer’s value experience and this doesn't always have to be from within the
financial services industry.

Where can I find out about vacancies in financial services?
We would recommend that you look at the section on Finding a Job in Financial Services page
on the Directions website to get tips on CVs, interviews and look at the range of employers and
agencies that are featured. We would also recommend that you visit Jobcentre Plus to find out
about vacancies in your area. You could also use recruitment agencies in your local area.

2.13 Sources of additional information, web-links etc
There are a number of trade associations and professional bodies which can provide further
information on careers, education and training in financial services.

Careers information, advice and guidance
Connexions                                                         www.connexions-direct.com
Careers Advice Service                                             careersadvice.direct.gov.uk
Unionlearn                                                         www.unionlearn.org.uk
Prospects                                                          www.prospects.ac.uk
E-Financial Careers                                                www.efinancialcareers.co.uk

Course search information
Undergraduate courses                                              www.ucas.com
Postgraduate coursers                                              www.hotcourses.com
Diploma in Business, Administration and Finance                    www.baf-diploma.org.uk
National Skills Academy for Financial Services                     www.nsafs.co.uk

Trade associations
ACI UK                                                                   www.aci-uk.com
Association for Payment Clearing Services (UK)                           www.apacs.org.uk
Association of British Insurers                                          www.abi.org.uk
Association of Independent Financial Advisers                            www.aifa.net
Association of Private Client Investment Managers and Stockbrokers       www.apcims.co.uk
British Bankers' Association                                             www.bba.org.uk
British Insurance Brokers Association                                    www.biba.org.uk
Building Societies Association                                           www.bsa.org.uk
Council of Mortgage Lenders                                              www.cml.org.uk
Finance & Leasing Association                                            www.fla.org.uk
Futures & Options Association (UK)                                       www.foa.co.uk
International Underwriting Association (UK)                              www.iua.co.uk
London Investment Banking Association                                      www.liba.org.uk
National Association of Pension Funds                                      www.napf.co.uk
World Savings Banks Institute (UK)                                         www.savings-banks.com
Association of Investment Trust Companies                                  www.aitc.co.uk
Confederation of British Industry                                          www.cbi.org.uk
Investment Management Association                                          www.investmentuk.org
Lloyd’s Market Association                                                 www.lmalloyds.com
The Institute of Risk Management                                           www.theirm.org.uk
Chartered Institute of Loss Adjusters                                      www.cila.co.uk
Scottish Investment Operations                                             www.sio.org.uk

Apprenticeships
National Skills Academy for Financial Services                      www.nsafs.org.uk
Apprenticeships Online                                              www.apprenticeshipsonline.org

Awarding Organisations
ABC Awards                                                          www.abcawards.co.uk
Association of Accounting Technicians                               www.aat.org.uk
The Association of Business Executives                              www.abeuk.com
Association of Chartered Certified Accountants                      www.uk.accaglobal.com
The Chartered Institute of Bankers in Scotland                      www.ciobs.org.uk
Chartered Institute of Management Accountants                       www.cimaglobal.com
Chartered Institute of Public Finance and Accountancy               www.cityandguilds.com
The CFA Society of UK                                               www.cfa.uk.com
The CFA UK                                                          www.uksip.org
The Chartered Insurance Institute                                   www.cii.co.uk
Edexcel Limited                                                     www.edexcel.org.uk
Education Development International plc                             www.ediplc.com
The IFS School of Finance                                           www.ifslearning.ac.uk
The Institute of Certified Book-Keepers                             www.book-keepers.org
The Institute of Chartered Accountants in England & Wales           www.icaew.co.uk
Institute of Chartered Accountants in Ireland                       www.icai.ie
The Institute of Chartered Accountants in Scotland                  www.icas.org.uk
The Institute of Credit Management                                  www.icm.org.uk
The Institute of Financial Planning                                 www.financialplanning.org.uk
The Institute of Revenues Rating and Valuation                      www.irrv.net
The International Association of Book-Keepers                       www.iab.org.uk
The National Open College Network                                   www.nocn.org.uk
NCFE                                                                www.ncfe.org.uk
Oxford, Cambridge & RSA Exams                                       www.ocr.org.uk
The Pensions Management Institute                                   www.pensions-pmi.org.uk
The Scottish Qualifications Authority                               www.sqa.org.uk
Chartered Institute for Securities & Investment                     www.secinst.co.uk

2.14 Regional Information
Financial services employment and activity are unevenly distributed across the UK. London
dominates UK financial services, but a great deal of activity takes place in other English regions,
such as the South East and the North West. Financial services clusters, such as Leeds,
Manchester, and, of course, the City of London, are the hubs that drive growth and innovation in the
industry by nurturing a specialist workforce and shared business infrastructure. Different activities
are carried out in different geographical areas, taking advantage of the specific skills of the local
workforce, of cost advantages, of business and political infrastructure.

2.14.1 Financial Services in the East Midlands
Retail banking dominates financial services employment in the East Midlands. There are 43,777
people employed in financial services in the East Midlands. The average earnings are £30,050 per
annum.
Gender breakdown
There are more females in the East Midlands financial services labour market than male.

                                              Male                                          Female
 East Midlands                                16,959                                        26,818

Age range of workforce
There are more financial services employees in the 25 - 44 years age bracket in the East Midlands.
The bracket for this age group is wider than the others and this does explain the increased number
of employees.

 Age (yrs)                                                           Number of employees
 16 – 24                                                             8,700
 25 – 44                                                             25,800
 45 – 54                                                             14,200
 54+                                                                 5,800
Please note that the figures in the table above are not consistent with the 43,777 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Full time and part time employees
There are significantly more full time workers in the East Midlands than part time.

 Full time employees                                                 Part time employees
 35,100                                                              8,677

Employed and self employed workers
There are significantly more employed people in financial services in the East Midlands than self
employed. This is representative of the entire financial services workforce UK wide however.

 Number of employed workforce                                        Number of self employed workforce
 53,700                                                              800
Please note that the figures in the table above are not consistent with the 43,777 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

Skill shortages
Skill shortages in the East Midlands mirror those of the wider UK. These are shown in the table
below by level of occupation.
                                      Top 3 areas for skill improvement
        Occupation                                                  Areas
                                   Doing more than expected
 Customer services staff           Working effectively with others in a team
                                   Business language - Written communication and literacy

                                   Working effectively with others in a team
    Managers & senior
                                   IT systems
       managers
                                   Doing more than expected

                                   Working effectively with others in a team
 Professional & technical
                                   Self-motivation and direction
          staff
                                   Coping with stress or pressure

                                   Self-motivation and direction
         Sales staff               Moving on from criticism or setbacks
                                   Business language - Written communication and literacy

                                   Self-motivation and direction
     School leavers &
                                   Working effectively with others in a team
        graduates
                                   Product knowledge

                                   Self-motivation and direction
       Secretarial &
                                   Doing more than expected
       administrative
                                   Business language - Written communication and literacy
FSSC Employer Survey
http://www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.2 Financial Service in the East of England
The in East of England, banks and building societies are not as central to employment in the region
as they are elsewhere, with only one-third of the total financial services workforce working in the
sector. Instead, general insurance and insurance broking are more important to employment in this
region than to any other. This is partly because the East of England is home to the insurance hub of
Norwich (and, to a lesser extent, Peterborough), which is the single busiest insurance centre
outside London. This activity is complemented by a strong insurance broking sector in Norwich and
Ipswich, and smaller concentrations in Brentwood and Southend-on-Sea. Major employers in these
areas include Barclays Personal Insurance, First Direct, HSBC, Lloyds TSB, Marsh, Norwich &
Peterborough Building Society, Norwich Union and RBS. There are 72,006 people employed in
financial services in the East of England. The average earnings are £32,202 per annum.

Gender breakdown
There are more females in the East of England financial services labour market than male.

                                            Male                                         Female
 East of England                            31,805                                       40,200

Age range of workforce
There are more financial services employees in the 25 - 44 years age bracket in the East of
England. The bracket for this age group is wider than the others and this does explain the increased
number of employees.

 Age (yrs)                                                        Number of employees
 16 – 24                                                          15,000
 25 – 44                                                          94,800
 45 – 54                                                          35,600
 54+                                                              13,700
Please note that the figures in the table above are not consistent with the 72,006 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Full time and part time employees
There are significantly more full time workers in the East of England than part time.

 Full time employees                                                 Part time employees
 59,197                                                              12,819

Employed and self employed workers
There are significantly more employed people in financial services in the East of England than self
employed. This is representative of the entire financial services workforce UK wide however.

 Number of employed workforce                                        Number of self employed workforce
 153,700                                                             5,500
Please note that the figures in the table above are not consistent with the 72,006 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

Skill shortages
The East of England benefits from the abilities of a highly skilled workforce, but is one which cannot
be replenished or expanded easily due to skills shortages. Skill shortages in the East of England
mirror those of the wider UK. These are shown in the table below by level of occupation.

                                       Top 3 areas for skill improvements
      Occupation                                                 Areas
                               Product knowledge
  Customer services
                               Industry knowledge
        staff
                               Self-motivation and direction

                               Project and people organisation
  Managers & senior
                               Finding and communicating alternative solutions
     managers
                               IT systems

                               Understanding client needs
     Professional &
                               Ability to communicate clearly at all levels
     technical staff
                               Finding and communicating alternative solutions

                               Industry knowledge
       Sales staff             Coping with stress or pressure
                               IT systems

                               Product knowledge
   School leavers &
                               Business language - Written communication and literacy
      graduates
                               Industry knowledge

                               Industry knowledge
    Secretarial &
                               Self-motivation and direction
  administrative staff
                               Numeracy
FSSC Employer Survey
www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.3 Financial Services in London
London dominates the financial services industry. Wholesale banking, investment management
and wholesale insurance are key activities in London and are centered on the City and Canary
Wharf, accounting London is the undisputed focal point for investment and fund management and
security broking and is home to all the UK’s major exchanges and financial markets. Wholesale
financial services are not the only type of activity concentrated in London. The City is a focus for all
financial services sectors, as is Canary Wharf. Extensions to the City, specialising in auxiliary
services and financial advice, include Southwark and Islington and a great deal of employment in
non-life insurance is concentrated around Croydon. Financial services in the Greater London region
are far more clustered than in the rest of the UK. There are 325, 813 people employed in financial
services in London. The average earnings are £96, 909 per annum, although this is due to the
number of high earning posts in the City. This is not representative of the majority of the London
workforce in financial services, however earning are still considerably higher in London than in the
other English regions.

Gender breakdown
There are more males in the London financial services labour market than female.

                                             Male                                          Female
 London                                      192,575                                       133,238

Age range of workforce
There are more financial services employees in the 25 - 44 years age bracket in London. The
bracket for this age group is wider than the others and this does explain the increased number of
employees. Another factor that contributes to this however is that a large number of the financial
services workforce in London are qualified at level 4 and above (NVQ 4, Foundation Degree,
Degree, Masters etc). This therefore means that people are in education for longer and enter the
labour market at an older age.

 Age (yrs)                                                          Number of employees
 16 – 24                                                            22,900
 25 – 44                                                            220,600
 45 – 54                                                            28,100
 54+                                                                13,200
Please note that the figures in the table above are not consistent with the 325,813 stated in the introductory paragraph as the source
is from the LFS and not ABI.

Full time and part time employees
There are significantly more full time workers in London than part time.

 Full time employees                                                Part time employees
 300,768                                                            25,046

Employed and self employed workers
There are significantly more employed people in financial services in London than self employed.
This is representative of the entire financial services workforce UK wide however.

 Number of employed workforce                                       Number of self employed workforce
 271,400                                                            12,600
Please note that the figures in the table above are not consistent with the 325,813 stated in the introductory paragraph as the source
is from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

Skill shortages
London is reported to have the smallest percentage of skills-challenged employers. There is
competition in London for school leavers and graduates as employers graduate schemes
aggressively target the graduate market, competing for fresh talent. Skill shortages in London mirror
those of the wider UK. These are shown in the table below by level of occupation.

                                          Top 3 areas for skill improvements
          Occupation                                                  Areas
                                       Product knowledge
   Customer services staff             Industry knowledge
                                       Self-motivation and direction

                                       Project and people organisation
      Managers & senior
                                       Finding and communicating alternative solutions
         managers
                                       IT systems

                                       Understanding client needs
  Professional & technical
                                       Ability to communicate clearly at all levels
           staff
                                       Finding and communicating alternative solutions

                                       Industry knowledge
           Sales staff                 Coping with stress or pressure
                                       IT systems

                                       Product knowledge
       School leavers &
                                       Business language - Written communication and literacy
          graduates
                                       Industry knowledge

                                       Industry knowledge
        Secretarial &
                                       Self-motivation and direction
      administrative staff
                                       Numeracy
FSSC Employer Survey
www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.4 Financial Services in the North East
The North East is another region where financial services are heavily geared towards banking and
insurance broking. The region is led by the financial services cluster in Newcastle upon- Tyne. The
Newcastle and Universal building societies, which have now merged into Newcastle Building
Society is a major employer. There are 28,387 people employed in financial services in the North
East. The average earnings are £26,538 per annum.

Gender breakdown
There are more females in the North East financial services labour market than male.

                                              Male                                          Female
 North East                                   10,678                                        17,700

Age range of workforce
There are more financial services employees in the 25 - 44 years age bracket in the North East. The
bracket for this age group is wider than the others and this does explain the increased number of
employees.

 Age (yrs)                                                           Number of employees
 16 – 24                                                             8,600
 25 – 44                                                             16,000
 45 – 54                                                             6,300
 54+                                                                 900
Please note that the figures in the table above are not consistent with the 28,387 stated in the introductory paragraph as the source is
from the LFS and not ABI.
Full time and part time employees
There are significantly more full time workers in the North East than part time.

 Full time employees                                                 Part time employees
 20,300                                                              7,100

Employed and self employed workers
There are significantly more employed people in financial services in the North East than self
employed. This is representative of the entire financial services workforce UK wide however.

 Number of employed workforce                                        Number of self employed workforce
 30,700                                                              1,000
Please note that the figures in the table above are not consistent with the 28,387 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

Skill shortages
Skill shortages in North East mirror those of the wider UK. These are shown in the table below by
level of occupation.

                                       Top 3 areas for skill improvements
        Occupation                                                  Areas
                                   Industry knowledge
    Customer services
                                   Technical and practical knowledge
          staff
                                   Moving on from criticism or setbacks

                                   IT systems
    Managers & senior
                                   Positive management of staff relationships
       managers
                                   Moving on from criticism or setbacks

                                   Moving on from criticism or setbacks
       Professional &
                                   Understanding client needs
       technical staff
                                   Working effectively with others in a team

                                   IT systems
         Sales staff               Industry knowledge
                                   Coping with stress or pressure

                                   Industry knowledge
     School leavers &
                                   Product knowledge
        graduates
                                   Business language - Written communication and literacy

                                   Industry knowledge
      Secretarial &
                                   Doing more than expected
    administrative staff
                                   Project and people organisation
FSSC Employer Survey
www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.5 Financial Services in the North West
The industry in the North West is on a par with that of Scotland as a contributor to employment.
Although Manchester forms an obvious focal point for all financial services sectors in the region,
Chester, Macclesfield and Stockport are also important industry clusters. Banking and general
insurance, mostly centered on Manchester and Chester, account for most of the financial services
employment in the North West. Manchester is a diverse financial services centre, with dense
employment across all sectors, while Chester focuses on banking and auxiliary services. Among the
smaller centres, Macclesfield focuses on credit granting and insurance broking, and Stockport is
strongest in financial leasing. Major employers include Barclays, the Cheshire Building Society,
Cooperative Financial Services and Insurance Society, London Scottish Bank, MBNA, M&S Money
and Royal Bank of Scotland. Since 2004, the region has also attracted investment from the Bank of
New York, Bank of America and the State Bank of India.

There are 103,648 people employed in financial services in the North West. The average earnings
are £29,865 per annum.

Gender breakdown
There are more females in the North West financial services labour market than male.

                                             Male                                          Female
 North West                                  44,822                                        58,827

Age range of workforce
There are more financial services employees in the 25 - 44 years age bracket in the North West.
The bracket for this age group is wider than the others and this does explain the increased number
of employees.

 Age (yrs)                                                          Number of employees
 16 – 24                                                            15,500
 25 – 44                                                            69,900
 45 – 54                                                            22,100
 54+                                                                8,200
Please note that the figures in the table above are not consistent with the 103,648 stated in the introductory paragraph as the source
is from the LFS and not ABI.

Full time and part time employees
There are significantly more full time workers in the North West than part time.

 Full time employees                                                Part time employees
 84,465                                                             19,183

Employed and self employed workers
There are significantly more employed people in financial services in the North West than self
employed. This is representative of the entire financial services workforce UK wide however.

 Number of employed workforce                                       Number of self employed workforce
 110,500                                                            4,800
Please note that the figures in the table above are not consistent with the 103,648 stated in the introductory paragraph as the source
is from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

Skill shortages
The supply of skills in the labour market in the North West is at relatively high levels but employers
are reporting extensive skill gaps among their employees. Employers in the North West were
concerned about lack of applicants to sales and customer services roles. Skill shortages in North
West mirror those of the wider UK. These are shown in the table below by level of occupation.

                                      Top 3 areas for skill improvements
    Occupation                                                  Areas
  Customer services           Industry knowledge
        staff                 Product knowledge
                              IT systems

                              Industry knowledge
 Managers & senior
                              Positive management of staff relationships
    managers
                              Project and people organisation

                              Working effectively with others in a team
    Professional &
                              Management of customer or b2b relationships
    technical staff
                              Understanding client needs

                              Technical and practical knowledge
       Sales staff            IT systems
                              Industry knowledge

                              Industry knowledge
   School leavers &
                              Self-motivation and direction
      graduates
                              Understanding client needs

                              Flexibility and co-operation
   Secretarial &
                              Business language - Written communication and literacy
 administrative staff
                              IT systems
FSSC Employer Survey
www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.6 Financial Services in the South East
The South East is the most important contributor to financial services employment and output
outside London. Currently, the region holds the UK’s greatest share of employment in leasing and
credit granting, most notably in Brighton and Hove, Reading, Reigate and Banstead, as well as life
insurance and pension funding, centered on Reading and Reigate and Banstead. These two areas
additionally attract much of the employment in auxiliary services, including financial advice. Major
employers in these areas of concentration include American Express, GMAC, HSBC, Legal &
General, Lloyds TSB, Prudential and Skandia.

There are 124,425 people employed in financial services in the South East. The average earnings
are £36,732 per annum.

Gender breakdown
There are more females in the South East financial services labour market than male.

                                             Male                                          Female
 South East                                  56,224                                        68,202

Age range of workforce
There are more financial services employees in the 25 - 44 years age bracket in the South East.
The bracket for this age group is wider than the others and this does explain the increased number
of employees.

 Age (yrs)                                                          Number of employees
 16 – 24                                                            21,000
 25 – 44                                                            100,400
 45 – 54                                                            41,200
 54+                                                                20,900
Please note that the figures in the table above are not consistent with the 124,425 stated in the introductory paragraph as the source
is from the LFS and not ABI.

Full time and part time employees
There are significantly more full time workers in the South East than part time.
 Full time employees                                                Part time employees
 102,179                                                            22,246

Employed and self employed workers
There are significantly more employed people in financial services in the South East than self
employed. This is representative of the entire financial services workforce UK wide however.

 Number of employed workforce                                       Number of self employed workforce
 173,400                                                            9500
Please note that the figures in the table above are not consistent with the 124,425 stated in the introductory paragraph as the source
is from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

Skill shortages
The South East is threatened by a combination of significant skills gaps and an insufficient supply of
skills through the labour market. One of the reasons for this is that London is very close and is a
drain on talent. Skill shortages in the South East mirror those of the wider UK. These are shown in
the table below by level of occupation.

                                        Top 3 areas of skill improvements
        Occupation                                                 Areas
                                   Business language - Written communication and literacy
    Customer services
                                   Product knowledge
          staff
                                   Doing more than expected

                                   Positive management of staff relationships
    Managers & senior
                                   IT systems
       managers
                                   Coping with stress or pressure

                                   Product knowledge
       Professional &
                                   Industry knowledge
       technical staff
                                   Ability to communicate clearly at all levels

                                   Product knowledge
         Sales staff               Business language - Written communication and literacy
                                   Industry knowledge

                                   Business language - Written communication and literacy
     School leavers &
                                   Doing more than expected
        graduates
                                   Industry knowledge

                                   Product knowledge
      Secretarial &
                                   Industry knowledge
    administrative staff
                                   Doing more than expected
FSSC Employer Survey
www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf


2.15.7 Financial Services in the South West
Many of the roles in the financial services industry in the South West are clustered in Bristol,
Bournemouth, Gloucester and Swindon. . Employment in life insurance and pension funding are
mainly concentrated in Bournemouth and Swindon. Despite this emphasis on insurance, almost half
the region’s employees work in banks and building societies. Major employers include AXA,
Cheltenham & Gloucester, JPMorgan Chase, Lincoln Financial Group, Lloyds TSB, Nationwide and
Zurich.

There are 78,357 people employed in financial services in the South West. The average earnings
are £36,343 per annum.

Gender breakdown
There are more females in the South West financial services labour market than male.

                                              Male                                          Female
 South West                                   33,000                                        45,309

Age range of workforce
There are more financial services employees in the 25 - 44 years age bracket in the South West.
The bracket for this age group is wider than the others and this does explain the increased number
of employees.
 Age (yrs)                                         Number of employees
 16 – 24                                           17,300
 25 – 44                                           49,200
 45 – 54                                           23,100
 54+                                               8,300
Please note that the figures in the table above are not consistent with the 78,357 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Full time and part time employees
There are significantly more full time workers in the South West than part time.

 Full time employees                                                 Part time employees
 63,200                                                              15,900

Employed and self employed workers
There are significantly more employed people in financial services in the South West than self
employed. This is representative of the entire financial services workforce UK wide however.

 Number of employed workforce                                        Number of self employed workforce
 91,500                                                              5,700
Please note that the figures in the table above are not consistent with the 78,357 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

Skill shortages
The South West benefits from the abilities of a highly skilled workforce, but is one which cannot be
replenished or expanded easily due to skills shortages. Skill shortages in the South West mirror
those of the wider UK. These are shown in the table below by level of occupation.

                                        Top 3 areas of skill improvements
        Occupation                                                  Areas
                                   Understanding client needs
    Customer services
                                   Product knowledge
          staff
                                   Numeracy
                                   Positive management of staff relationships
    Managers & senior
                                   IT systems
       managers
                                   Product knowledge
       Professional &              Understanding client needs
       technical staff             Positive management of staff relationships
                                   IT systems
                                   Product knowledge
         Sales staff               Numeracy
                                   Understanding client needs
                                   Industry knowledge
     School leavers &
                                   Understanding client needs
        graduates
                                   Product knowledge
                                   Industry knowledge
      Secretarial &
                                   Business language - Written communication and literacy
    administrative staff
                                   Understanding client needs
FSSC Employer Survey
www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.8 Financial Services in the West Midlands
Birmingham is the region’s sole financial services cluster, which focuses on banking, general
insurance and credit. Owing largely to Birmingham’s specialisation, the region is the second largest
employment hub in credit after the South East, with HSBC Asset Finance the largest employer in
the sector.

There are 66,870 people employed in financial services in the West Midlands.                                         The average
earnings are £28,856 per annum.

Gender breakdown
There are more females in the West Midlands financial services labour market than male.

                                              Male                                          Female
 West Midlands                                26,237                                        40,634

Age range of workforce
There are more financial services employees in the 25 - 44 years age bracket in the West Midlands.
The bracket for this age group is wider than the others and this does explain the increased number
of employees.

 Age (yrs)                                                           Number of employees
 16 – 24                                                             14,700
 25 – 44                                                             36,800
 45 – 54                                                             19,700
 54+                                                                 5,000
Please note that the figures in the table above are not consistent with the 66,870 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Full time and part time employees
There are significantly more full time workers in the West Midlands than part time.

 Full time employees                                                 Part time employees
 52,598                                                              14,272

Employed and self employed workers
There are significantly more employed people in financial services in the West Midlands than self
employed. This is representative of the entire financial services workforce UK wide however.

 Number of employed workforce                                        Number of self employed workforce
 70,600                                                              5,500
Please note that the figures in the table above are not consistent with the 66,870 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

Skill shortages
Skill shortages in the West Midlands mirror those of the wider UK. These are shown in the table
below by level of occupation.

                                      Top 3 areas for skill improvements
        Occupation                                                Areas
                                  Numeracy
    Customer services
                                  Technical and practical knowledge
          staff
                                  Coping with stress or pressure

                                  Project and people organisation
    Managers & senior
                                  Positive management of staff relationships
       managers
                                  Ability to communicate clearly at all levels

                                  Doing more than expected
      Professional &
                                  Ability to communicate clearly at all levels
      technical staff
                                  Understanding client needs

                                  Product knowledge
         Sales staff              Self-motivation and direction
                                  Business language - Written communication and literacy

                                  Doing more than expected
     School leavers &
                                  Industry knowledge
        graduates
                                  Ability to communicate clearly at all levels

                                  Product knowledge
      Secretarial &
                                  Industry knowledge
    administrative staff
                                  Self-motivation and direction
FSSC Employer Survey
www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.9 Financial Services in Yorkshire and the Humber
There is an emphasis on retail banking and an occupational mix weighted towards lower value-
added roles in Yorkshire and the Humber. Banks employ more than half the region’s financial
services workforce, followed by non-life insurance and auxiliary services. This activity is centered on
Leeds, where one-third of the region’s financial services staff work. In addition to banking and
insurance, Leeds also has a high concentration of employment in credit granting. Major employers
include First Direct, Privilege Insurance, Yorkshire Bank and the Bank of England.

There are 88,285 people employed in financial services in Yorkshire and the Humber. The average
earnings are £30,324 per annum.

Gender breakdown
There are more females in Yorkshire and the Humber financial services labour market than male.

                                           Male                                        Female
 Yorkshire and the Humber                  38,110                                      50,175

Age range of workforce
There are more financial services employees in the 25 - 44 years age bracket in Yorkshire and the
Humber. The bracket for this age group is wider than the others and this does explain the increased
number of employees.
 Age (yrs)                                                           Number of employees
 16 – 24                                                             14,800
 25 – 44                                                             56,500
 45 – 54                                                             16,800
 54+                                                                 8,300
Please note that the figures in the table above are not consistent with the 88,285 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Full time and part time employees
There are significantly more full time workers in Yorkshire and the Humber than part time.

 Full time employees                                                 Part time employees
 68,000                                                              18,100

Employed and self employed workers
There are significantly more employed people in financial services in the Yorkshire and the Humber
than self employed. This is representative of the entire financial services workforce UK wide
however.

 Number of employed workforce                                        Number of self employed workforce
 92,600                                                              3,700
Please note that the figures in the table above are not consistent with the 88,285 stated in the introductory paragraph as the source is
from the LFS and not ABI.

Forecasting
It is not currently possible to provide accurate information regarding the forecasting of the changes
that will occur in the financial services labour market due to the current economic conditions.

Skill shortages
Yorkshire and the Humber is threatened by a combination of significant skills gaps and an
insufficient supply of skills through the labour market. Skill shortages in Yorkshire and the Humber
mirror those of the wider UK. These are shown in the table below by level of occupation.


                                          Top 3 areas for skill improvement
            Occupation                                                   Areas
                                          Moving on from criticism or setbacks
    Customer services staff               Doing more than expected
                                          Technical and practical knowledge

                                          Positive management of staff relationships
       Managers & senior
                                          Moving on from criticism or setbacks
          managers
                                          Flexibility and co-operation

                                          Working effectively with others in a team
    Professional & technical
                                          Doing more than expected
             staff
                                          Understanding client needs

                                          Product knowledge
             Sales staff                  Doing more than expected
                                          Coping with stress or pressure

                                          Industry knowledge
 School leavers & graduates               Product knowledge
                                          Self-motivation and direction
                                          Industry knowledge
    Secretarial & administrative
                                          Ability to resolve issues and use initiative
                staff
                                          Flexibility and co-operation
FSSC Employer Survey
www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

1
  Figures quoted in this document are from the 2008 Annual Business Inquiry (ABI) Employee Analysis and the 2008 Office for
National Statistics (ONS) Labour Force Survey (LFS), unless explicitly stated. ABI figures are the primary data sources used to reflect
more accurate labour market information at regional level, while the LFS data are used whenever the ABI data are not available. The
LFS figures quoted in this document include: ‘Age range of workforce’ and ‘Employed and self employed workers’. Please note due to
different sampling methods and the time lag between surveys, the LFS figures may not be consistent with the ABI figures. Therefore,
direct comparisons between the two data sources should be avoided.
2
  Annual Survey of Hours and Earnings, 2009
he
LFS figures quoted in this document include: ‘Age range of workforce’ and ‘Employed and self employed workers’. Please note due to
different sampling methods and the time lag between surveys, the LFS figures may not be consistent with the ABI figures. Ther efore,
direct comparisons between the two data sources should be avoided.
2
  Annual Survey of Hours and Earnings, 2009

				
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