UK Financial Services Education & Training 2010 www.TheCityUK.com
This report highlights the wide range of educational, occupational and other specialist training provision in financial and professional services that can be accessed from the UK. Key providers whose services are highlighted in the report include professional institutions; pre-employment education services offered by universities, business schools and further education colleges; and other private sector suppliers such as the exchanges, specialist training firms and industry associations. The report notes the key facilitating role of UK government and public sector organisations.
SECTiOn 1: SErving
EdUCaTiOn & Training
Chart 1 UK professional institutions membership Thousands of qualified members 2009/2010 Others CISI 91 Actuaries 15 IFS 2821 CII
There is a growing demand for training, educational and occupational services which equip professionals with skills that are internationally mobile and qualifications that are recognised and can be applied in any country.
ACCA 137 ICAEW Accounting 135 institutes
80 CIMA 145
47 AAT Other accounting
Total membership 955,000
1. Strengths of UK service providers The UK has built a strong global reputation in education and training services, which is based on a number of key factors:
See Table 3 for full membership breakdown of professional institutions Source: Institutes
International orientation of many service providers: International membership Around 30 key institutions in financial and professional services with a total membership approaching one million have 184,000 members based in other countries, 19% of total membership (Chart 1). Many of the institutions have an international branch or office structure in order to consult and involve the whole membership. International partnerships Many institutes work in partnership with parallel institutes in other countries sometimes under the umbrella of an international organisation representing their profession or discipline. International students According to the annual OECD report Education at a Glance the UK accounted for 10% of 3.3 million international students being educated at the tertiary level in a country other than their home country (Chart 3). The UK was second only to the US, with Germany, France and Australia being the next most popular destination countries. London’s status as a global financial centre gives a cutting edge to the qualifications and professional development offered by institutions and firms (Table 2). It ensures that learning services, whether to individuals or to organisations, remain relevant to the global financial environment. Broad spectrum of disciplines covered by institutions The UK’s international reputation is enhanced by the broad spectrum of disciplines covered by institutions representing financial and professional services in the UK. These institutions cover banking, insurance, securities, accounting and legal services as well as many others including surveyors, the actuarial profession, dispute resolution, corporate treasurers, shipbroking, pensions management, credit management and risk management.
Table 1 Main destination countries for international students in tertiary education Main destination countries
US UK Germany France Australia Canada Russia Japan Italy Spain New Zealand Other countries Total
2000 ‘000s 475 223 187 137 106 94 41 67 25 26 8 582 1971
2008 ‘000s 624 336 246 243 231 185 143 127 68 65 60 1015 3343
2008 2000 % share % share 18.7 24.1 10.0 11.3 7.3 9.5 7.3 7.0 6.9 5.4 5.5 4.8 4.3 2.1 3.8 3.4 2.0 1.3 1.9 1.3 1.8 0.4 30.4 29.5 100.0 100.0
Source: OECD Education at a Glance 2010
Integrated structure and relevance of qualifications The institutions have an integrated structure which permits, where appropriate, movement from a technical or entry level through to achievement of chartered / professional status. The modular structure allows for choice in pursuit of qual-
Financial Services Education & Training 2010
ifications. Training and qualifications are adapted, for example to take account of regulatory developments, to ensure that they remain appropriate and meet requisite standards. Practitioners each industry or discipline facilitate this process by devising and monitoring examinations. Continuous professional development The institutions and other providers offer a broad range of training and continuous learning opportunities in order to ensure that professionals are able to update and develop their core competencies. Historical reputation Many of the institutions and universities have an established track record, sometimes going back over a century, in providing vocational and occupational qualifications that are widely recognised.
Table 2 London's share of international financial markets London's share in 2009 Base metals trading 90% International bond trading 70% Ship broking 50% Derivatives (over-the-counter)* 43% Foreign exchange trading** 37% Hedge fund assets 20% Foreign equities trading 19% Cross border bank lending 18% Marine insurance 17% Markets
2. accreditation, education and training provided out of the UK Training and education supplied from the UK to the international market consists of three broad categories:
World ranking 1 1 1 1 1 2 2 1 1
Source: Bank for International Settlements, Baltic Exchange London Metal Exchange, Int. Union of Marine Insurance, Int. Capital Market Association, World Federation of Exchanges
Occupational and vocational qualifications required for entry or induction to employment as well as for career development are offered by professional institutions covering a range of disciplines in financial and professional services, including banking, insurance, capital markets, accountancy, law and dispute resolution. Pre-employment education services are offered by universities, business schools and further education colleges. Universities and business schools Higher education offered by universities and business schools spans a variety of undergraduate and postgraduate degree courses of direct relevance to the financial and professional services industry. A study by the Financial Services Skills Council (FSSC) has shown that graduates in economics and business studies formed the highest proportion of graduates entering financial services, accounting for 14% and 13% of the intake respectively (Chart 2). These were followed by computer science, mathematics, finance, accounting and management studies. Taken together these subjects accounted for more than half the intake into financial services. The FSSC study did not take account of entry into professional services, with a law degree being a prerequisite for a career in legal services. Undergraduate courses provide an entry into a professional role. A postgraduate qualification may be used to achieve a more advanced qualification at the pre-employment stage or to facilitate a career move. Further education Around 200 of the UK’s further education colleges are active in recruiting international students and in establishing partnerships overseas. Such partnerships include institutional twinning, student and staff exchanges, and development of distance learning programmes. The number of international students in FE colleges in the UK has risen over the past decade. Specialised training and learning services, usually at an advanced level, are provided by a number of organisations, such as professional service firms to their clients and firms that specialise in the supply of training services. The products and services of these various organisations include: -
Professional and vocational qualifications delivered in the UK and overseas.
Chart 2 Main degrees of graduate intake into UK financial services % share, 2006 Economics 14%
47% Other courses
Business 13% studies
Computer science 6% 4% Mathematics 4%4% Finance Management Accounting studies Source: Financial Services Skills Council: 'The view from Europe: Productivity and change in UK financial services' December 2007
Financial Services Education & Training 2010
Courses up to degree level for international students and trainees Consultancy and training overseas by UK suppliers. The export of books, equipment, software and other materials. Distance and e-learning programmes.
3. UK government’s role in building on expertise The UK Government has recognised it has a key role in enhancing the competitiveness of the UK as a centre of excellence in the provision of academic, occupational and vocational qualifications. The Prime Minister’s Initiative (PMI), on a broad front, has given direction to the marketing of international educational services from the UK. The first phase contributed to growth in international students particularly from outside the EU and has helped to raise global awareness of the UK. Key to this has been the development of the Education UK website www.educationuk.org. The second phase, PMI2, is a five year strategy from 2006 to 2011 to strengthen the UK’s position in international education. Key aspects of the strategy are to: -
Promote the benefits of a UK education to international students Ensure international students’ experience of their UK studies is positive. Help UK education providers to build strategic alliances and partnerships, and demonstrate the UK as a valued partner in policy and delivery. Diversify and consolidate markets. Some 24 priority markets have been selected, with a concentration on Asia with 14 countries, including China, India and Indonesia. Priorities also include the three major countries in North America - US, Canada and Mexico - as well as a selection of other countries including Brazil, Russia, Turkey, Australia and The Gulf.
Specific targets for 2011 are to: -
Attract an additional 70,000 international students to UK Higher Education, and an additional 30,000 international students to UK Further Education Improve student satisfaction ratings in the UK Increase the number of partnerships between the UK and other countries Doubling of countries sending over 10,000 students each year to the UK.
The establishment of the Financial Services Skills Council (FSSC) in 2004 also represented a key mechanism for delivering the UK Government’s overall objectives. Part of the FSSC’s remit is to enhance the profile and reputation of UK financial services qualifications in the global community. Amongst public sector organisations, the Financial Services Authority and the Bank of England also have a role in facilitating training, as indicated in the side panel. The strategy on trade development and export promotion in the education and training sector involves a range of providers in the public and private sector. A key component of the strategy is to work with industry in identifying opportunities overseas and specifying how the UK Government can support industry’s own efforts.
Public sector training organisations Public sector organisations have a key facilitating role both in developing the structure of qualifications and in promoting UK expertise around the world: British Council The British Council is the UK’s official public sector international organisation that connects people worldwide with educational and other learning opportunities available from UK providers of education services. It aims to build lasting partnerships between the UK and other countries. The British Council helps to bring 450,000 foreign students to the UK and has created 2,700 school links between UK and other countries. The Bank of England’s Centre for Central Banking Studies (CCBS) conducts seminars and provides expert advice for central banks around the world. Its 2009 programme involved 1,185 participants from 125 central banks in 50 events, 23 of which were overseas. CCBS is a centre for comparative study and collaborative research on issues at the forefront of central banking. Its primary aims are to foster monetary and financial stability worldwide, to promote the Bank of England's core activities, and to provide opportunities for central banking staff to obtain broader perspectives on their own areas of expertise. Its goal is to be recognised internationally as a centre of intellectual excellence for the study of central banking. Financial Services Authority (FSA) The FSA sets the standards and competence that firms are required to reach in the provision of financial services. Firms are expected to make their own arrangements for implementation but, as a centre of expertise, the FSA can advise firms on how to implement training and competence requirements. The FSA also offers training to improve the ability of firms to achieve compliance and tackle financial crime. Financial Services Skills Council (FSSC) The FSSC is a strategic, independent, employer-led organisation which aims to enhance professionalism and talent for finance, accountancy and financial services across the UK. It acts as a link between industry, government and education. The FSSC sets performance standards for the entire sector, and is responsible for the industry’s qualifications framework and for promoting financial services as careers of first choice.
SECTiOn 2 UK OrganiSaTiOnS OFFEring aCCrEdiTaTiOn, Training and EdUCaTiOn SErviCES Institutions and firms in the UK offer a wide range of accreditation, training, and qualifications in financial and related professional services to the international community. These can be divided into three broad categories: professional institutions; universities and other academic establishments; and a range of other providers including the exchanges, specialist training firms, industry associations and organisations promoting education and training in their area of the UK. i. PrOFESSiOnal inSTiTUTiOnS Professional institutions offer a range of occupational qualifications in a wide range of disciplines in financial and related professional services. These institutions have a total membership of 955,000 of which 184,000 are based in other countries (Table 3). 1. institutions representing financial services Institutions cover banking, insurance, securities and investment and other specialist areas such as shipbroking. Banking and finance The ifs School of Finance has a remit to provide the financial services industry with a skilled and competent workforce whilst also promoting a better understanding of finance amongst consumers. It originally started life to provide qualifications for the banking sector, but has since expanded into other financial disciplines and now has over 60,000 students studying on its various programmes across the world. The ifs School of Finance offers qualifications across the educational spectrum from GCSE, AS and A level equivalent qualifications in personal finance to qualifications for regulated advisers and postgraduate degrees in financial services management. The ifs School of Finance was granted Taught DegreeAwarding Powers as of 2 January 2010. The Chartered Institute of Bankers in Scotland (CIOBS), established in 1875, is the oldest banking institute in the world and today enjoys a global reputation as a leader in banking education. The Institute offers a range of qualifications from the entry level Certificate programmes to Chartered Banker, the flagship professional level programme. The Institute also offers regulatory qualification programmes in mortgage advice and investment advice.
Financial Services Education & Training 2010 Table 3 Professional organisations in the UK Organisations & institutions in financial and professional services Number of qualified members, 2009/2010 of which: Accounting Total overseas Inst. of Chart. Accountants in England & Wales (ICAEW) 134698 20230 Assoc. of Chartered Certified Accountants (ACCA) 68326 137233 Inst. of Chartered Accountants of Scotland (ICAS) 2420 18278 Chartered Inst. of Management Accountants (CIMA) 16244 79757 Inst. of Chartered Finance and Accountancy (CIPFA) 350 13790 Association of International Accountants (AIA) 3100 4700 Chartered Inst. of Internal Auditors (CIIA) --8474 Association of Accounting Technicians (AAT) 2533 47261 Institute of Financial Accountants (IFA) 2500 6500 Int. Association of Book-keepers (IAB) 300 2300 Banking & Finance IFS School of Finance Chartered Institute of Bankers in Scotland (CIOBS)
Insurance Chartered Insurance Institute (CII) Chartered Institute of Loss Adjusters (CILA)
Securities Chartered Institute for Securities & Investment (CISI) CFA Society of the UK (CFA UK)
Legal Law Society of England & Wales Law Society of Scotland Bar Council Faculty of Advocates Scottish Bar
145381 10500 12241 460
6192 --22 ---
Others Royal Institute of Chartered Surveyors (RICS) Institute and Faculty of Actuaries Chartered Institute of Taxation (CIOT) Chartered Institute of Arbitrators (CIArb) Institute of Credit Management (ICM) Pensions Management Institute (PMI) Association of Corporate Treasurers (ACT) Institute of Chartered Shipbrokers (ICS) International Compliance Association (ICA)
104500 21041 15000 11854 8500 3000 3954 3500 3000
19500 8400 --6384 300 100 700 1800 1800
Sources: The institutions, FRC Professional Oversight Board, TheCityUK estimates
Insurance The Chartered Insurance Institute (CII), with over 95,000 members, is the largest professional body serving the insurance and financial services sector. Through its faculty structure the CII represents specific interests of the London market, life and pensions, insurance brokers, underwriters and claims professionals. The CII’s other specialist interests include its Society of Mortgage Professionals as well as corporate and personal financial planning, with the latter providing services to financial advisers. CII’s Royal Charter remit is “to secure and justify the confidence of the public in its members and in the insurance and financial services sector. The CII is working hard to restore public confidence and trust in the financial service market. It has over 15,000 members based outside the UK in over 150 countries and 71 affiliated insurance institutes worldwide. The Chartered Institute of Loss Adjusters (CILA) are a body of independ-
Financial Services Education & Training 2010
ent claims specialists who operate under a Royal Charter to investigate, negotiate and agree the conclusion of insurance and other claims on behalf of insurers and policyholders. The Institute is recognised as a leading international authority on insurance claims issues. The CILA created special interest groups in 2005 covering 11 specialist claims areas. Securities and investment The Chartered Institute for Securities & Investment (CISI) is the largest professional body for those working in the securities and investment industry in the UK and in a growing number of major financial centres round the world. Formed in 1992 by London Stock Exchange practitioners, the CISI has over 16,000 qualified members in 89 countries, as well as over 20,000 student members. As the main examining body for the industry, the CISI set almost 40,000 examinations in 49 countries, covering a range of vocational qualifications. It has a strong regional presence with 15 branches in the UK and a fast-growing presence overseas served by offices in Dubai, Mumbai, Shanghai and Singapore. CFA Society of the UK (CFA UK) is an independent organisation with over 9,000 members and is one of the largest member societies of the CFA Institute. CFA members work across the investment profession typically as portfolio managers and research analysts. The main purpose of CFA UK is to promote the development of the investment profession in the UK through the highest standards of ethical behaviour and the provision of education, professional development, information, career support and advocacy on behalf of its members. The Pensions Management Institute (PMI) The PMI is the professional body for its 5,000 members working in the field of pensions and employee benefits. The PMI establishes, maintains and improves professional standards in every area of pension scheme management, consultancy and trusteeship. Shipbroking The Institute of Chartered Shipbrokers is the only internationally recognised professional body representing shipbrokers, ship managers and agents throughout the world. With 23 branches in key shipping areas, 3,500 individuals and 120 company members, ICS is committed to maintaining the highest professional standards across the shipping industry. Shipbrokers arrange the chartering of cargo and tankers as well as the sale and purchase of ships. 2. institutions representing professional services Institutions cover key professions related to financial services, including accountancy, actuaries, legal services, dispute resolution, surveying, corporate finance, tax, risk management, credit management and compliance. Chartered accounting institutes There are six chartered accounting institutes operating in the UK with a substantial international membership: -
The The The The The The
Institute of Chartered Accountants in England and Wales (ICAEW) Institute of Chartered Accountants of Scotland (ICAS) Institute of Chartered Accountants in Ireland (ICAI) Association of Chartered Certified Accountants (ACCA) Chartered Institute of Management Accountants (CIMA) Chartered Institute of Public Finance and Accountancy (CIPFA)
Each of these institutes undertakes a range of professional activities
Chart 3 Accounting institutes sectoral employment % share of membership, end-2009 Public practice
Retired Other Public sector
Industry & commerce
Source: FRC Professional Oversight Board
Financial Services Education & Training 2010
including enhancing the value of qualifications and developing the highest standards of education and training, professional conduct and technical competence. Each is also engaged in technical work to further the theory and practice of accountancy. Between them, the bodies have over 383,000 members, including 107,000 based outside the UK and Republic of Ireland. They also have a further 414,000 students worldwide. ICAEW, ACCA and CIMA each have students and members in around 150 countries worldwide. ACCA, with half of its members overseas, has the most members globally, of the six institutes. The ICAEW has the largest number of members in the UK and in Europe. Over half the members (52%) of the six bodies are employed in industry and commerce, more than double the 23% in public practice, which includes audit. CIMA has the highest share of its members in industry and commerce 70%, followed by ACCA 56%. ICAEW, ICAS and ACCA each have between a quarter and a third of members in public practice. Very few members of CIPFA and CIMA are employed in public practice. CIPFA is the only professional accounting body to specialise in the public services, and the bulk of CIPFA members are employed in the public sector. Many CIMA and ACCA members also work in public practice The Association of International Accountants (AIA), founded in the UK in 1928, has promoted the concept of international accounting to create a global network of accountants in over 85 countries worldwide. AIA exams are based on International Financial Reporting and International Auditing Standards, complemented by a range of variant papers applicable to local tax and company law in key jurisdictions. The AIA professional qualification is currently recognised in over 30 countries worldwide. The Association has 4,700 members of which 3,100 are based overseas. Other bodies providing accountancy and related services are included in the side panel. Chartered Institute of Internal Auditors was launched on 1 October 2010. Previously the Institute of Internal Auditors, it focuses exclusively on internal auditing, having led the profession of internal auditing for over 60 years. The Law Society of England and Wales is the professional body representing solicitors in England and Wales. It works to improve the quality of services provided by solicitors by maintaining and enhancing high standards of training, professional development and practice. The Law Society also negotiates with and lobbies the profession's regulators, government and others. The Law Society of Scotland is the governing body for Scottish solicitors. It promotes excellence across the solicitor professions through representation, support and regulation of its members. The Law Society of Scotland also helps to shape the law for the benefit of both the public and the profession. The General Council of the Bar (known as the Bar Council) was founded in 1894 to represent the interests of barristers in England and Wales. As the governing body for the Bar its role is to promote and improve the services and functions of the Bar, and to represent the interests of the Bar on all matters relating to the profession. Faculty of Advocates Scottish Bar The Faculty of Advocates is a body of
Other UK-based accounting bodies The Association of Accounting Technicians (AAT), with over 47,000 members worldwide, offers practical training and qualifications to develop skills and knowledge of technical accounting skills. It was set up in 1980 and is supported and sponsored by four of the chartered accounting institutes: CIPFA, ICAEW, CIMA & ICAS. Institute of Financial Accountants (IFA) was established in 1916 and is the oldest body of non Chartered Accountants in the world. It represents 6,500 members in more than 80 countries, providing qualifications for those aspiring to work in financial management and accountancy and continuous professional development for qualified Financial Accountants. International Association of Book-keepers (IAB), founded in 1973, is a UK and international professional body for those providing bookkeeping and related accounting services to small businesses. It also provides essential business skills for those starting or developing a small business. Over the past decade it has broadened its focus from being solely a professional and examining body for bookkeepers. The Institute of Certified Bookkeepers (ICB) is an international bookkeeping institute. It promotes and maintains the standards of bookkeeping as a profession, through the establishment of a series of relevant qualifications and the award of grades of membership that recognise academic attainment, working experience and competence.
Financial Services Education & Training 2010
independent lawyers who are admitted to practise as Advocates before the Courts of Scotland. The Actuarial Profession represents the interests of The Institute and Faculty of Actuaries which came into being on 1 August 2010, as a result of a merger of The Institute of Actuaries in England and Wales and The Faculty of Actuaries in Scotland. Actuaries give commercial, financial and prudential advice on the management of assets and liabilities - especially where long term management and planning are critical factors. The Actuarial Profession regulates members and cooperates with government, business and regulators. It supports the development of the profession worldwide. The Chartered Institute of Arbitrators (CIArb) CIArb is the world’s leading organisation for the promotion and facilitation of all forms of dispute resolution. It is a registered charity with around 11,800 members, over half of whom are outside the UK spread across 100 countries worldwide. CIArb provides training to the highest educational standards and members are supported by robust professional codes. The Institute is an international resource centre for practitioners, professional advisers, policy makers and those in business concerned with the cost effective and early settlement of disputes. A total of 4,659 disputes in 20 business sectors were referred to CIArb for resolution in 2009. The Royal Institute of Chartered Surveyors (RICS) is the leading organisation of its kind in the world for professionals in property, land, construction and associated environmental issues. It maintains the highest standards of education, practical training and lifelong learning and regulates the profession through ethical principles and a regulatory framework that dovetails with modern business life. RICS provides a robust framework of protection and redress for clients through strict regulation of professionals. It undertakes research and advises on property related issues. RICS has around 104,000 members in some 140 countries worldwide, with 19,500 based in other countries. It accredits over 600 degree courses at leading universities worldwide. The Association of Corporate Treasurers (ACT) is the leading professional body for international treasury providing the wides scope of benchmark qualifications for 3,600 finance professionals working in treasury, risk and corporate finance. The ACT brings together practitioners, technical experts and educators in a range of disciplines that underpin the financial security of an organisation. The ACT also works in partnership with four of the chartered accounting institutes to offer a fast tract programme for qualified accountants who wish to gain a diploma in Treasury. The Chartered Institute of Taxation (CIOT), established in 1930, is the leading UK professional body concerned solely with taxation, dealing with all aspects of direct and indirect taxation. The CIOT, with 15,000 members, promotes education in the administration and practice of taxation, with the aim of achieving a more efficient tax system. The Institute of Credit Management (ICM) is the largest credit management organisation in Europe. Its 8,700 members hold appointments throughout industry and commerce in trade, consumer and export credit as well as in related activities such as credit reporting, credit insurance and insolvency practice. ICM emphasises the role of credit management in improved marketing, profitability and cash flow.
Financial Services Education & Training 2010
International Compliance Association (ICA) ICA is the leading global provider of professional certificated qualifications and training in anti money laundering, compliance and fraud/financial crime prevention. For beginners and experienced practitioners alike, the ICA certificate and diploma qualifications are designed to increase knowledge, improve skills and enhance understanding. ii. UnivErSiTiES,
bUSinESS SChOOlS and FUrThEr EdUCaTiOn
Between 2000/01 and 2006/07, the number of international students studying in the UK rose by 52% to reach 351,000. There are some 20 universities with over 5,000 international students, with the largest concentrations being at Manchester, Nottingham, University College London and Warwick. There is a broad multinational spread of students coming to the UK, with the largest increases from new developing markets in Asia (particularly China and India) and Africa as well as more recently from Eastern Europe (Chart 4 & Table 1). Universities, business schools and further education establishments around the UK offer a variety of courses up to undergraduate and postgraduate degree level that are of direct relevance to the financial sector and attract many international students. Such courses, shown in Chart 2, include economics, business studies, computer science, mathematics, finance, accounting and management studies. These courses have been attracting a higher than average share of international students: amongst economics students 38% were from overseas, finance and accounting 35%, business and management studies 28%, computer science 20% and mathematical sciences 18%. All these shares are higher than the 15% share of overseas students engaged in all UK degrees. Universities that attract the most international students are listed in Table 4. Universities have a key role in serving the financial and professional services in their own centre or region. Universities in London are closely linked with London as a global financial centre while universities around the UK support regional financial centres elsewhere in the UK, such as Manchester, Leeds and Edinburgh. Some universities have business schools or faculties that specialise in key aspects of financial services. These include the Centre for Risk and Insurance Studies (CRIS) within Nottingham University’s Business School and the ICMA Centre at Reading University that specialises in securities, investment and banking. Cass Business School in London has developed 20 specialised Master’s degrees in order to help graduates connect closely with the needs of business and employers. London Metropolitan University is the largest provider of training for financial services in the City of London. The National Skills Academy for Financial Services is an independent employer-led organisation launched in 2006 to tackle the skills challenges facing the sector. It brings together training providers in a national network that offers employers a guarantee of consistently high-quality training and development. The academy operates in London, East of England, North West, Yorkshire and Humber, South West, Midlands and the South East.
Chart 4 International students in UK tertiary education Number of foreign students in UK (lbars, left hand scale) 400
% share of all students in UK (line, right hand scale) 16
2001 2003 2005 2007 Years relate to academic year-end
Source: UK Higher Education Statistics Agencey
Table 4 UK universities with the largest intake of international students 2008/09 Manchester University Nottingham University University College London Warwick University London School of Economics Oxford University London Metropolitan University University of the Arts, London Leeds University Northumbria University Greenwich University Birmingham University Edinburgh University Cambridge University Westminster University Imperial College of Science City University Sheffield University Bedfordshire University King's College London
of which Total students international 8800 38190 7900 32925 7125 21210 7080 28435 6555 9575 6020 23760 5810 26380 5750 28790 5690 32370 5650 32665 5555 26120 5550 29185 5485 24525 5430 22820 5420 23160 5385 14150 5345 21725 5295 24715 5165 17280 4875 22275
Source: UK Higher Education Statistics Agency
TheCityUK iii. OThEr
Financial Services Education & Training 2010
1. UK national & regional partners promoting financial services The national and regional organisations established to promote financial services in their part of the UK have development of education and skills as a key part of their remit. These organisations, listed in the side panel, work closely with universities and other local education and training providers. 2. Exchanges Each of the exchanges operating in the UK offers a range of structured courses, seminars and in-house training related to the markets in which they operate. NYSE Liffe In conjunction with K2 London Ltd and Derivatives & Capital Market Education Ltd, NYSE Liffe offers education courses covering commodity, equity and fixed income derivatives, and the capital markets in general. Courses are aimed at a wide range of individuals: employees of investment banks, security houses and funds as well as proprietary traders and asset managers – and indeed, any user of financial instruments and participant in the markets. They are designed to deliver the relevant skills and knowledge that can then be applied in the real world, with extensive use of real market examples and case studies. ICE Education runs courses in its dedicated Education Centre in London that promote market awareness of hedging, supply trading, speculative trading and investment. Courses are designed for industry participants exposed to the fluctuations in energy prices: such participants include energy producers, suppliers, distributors, end-users and investors. Courses cover energy derivatives; physical markets for oil, gas and power; compliance; and tailored in-house training. The London Metal Exchange (LME) runs courses that provide an in-depth understanding of the working of the exchange and how its contracts can protect and add value to business. They are aimed at all those involved in the non-ferrous metals, steel and plastics industries who require an understanding of the pricing of their products and how to minimise the effects of volatile prices on their business. The seminars give an understanding of pricing, hedging, delivery and market processes. London Stock Exchange The Academy LSEG was established in 2009 following the merger of the training centres of the LSE and Borsa Italiana. The aim is to interpret the evolution of international financial markets by sharing views and expertise with market practitioners. The programmes offered by the Academy represent an opportunity to develop financial, legal, strategic, organisational and managerial skills. Course topics include trading on the LSE, equity markets, bond markets, corporate governance, investor relations, UK listing and disclosure rules and fraud prevention and detection. 3. Specialist training and awarding firms A number of firms supply specialist training and accreditation to professionals in the financial services industries, including those in the side panel. 4. Other organisations providing specialist training and development services The College of Law of England & Wales is the UK’s largest and longest established law school. With several thousand students (a large number of
Table 5 Countries of origin of international students in UK tertiary education Thousands, academic year-end 2007 2001 China 49.6 12.1 India 23.8 4.9 Ireland 16.3 13.5 Nigeria 11.1 2.7 US 16.0 9.4 Germany 14.0 11.4 France 13.1 10.0 Malaysia 11.8 10.0 Greece 16.1 31.2 Cyprus 8.7 4.0 Pakistan 9.3 2.2 Hong Kong 9.6 8.3 Poland 6.8 0.6 Italy 6.0 5.4 Spain 6.4 5.9 Taiwan 6.8 4.5 Other 126.2 94.9 Total 351.5 230.9
2008 45.4 25.9 15.3 11.8 13.9 13.6 12.7 11.7 12.6 9.6 9.3 9.7 8.6 5.6 5.7 5.6 124.7 341.8
2009 47.0 34.1 15.4 14.4 14.3 14.1 13.1 12.7 12.0 10.4 9.6 9.6 9.1 6.0 5.7 5.2 136.2 369.0
Source: UK Higher Education Statistics Agency
Specialist training and awarding firms BPP is a leading company with the expertise and experience to train and develop business professionals. BPP has a Law School and a Business School, and is the only private sector company to have the power to award university degrees in the UK. Professionals gaining their qualifications through BPP include accountants, tax practitioners, lawyers, actuaries, marketing practitioners and financial services professionals. Kaplan Financial is a leading provider of professional qualifications and business training in the UK. It prepares over 48,000 students a year for professional accountancy exams, tax qualification programmes, training for investment professionals, and specialist corporate and government training. Kaplan Financial is part of Kaplan Inc. a leading global provider of education and training services. Chisholm Roth Group has delivered customised training programmes for investment banking professionals since 1989. Its goal is to deliver consistently the highest standards in capital markets, credit and derivatives training. EDI is an accredited awarding body and leading international education company offering 370 vocational qualifications both within the UK and internationally. EDI quality assures 400 training programmes and oer 1,600 training organisations and further education colleges are registered to offer EDI qualifications. In addition to these firms, there are many others supplying financial services training.
Financial Services Education & Training 2010
whom are non-UK nationals) and exclusive relationships with a number of the world's largest law firms, it specialises in training and professional development for trainee and qualified lawyers. The College offers programmes for both law and non-law graduates and awards Bachelor and Master of Law degrees. An internationally recognised LLM in International Legal Practice has been developed in partnership with the International Bar Association. The College operates from several sites across England and in 2006 opened the UK’s largest corporate-specific law school in the City of London. Centre for Effective Dispute Resolution (CEDR) CEDR is an internationally recognised non-profit organisation dedicated to the development and promotion of mediation and other cost-effective dispute resolution and prevention techniques. Given the increasing importance placed on using alternative ways to resolve disputes CEDR works at both a UK and international level informing the development of ADR within civil justice systems, business, public and legal sectors. CEDR Solve, which has handled over 16,000 mediation referrals during its 20-year history, provides practical training solutions for business people and professionals engaged in mediation and other forms of dispute resolution. In 2009, CEDR trained around 550 mediators, of whom over 350 were outside the UK. Crown Agents is an international development company committed to global development and growth. Its expertise in public financial management helps governments raise revenue, manage debt and plan expenditure more effectively. Through technical assistance, consultancy and training Crown Agents helps to reduce poverty, improve health and increase prosperity. Partnerships are established with multilateral agencies such as the World Bank, European Commission, United Nations agencies and regional development banks, as well as bilateral donors such as the UK, Japanese and US governments. 5. industry associations A number of industry associations offer education services that are normally orientated to professionals in the financial sector: British Bankers Association (BBA) The BBA delivers an extensive programme of events for the banking and financial services industry in the form of conferences, seminars, briefings and training workshops, which are developed to meet the changing needs of the industry. Futures and Options Association (FOA) is an industry association for firms and institutions carrying on business in derivatives. FOA training courses currently include electronic order routing systems, risk of financial transactions and training for exchange professionals. International Capital Market Association (ICMA) is the self-regulatory organisation and trade association representing financial institutions active in global capital markets. The ICMA’s executive education services are under the academic supervision of the ICMA Centre and its faculty at the University of Reading. The ICMA Centre, established in 1991, offers a number of masters’ degrees as well as a range of programmes for market professionals. Topics of specialist programmes include commodities, credit default swaps, derivatives operations, global custody and securitisation. The Investment Management Association (IMA) represents the UK fund
development of education & training key to promotion of financial services by national and regional partners in UK The national and regional organisations focused on developing and promoting financial services in their localities work closely with universities and other training providers: Birmingham Forward represents and promotes the city’s professional, financial and business services sector and works to create economic growth. Financial Leeds represents and supports financial and professional services and provides advice to businesses looking to expand or establish a presence in the Leeds city region. East of England International supports regional businesses operating in global markets and assists overseas-owned companies setting up or expanding in the UK. Invest Northern Ireland supports the financial services industry in Northern Ireland, building locally, competing globally. Scottish Financial Enterprise supports, represents and promotes Scotland’s financial services industry. International Business Wales is the trade and investment arm of the Welsh Assembly Government, helping companies through the process of locating or expanding into Wales. Professionaliverpool promotes Liverpool’s professional excellence and reputation as a financial centre and helps businesses develop national and international networks. Pro Manchester brings business opportunities from around the UK and the world to Manchester’s financial and professional services sector. UK Trade & Investment Team South East is a government organisation dedicated to helping companies in the South East achieve their full international business potential.
Financial Services Education & Training 2010
management industry. IMA works actively to develop higher standards of training and professional development in the UK investment management industry. It runs training courses, good practice workshops and seminars for its members, and supports regulators and government in raising their business awareness of investment management. It also works closely with the FSSC and awarding bodies in developing new qualifications.
SOUrCES This report includes information sourced from the websites of around 60 organisations involved in financial services education and training, including professional institutions, universities, specialist training firms, public sector organisations, and national and regional partners in the UK. These websites are too numerous to be listed here but more information about these organisations can be readily accessed through search engines. Other sources on financial services education and training include: british Council www.educationuk.org www.britishcouncil.org Financial Services Skills Council Productivity and change in UK financial services December 2007 www.fssc.org.uk OECd Education at a Glance 2010 www.oecd.org Professional Oversight board of the Financial reporting Council Key Facts and Trends in the Accountancy Profession June 2010 www.frc.org.uk/pob UK higher Education Statistics agency www.hesa.ac.uk
Financial Services Education & Training 2010 TheCityUK’s role in promoting UK expertise in education and training The need for the collective promotion of UK expertise in financial education and training was identified more than four years ago, with the formation of the Training, Education & Qualifications Group, now being taken forward by TheCityUK. This group is the first to coordinate work in financial services’ education and training. Sir David Howard a former Lord Mayor of the City of London, chairs the group, which consists of both public and private suppliers of training and qualifications. For more information on the work of TheCityUK’s Training, Education & Qualifications group contact: Wayne Evans, Head, International Group [email protected]
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+44 (0)20 7776 8979 TheCityUK, 65a Basinghall Street, EC2V 5DZ This report Dispute Resolution in London & the UK 2010 is one of a series featuring product expertise in London. All reports from TheCityUK can be downloaded at: www.TheCityUK.com © Copyright October 2010 TheCityUK is a new independent membership body, promoting the UK financial and related professional services industry. TheCityUK’s key areas of activity include: - Promoting the UK-based industry as a world leader offering unrivalled service and expertise to partners around the world. - Creating a partnership for a sustainable industry: demonstrating the industry’s role in enabling growth and prosperity in the wider UK economy. - Using research, insight, data and analysis to meet the needs of its members and to provide the evidence to support our promotional objectives.
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