Get excellent grades in CFA-Level-III test with these Exam dumps and test prep

Our Financial CFA-Level-III Exam dumps with Questions and Answers are precise of the CFA-Level-III actual test. A total pool of CFA-Level-III test prep is kept up with in an information base of inquiries. We add and update new Questions and Answers on the customary reasons for contenders to retain the most current substance.

Exam Code: CFA-Level-III Practice test 2022 by Killexams.com team
Chartered Financial Analyst Level III (CFA Level III)
Financial Chartered test Questions
Killexams : Financial Chartered test Questions - BingNews https://killexams.com/pass4sure/exam-detail/CFA-Level-III Search results Killexams : Financial Chartered test Questions - BingNews https://killexams.com/pass4sure/exam-detail/CFA-Level-III https://killexams.com/exam_list/Financial Killexams : What You Need to Know to Pass the CFA Exam No result found, try new keyword!The chartered financial analyst title is a coveted designation ... says practice problems are useful to help familiarize candidates with the test questions, and he used practice tests to help ... Thu, 26 May 2022 19:51:00 -0500 text/html https://money.usnews.com/financial-advisors/articles/what-you-need-to-know-to-pass-the-cfa-exam Killexams : What to Expect on the CFA Level I Exam

The Chartered Financial Analyst (CFA) designation is one of the most sought-after credentials for investment professionals. However, becoming a CFA charter holder is not for the fainthearted nor the uninterested. The journey to becoming a CFA charter holder is long, and it tests not only knowledge of the subject but also endurance, diligence, and will.

According to the CFA Institute, the current program is best described as a self-study, distance-learning program that takes a generalist approach to investment analysis, valuation, and portfolio management, and emphasizes the highest ethical and professional standards. 

The CFA program consists of three exams: the CFA Level I, Level II, and Level III. CFA candidates are required to pass each of these exams and must meet certain work requirements as set out by the CFA Institute. The CFA exams are also difficult to pass; in May 2022, the passing rate for the Level I test was just 38%, compared with an average Level I pass rate of 41% for the 1963-to-May 2022 period.

The curriculum for each of these three levels is designed to test a broad array of skills considered to be most relevant for investment professions. In this article, we will focus on the CFA Level I exam.

Key Takeaways

  • The Chartered Financial Analyst (CFA) designation is one of the most sought-after credentials for investment professionals.
  • The CFA program consists of three rigorous exams—CFA Level I, Level II, and Level III—that candidates must pass. In order to receive the CFA charter, candidates must also meet certain work requirements set out by CFA Institute.
  • The passing rate for the CFA Level I Exam, which consists of 180 multiple choice questions split between two 135-minute sessions, was 38% in May 2022, compared with an average Level 1 pass rate of 41% for the 1963-to-May 2022 period.
  • The CFA Level 1 test tests knowledge in 10 different sections, including ethical and professional standards, quantitative methods, economics, portfolio management, and asset classes.

CFA Level 1 test Structure

The test is a computer-based test split between two 135-minute sessions. The test consists of 180 multiple-choice questions: 90 questions in the first session and 90 questions in the second session. Candidates should allow approximately 90 seconds per question, depending on their knowledge of the topics.

All of the multiple-choice questions are free-standing (i.e., they are not dependent on each other). For each question, three possible choices are provided. The questions are crafted intelligently, such that the incorrect choices reflect common mistakes in calculation or logic. Candidates should aim to answer all questions, as there is no penalty for incorrect answers.

Additionally, it is essential to become comfortable with calculator functions, as these features will be needed to complete some of the questions.

Exam Curriculum

The test focuses on basic knowledge and comprehension of tools and concepts of investment valuation and portfolio management. The curriculum consists of 10 syllabu areas that cover key subjects including ethical and professional standards, investment tools, asset classes, and portfolio management and wealth planning.

The following table provides the approximate weights of these syllabu areas for the 2022 Level I exam.

2022 CFA Level I test courses and Weights
Topic Exam Weight
Ethical and Professional Standards 15-20%
Quantitative Methods 8-12%
Economics 8-12%
Financial Reporting and Analysis 13-17%
Corporate Issuers 8-12%
Portfolio Management 5-8%
Equity Investments 10-12%
Fixed Income 10-12%
Derivatives  5-8%
Alternative Investments 5-8%

Source: CFA Institute.

Ethics and professional standards

This section covers the code of ethics, professional standards, and the Global Investment Performance Standards (GIPS). There are approximately 27 to 36 questions on the subject, and the Institute itself takes this section very seriously. If scores are low or close to the minimum passing score on all other topics, then the score on this section could determine whether a candidate passes or fails. One advantage of studying ethics well is that it also helps with Level II and Level III test preparation.

Quantitative methods

While ethics is more scenario-oriented and easy to follow, the quantitative methods section could be intimidating for some students. A Ph.D. in mathematics is not necessary to do well in quantitative methods, but having a background in statistics will certainly be helpful. An 8%-to-12% weight means that candidates should expect anywhere from 15 to 22 questions on quantitative methods. The courses covered are geared toward providing knowledge of analytical tools and techniques that are essential for financial analysis and investment decision-making.

The key courses covered are the time value of money and discounted cash flow analysis, which form the basis for security and asset valuation; descriptive statistics that convey important data attributes, and characteristics of return distributions; and probability theory and its application to quantifying risk in investment decision making.

Economics

The economics section tests knowledge of basic micro and macroeconomic concepts. These include supply and demand analysis; various market structures such as oligopoly and monopoly; aggregate output, prices, and economic growth; and business cycles and their effect on economic activity. Economics comprises between 8% to 12% of the Level I exam.

Financial reporting and analysis

This is the second-largest section on the Level I exam, with a 13%-to-17% weight. Financial reporting and analysis have only a slightly lower weight for the Level II course, so it's important to spend enough time studying this area to build a solid foundation for subsequent exams.

Candidates will be asked to analyze and interpret primary financial statements (balance sheet, income statement, and cash flow statement), know the ratios, and many other advanced concepts such as revenue recognition, inventory analysis, long-term assets, and taxes.

Since the test is a global exam, it does not cover local accounting practices. The focus is more on widely accepted standards, such as U.S. GAAP and IFRS.

Corporate issuers

After financial reporting and analysis is the section on corporate finance, which has an 8%-to-12% weight in the Level I exam. It provides an introduction to corporate governance, as well as investing and financing decisions. This subject area also highlights the growing impact of environmental and social considerations in investing. Key courses include capital budgeting, cost of capital, leverage, and working capital management.

Portfolio management

The Level I test only introduces the basics of portfolio management. The important concepts are the Modern Portfolio Theory and the Capital Asset Pricing Model. There are between 9 and 15 questions in this section, which acts as preparation for Levels II and III, where the focus is more on the application of knowledge on portfolio management.

Equity investments

The section on equities covers equity markets and instruments, as well as tools and techniques for valuing companies. Candidates should pay close attention to this section because it lays the foundation for further study in Levels II and III. Approximately 10% to 12% of the questions on the Level I test are on equities, and the majority of the questions are focused on valuing and analyzing companies.

Fixed income

After equities, the test next deals with fixed-income markets and their instruments. Candidates are required to understand the characteristics of various fixed-income securities and how to price them. Some important concepts are the yield measures and duration and convexity. This section also discusses structured products, such as mortgage-backed securities and collateralized mortgage obligations, among others. Questions on fixed income comprise 10% to 12% of the exam.

Derivatives

Similar to portfolio management, derivatives are only introduced in Level I. Candidates will be tested on the basics of futures, forwards, swaps, options, and hedging techniques using these derivatives. Similar to portfolio management, this section only has a 5%-to-8% weight in the Level I exam, which equates to between 9 and 15 questions.

Alternative investments

This section focuses on alternative investments including real estate, private equity, hedge funds, infrastructure, and commodities. The Level I curriculum for alternative investments is of an introductory nature, with a 5%-to-8% test weight, so expect between 9 and 15 questions. Given the growing importance of this asset class in exact periods, and the fact that it has a slightly higher weight in Levels II and III, candidates should treat this section seriously.

Test-Taking Tips on test Day

All CFA exams are now administered through computer-based testing at proctored test centers in over 400 locations globally. The test centers have tight security measures in place, and each center closely monitors candidates to detect any form of cheating. The CFA Institute offers the following test-taking tips for CFA Level I test Day:

  • Be comfortable with your calculator's features, and ensure you know how to use them to address the learning outcome statements. Permitted calculators are either the Texas Instruments BA II Plus or the Hewlett Packard 12C.
  • Exam questions referring to financial reporting and analysis are based on IFRS unless otherwise specified. If U.S. GAAP is used, this will be stated in the question.
  • Answer all questions, since there is no penalty for incorrect answers.
  • While there is no dress code for the exams, dress in layered clothing for comfort.

Is there a break between Session 1 and Session 2 of the CFA Level 1 exam?

There is an optional break of 30 minutes between Session 1 and Session 2.

How much study time do I need for the Level I exam?

According to CFA Institute, the average successful candidate reported spending 303 hours studying for the Level I test offered in June 2019.

If I do not pass the CFA Level I Exam, how long do I have to wait before I can retake it?

Beginning in 2021, every candidate who does not pass their test will have to wait for a minimum of six months to retake it.

The Bottom Line

Overall, the CFA Level I test is well balanced, with a wide spectrum of topics. Some courses may require proportionally more time to study than others; however, what's important is to create a study plan and stay with it.

Wed, 24 Nov 2021 01:33:00 -0600 en text/html https://www.investopedia.com/articles/professionaleducation/12/what-to-expect-on-the-cfa-level-1-exam.asp
Killexams : CFA vs. Series 7: What’s the Difference?

CFA vs. Series 7: An Overview

The Chartered Financial Analyst (CFA) designation is a professional credential offered by the CFA Institute. It is a globally recognized and respected credential held by more than 167,000 professionals across 165 countries, and it is regarded as the gold standard for the investment industry.

Series 7 colloquially refers to the license that enables the holder to sell all types of securities except commodities and futures. Administered by the Financial Industry Regulatory Authority (FINRA), the Series 7 exam—also known as the General Securities Representative Qualification Examination (GS)—essentially assesses the competency of an entry-level registered representative to perform their job as a general securities representative, or a stockbroker in common parlance. To obtain the General Securities Representative registration, candidates must pass the Securities Industry Essentials (SIE) test and the Series 7 exam.

Comparing the CFA program with the Series 7 is an apples-to-oranges comparison. The CFA program is a rigorous, three-level advanced program, while Series 7 exams are meant for entry-level registered representatives. Thus, it would generally take much more time to study for the three test levels of the CFA program—an average of 300+ hours is recommended for each test level—than for the Series 7. The CFA exams are also notoriously difficult to pass; the average pass rate of all three CFA levels from 1963 to 2021 is 45%. FINRA does not publish pass rates for the Series 7 exams, but anecdotal evidence suggests that it is around 65% to 70%—significantly higher than the CFA pass rates, but certainly a challenging test to pass for an unprepared candidate.

While CFA and Series 7 credentials may take you down different career paths in the financial industry, many financial industry professionals possess both. Series 7 holders are licensed to sell most securities in their capacity as financial advisors and brokers. But quite often, being involved in the financial industry sparks an interest for more in-depth learning in areas such as investment analysis and portfolio management, as well as the desire to garner a career advantage through an advanced credential like the CFA. Note that the CFA is not mandated by any regulatory agency for a financial industry position. The CFA is primarily a certification, comparable to a master’s degree, that increases the credibility of investment professionals and improves career advancement prospects.

Key Takeaways

  • Comparing the Chartered Financial Analyst (CFA) program with the Series 7 is an apples-to-oranges comparison. The CFA program is a rigorous, three-level advanced program, while the Series 7 exams are meant for entry-level registered representatives.
  • The Series 7 is managed by the Financial Industry Regulatory Authority (FINRA) and required for individuals buying and selling a specific list of securities in their job.
  • The CFA is managed by the CFA Institute and is usually viewed as a high-level accreditation similar to a master’s degree.
  • CFA charterholders typically work primarily within the areas of investment portfolio analysis, investment advisory, securities analysis, investment banking, economics, and academia.
  • While CFA and Series 7 credentials may take you down different career paths in the financial industry, many financial industry professionals possess both.

CFA Charter

The CFA Institute issues the CFA charter to people who can pass its rigorous requirements. People sometimes compare the CFA study program to obtaining a master’s of business administration (MBA) except that it is much more specialized in the area of investments.

To enroll in the CFA Program and register for the Level I exam, candidates must have an international travel passport and meet one of the following entrance requirements: have a bachelor’s degree or be a final-year student, or have a combination of 4,000 hours of work experience and/or at least three sequential years of higher education.

To obtain a CFA, an individual must meet all of the requirements set forth by the CFA Institute, including:

  • Pass all three levels of the CFA exams.
  • Achieve qualified work experience—at least 4,000 hours of experience, completed in a minimum of 36 months.
  • Submit two to three professional references.
  • Apply to become a regular member of the CFA Institute, which requires an affiliation with a local chapter.

A breakdown of the CFA program curriculum can be found on the CFA Institute website.

CFA holders feel that the program’s most challenging facet is fulfilling the educational requirement. Candidates must pass three exams of progressive difficulty. According to the CFA Institute, on average, a typical candidate takes four to five years to pass all three exams. Successful candidates report spending more than 300 hours studying for each level, ranging from 303 hours for the CFA Level I test to 328 hours for the CFA Level II test and 344 hours for the CFA Level III exam. Most people may find it difficult to make that kind of time commitment.

And despite the amount of time spent studying, there is no certain of success. Pass rates fell to record lows for all three levels of the CFA exams in 2021, as the global COVID-19 pandemic likely affected candidates’ test preparation efforts due to cancellations and deferrals.

All CFA exams are now administered through computer-based testing, as opposed to the in-person testing at examination centers that was the norm earlier. Level I exams are held four times per year, while Level II and Level III exams are held twice per year.

The CFA charter is considered to be one of the most specialized investment analysis certifications in the financial industry. A CFA can significantly help an individual’s career advancement, primarily in the areas of:

  • Investment management
  • Portfolio analysis
  • Buy-side trading
  • Sell-side research analysis
  • Investment banking
  • Academia
  • Economics
  • Financial advising

According to CFA Institute, the top five roles for CFA charterholders globally are:

  • Portfolio manager
  • Research analyst
  • Chief level executive
  • Consultant
  • Risk manager

Series 7

The primary difference between the Series 7 and the CFA is that one is a license, while the other is a certification. A Series 7 license is necessary for individuals whose job involves the solicitation, purchase, or sale of securities—including stocks, bonds, mutual funds, exchange-traded funds, options, direct participation programs, and variable contracts. As of October 2018, passing the Series 7 test is not the only requirement for new FINRA licensees. New licensing candidates must also pass the Securities Industry Essentials (SIE) exam.

The SIE is a 75-question, multiple choice exam. Candidates have one hour and 45 minutes to take the test. A passing score of 70 is required. The SIE test was designed by FINRA to ensure that FINRA licensees demonstrate a thorough understanding of basic securities industry knowledge.

The Series 7 test is managed by FINRA. It has 125 questions covering four main job functions of a Series 7 licensed representative. The test must be completed in 225 minutes.

The following are the four main job functions:

  • Function 1: Seeks business for the broker-dealer through customers and potential customers
  • Function 2: Opens accounts after obtaining and evaluating customers’ financial profile and investment objectives
  • Function 3: Provides customers with information about investments, makes suitable recommendations, transfers assets, and maintains appropriate records
  • Function 4: Obtains and verifies customers’ purchase and sales instructions and agreements, and processes, completes, and confirms transactions

Most Series 7 test preparation courses suggest 80 to 100 hours of study time, including live practice exams and at least 1,000 practice questions. Unlike the CFA exams, which cover case studies, financial and investment theories, and quantitative math, the Series 7 test involves memorizing U.S. Securities and Exchange Commission (SEC) regulations and some basic math. A 72% score is necessary to pass the exam.

To fully obtain the Series 7 license, candidates must:

  • Be associated with and sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm
  • Register with FINRA
  • Pass the SIE exam
  • Comply with eligibility under FINRA Rule 1220(b)(2)

Key Differences

The Series 7 license and CFA certification are generally acquired for different careers within the financial industry, although many financial industry professionals possess both. Series 7 licensed representatives tend to work in financial market sales, often as a stockbroker or financial advisor. Keep in mind that a Series 7 is required to solicit, purchase, and sell stocks, bonds, mutual funds, options, direct participation programs, and variable contracts in any financial position. The Series 7 license can expire if a representative is not employed with a FINRA-registered organization for two years.

Although some Series 7 licensed investment advisors also hold a CFA charter, most careers requiring a CFA don’t require a Series 7 license. Unlike the Series 7, the CFA certification does not expire. As such, it is a certification that can be used in marketing your personal skills throughout your career. With the CFA charter and membership with the CFA Institute, charterholders have the opportunity to further their education annually through continuing education courses. In general, the CFA can be a good pathway to a higher-paying job with greater latitude for responsibility and management authority.

In terms of curriculum and difficulty, there is a big difference between the Series 7 and the CFA. The Series 7 license covers basic securities market terminology, products, and job functions through both the SIE test and the Series 7 exam. The CFA curriculum is much more quantitative and theoretical, covering the areas of quantitative analysis, securities valuation, economics, financial reporting, accounting, ethics, and more.

What Are the Main Areas Where Chartered Financial Analyst (CFA) Charterholders Work?

According to the CFA Institute, the top five practice types for Chartered Financial Analyst (CFA) charterholders are equities, fixed income, private equity, derivatives, and real estate.

Do I Need to Have the CFA Designation if I am Interested in a Career in Investment Research?

It is not mandatory to have the CFA designation if you are interested in a career in investment research, but it would certainly help. The CFA program imparts a wealth of knowledge that is very useful in investment research and analysis, and many research analysts around the world are CFA charterholders.

I Would like an Entry-Level Position in the Financial Services Industry. Should I Study for the Series 7 or the CFA?

The Series 7 exams are specifically geared for entry-level representatives, so that would be the best choice. At a later point in time, once you have some industry experience under your belt, you can decide if the CFA charter is something that you wish to pursue.

The Bottom Line

Series 7 refers to the license that enables the holder to sell all types of securities except commodities and futures. Meanwhile, the CFA is primarily a certification, comparable to a master’s degree, that increases the credibility of investment professionals and improves career advancement prospects. The Series 7 license covers basic securities market terminology, products, and job functions, while the CFA curriculum is much more quantitative and theoretical.

Thu, 31 Mar 2022 17:19:00 -0500 en text/html https://www.investopedia.com/articles/financial-advisors/022216/cfa-vs-series-7-which-easier.asp
Killexams : CFA vs. CFP: The Difference Explained No result found, try new keyword!The Financial Industry Regulatory Authority ... CFP applicants must pass the CFP exam. This is a 170 multiple-choice question test taken in two three-hour sessions. The pass rate for the CFP ... Mon, 11 Jul 2022 02:15:00 -0500 text/html https://money.usnews.com/investing/investing-101/articles/cfa-vs-cfp-what-they-are-and-how-they-differ Killexams : MSc Accounting and Finance

Overview

Degree awarded
MSc
Duration
12 months full-time.
Entry requirements

We require a UK bachelor degree with first or upper second class honours or the overseas equivalent, with excellent results in accounting and finance subjects. 

When assessing your academic record, we take into account your grade average, position in class and the standing of the institution where you studied your qualification. 

You need to have studied or be studying a degree in accounting or finance. We can also consider exceptional candidates with degrees in economics or mathematics.  You must have taken a significant number of courses in accounting and finance during your degree, and a major or specialisation in accounting and/or finance in your final year, with top level results in final year accounting and finance subjects.  You must also demonstrate a solid background in quantitative skills, econometrics or maths.

We can consider applicants studying degrees in business administration or commerce who can demonstrate a very strong background in accounting and finance throughout their degree and a final year major or specialisation in accounting or finance, and strong quantitative skills. Due to competition for places, we deliver preference to applicants with a bachelor degree in accounting or finance.

We highly recommend GMAT or GRE for applications to all our accounting and finance related programmes. We anticipate a well-balanced score with a strong performance in the quantitative sections. 

Full entry requirements

How to apply

Apply online

NOTE: There is a non-refundable application fee of £60, which you can pay using our secure online payment facility . We cannot consider applications until you have paid the application fee.

Applications for this programme are now closed for September 2022 entry. 

Course options

Full-time Part-time Full-time distance learning Part-time distance learning
MSc Y N N N

Course description

Take your skills and knowledge to the next level with the best accounting and finance group in the world. Whether you want to further your professional career, or go on to study for a PhD , this course gives you the qualification you need to succeed.

A career in accounting, financial services or related sectors of the economy requires a high level of understanding of both the theory and practice of accounting and finance. This course is designed to deliver you a broad-based understanding of the core subject areas with an emphasis on empirical research methods and on accounting and finance practice.

Our wide range of modules allows you to specialise and during the course you have the chance to build on your growing knowledge and expertise by completing a dissertation on a research area of your choice. This, coupled with the support you get from our staff, ensures a first class learning experience. 

The MSc Accounting and Finance is recognised by the Economic and Social Research Council as postgraduate preparation for a PhD. It holds the award of partnership status from the CFA Institute, the global association for investment professionals. It also allows you to join the Chartered Institute of Management Accountants (CIMA), the global professional management accounting body.

CFA training

We're pleased to announce that we have teamed up with Kaplan Schweser to facilitate student preparation for the CFA exams. Students attending our finance-related Masters - MSc Accounting , MSc Accounting and Finance, MSc Finance and MSc Quantitative Finance - who perform well in Semester one and show a strong interest in CFA, will get free access to Kaplan's online training materials for CFA Part One.

Kaplan is a global firm offering professional training and helping individuals and organisations obtain financial certifications and designations. They will support our students by giving them access to tuition material, online question banks and progress tests, as well as mock test runs. They will also offer tutor support and 1-2-1 sessions.

Students enrol in the CFA Program to build a strong foundation of advanced investment analysis and real-world portfolio management skills. Preparing for the Level I test is the first step toward earning the Chartered Financial Analyst ® (CFA) credential, the most respected and recognised investment designation in the world.

CIMA accreditation

The MSc Accounting and Finance is accredited by the Chartered Institute of Management Accountants (CIMA), the global professional management accounting body based in the UK. On successful completion of the course, you will be able to join CIMA though an accelerated route that allows you to get up to 11 test exemptions towards CIMA's certificate, operational and management levels. 

Trading BootCamp Week

Each year, Alliance MBS runs a five-day Trading BootCamp for all current students studying MSc Accounting, MSc Accounting and Finance, MSc Finance and MSc Quantitative Finance. These trading simulations provide students with experience of real world trading and the opportunity to engage with contemporary financial markets, enabling them to apply their classroom theory in practice.

To deliver the Trading BootCamp, the School has teamed up with Amplify Trading to provide those looking to enter the financial industry with a crucial skill-set. Amplify Trading are a global financial trading and training firm, which offers training to some of the world's largest financial institutions, such as HSBC, Citigroup and Deutsche Bank. They have developed specialist software that enables students to experience a live trading floor and two experienced traders will deliver the week-long training.

Each day there will be four hours of classes in the morning followed by four hours of trading practice in the afternoon. Engaging in live breaking news, economic data and geo-political events, students will be able to apply their understanding, technical expertise and risk management practises in trading different asset classes.

This is a fantastic opportunity for accounting and finance students at Alliance MBS and is another way in which we prepare students for successful careers after graduation.

The Finance Zone  

The Finance Zone in Alliance Manchester Business School gives you access to one of the UK's most comprehensive collections of specialist financial and business databases that are used by top researchers around the world. These include Bloomberg, Datastream, Thomson ONE, Compustat, WRDS, Capital IQ and many more. Read more about the specialist financial and business databases >>

Open days

Meet us at virtual events

Meet us at a virtual event to find out more about our master's degree courses.

Meet us >>

Fees

For entry in the academic year beginning September 2022, the tuition fees are as follows:

  • MSc (full-time)
    UK students (per annum): £20,000
    International, including EU, students (per annum): £32,000

Further information for EU students can be found on our dedicated EU page.

The fees quoted above will be fully inclusive for the course tuition, administration and computational costs during your studies.

Refund Policy

Due to the competition for places and limited availability, our courses require a deposit of £1000 to cover non-recoverable costs and secure your place. The deposit will be deducted from your tuition fees when you register on the course.

The deposit is non-refundable, except in the following situations:

  • you fail to meet the conditions of your offer (see below for further information); and/or
  • you are refused a visa or entry clearance to enter the UK (proof must be submitted)

If an offer has been made specifying an English Language condition which you do not meet, the Admissions Team will require the official certificate of an English Language test taken after the date of offer as evidence that you have attempted to meet your offer conditions for a refund to be approved. The English Language test certificate provided with your application documents will not be accepted as proof that you have attempted to meet your offer conditions as such a certificate will predate the offer.

If an offer has been made specifying an academic condition, the Admissions Team will require the official university documentation showing that you have not met this academic condition from the institution at which you have studied, as evidence for a refund to be approved.

The Admissions Team reserves the right to refuse to refund of any deposit that does not meet with the requirements outlined above.

Policy on additional costs

All students should normally be able to complete their programme of study without incurring additional study costs over and above the tuition fee for that programme. Any unavoidable additional compulsory costs totalling more than 1% of the annual home undergraduate fee per annum, regardless of whether the programme in question is undergraduate or postgraduate taught, will be made clear to you at the point of application. Further information can be found in the University's Policy on additional costs incurred by students on undergraduate and postgraduate taught programmes (PDF document, 91KB).

Contact us for further information about the new Accounting and Finance scholarship for UK/EU students and other  scholarships available .

Courses in related subject areas

Use the links below to view lists of courses in related subject areas.

Entry requirements

Academic entry qualification overview

We require a UK bachelor degree with first or upper second class honours or the overseas equivalent, with excellent results in accounting and finance subjects. 

When assessing your academic record, we take into account your grade average, position in class and the standing of the institution where you studied your qualification. 

You need to have studied or be studying a degree in accounting or finance. We can also consider exceptional candidates with degrees in economics or mathematics.  You must have taken a significant number of courses in accounting and finance during your degree, and a major or specialisation in accounting and/or finance in your final year, with top level results in final year accounting and finance subjects.  You must also demonstrate a solid background in quantitative skills, econometrics or maths.

We can consider applicants studying degrees in business administration or commerce who can demonstrate a very strong background in accounting and finance throughout their degree and a final year major or specialisation in accounting or finance, and strong quantitative skills. Due to competition for places, we deliver preference to applicants with a bachelor degree in accounting or finance.

We highly recommend GMAT or GRE for applications to all our accounting and finance related programmes. We anticipate a well-balanced score with a strong performance in the quantitative sections. 

English language

For the latest information on demonstrating your English proficiency for those whose first language is not English, please see our language requirements .

English language test validity

Some English Language test results are only valid for two years. Your English Language test report must be valid on the start date of the course.

Other international entry requirements

We accept a range of qualifications from different countries. For these and general requirements see entry requirements for your country .

Application and selection

How to apply

Apply online

NOTE: There is a non-refundable application fee of £60, which you can pay using our secure online payment facility . We cannot consider applications until you have paid the application fee.

Applications for this programme are now closed for September 2022 entry. 

Advice to applicants

Your statement of purpose should answer the specific questions outlined below.

  1. Please tell us your current overall average, the average for your accounting and/or finance major / specialization, and if possible your position in class.
  2. Please list any other accounting and finance courses or qualifications you have taken in addition to your undergraduate degree.
  3. Please tell us why you are interested in the MSc Accounting and Finance course at Alliance MBS and how the course will impact on your future.
  4. It is very competitive to gain a place on this course.  Please tell us what makes you stand out as an exceptional applicant compared to others.

Please note:  there is a non-refundable application fee of £60, which you can pay using our secure online payment facility .  We cannot consider applications until you have paid the application fee.

How your application is considered

Applications cannot be processed without the following:

  • £60 non-refundable application fee payment
  • valid English language qualification
  • first and second year transcript (scanned copies are accepted at the time of application)
  • list of final year modules (where possible this should be included within the same document as your first and second year transcript)
  • statement of purpose (this is included as part of your application form, you do not need to email your statement of purpose directly to the Admissions Team)

Deferrals

To defer your offer to the following year, you must contact your admission officer to get a copy of the deferral form. You can only defer your offer for one year.

Re-applications

If you applied in the previous year and your application was not successful you may apply again. Your application will be considered against the standard course entry criteria for that year of entry. In your new application you should demonstrate how your application has improved. We may draw upon all information from your previous applications or any previous registrations at the University as a student when assessing your suitability for your chosen course.

Course details

Course description

Take your skills and knowledge to the next level with the best accounting and finance group in the world. Whether you want to further your professional career, or go on to study for a PhD , this course gives you the qualification you need to succeed.

A career in accounting, financial services or related sectors of the economy requires a high level of understanding of both the theory and practice of accounting and finance. This course is designed to deliver you a broad-based understanding of the core subject areas with an emphasis on empirical research methods and on accounting and finance practice.

Our wide range of modules allows you to specialise and during the course you have the chance to build on your growing knowledge and expertise by completing a dissertation on a research area of your choice. This, coupled with the support you get from our staff, ensures a first class learning experience. 

The MSc Accounting and Finance is recognised by the Economic and Social Research Council as postgraduate preparation for a PhD. It holds the award of partnership status from the CFA Institute, the global association for investment professionals. It also allows you to join the Chartered Institute of Management Accountants (CIMA), the global professional management accounting body.

CFA training

We're pleased to announce that we have teamed up with Kaplan Schweser to facilitate student preparation for the CFA exams. Students attending our finance-related Masters - MSc Accounting , MSc Accounting and Finance, MSc Finance and MSc Quantitative Finance - who perform well in Semester one and show a strong interest in CFA, will get free access to Kaplan's online training materials for CFA Part One.

Kaplan is a global firm offering professional training and helping individuals and organisations obtain financial certifications and designations. They will support our students by giving them access to tuition material, online question banks and progress tests, as well as mock test runs. They will also offer tutor support and 1-2-1 sessions.

Students enrol in the CFA Program to build a strong foundation of advanced investment analysis and real-world portfolio management skills. Preparing for the Level I test is the first step toward earning the Chartered Financial Analyst ® (CFA) credential, the most respected and recognised investment designation in the world.

CIMA accreditation

The MSc Accounting and Finance is accredited by the Chartered Institute of Management Accountants (CIMA), the global professional management accounting body based in the UK. On successful completion of the course, you will be able to join CIMA though an accelerated route that allows you to get up to 11 test exemptions towards CIMA's certificate, operational and management levels. 

Trading BootCamp Week

Each year, Alliance MBS runs a five-day Trading BootCamp for all current students studying MSc Accounting, MSc Accounting and Finance, MSc Finance and MSc Quantitative Finance. These trading simulations provide students with experience of real world trading and the opportunity to engage with contemporary financial markets, enabling them to apply their classroom theory in practice.

To deliver the Trading BootCamp, the School has teamed up with Amplify Trading to provide those looking to enter the financial industry with a crucial skill-set. Amplify Trading are a global financial trading and training firm, which offers training to some of the world's largest financial institutions, such as HSBC, Citigroup and Deutsche Bank. They have developed specialist software that enables students to experience a live trading floor and two experienced traders will deliver the week-long training.

Each day there will be four hours of classes in the morning followed by four hours of trading practice in the afternoon. Engaging in live breaking news, economic data and geo-political events, students will be able to apply their understanding, technical expertise and risk management practises in trading different asset classes.

This is a fantastic opportunity for accounting and finance students at Alliance MBS and is another way in which we prepare students for successful careers after graduation.

The Finance Zone  

The Finance Zone in Alliance Manchester Business School gives you access to one of the UK's most comprehensive collections of specialist financial and business databases that are used by top researchers around the world. These include Bloomberg, Datastream, Thomson ONE, Compustat, WRDS, Capital IQ and many more. Read more about the specialist financial and business databases >>

Special features

Worshipful Company of International Bankers Affiliation

Our accounting and finance division courses are now affiliated with the Worshipful Company of International Bankers (WCIB). This means that every year the best dissertation out of the following four courses will receive the WCIB Prize worth £300.

  • MSc Accounting 
  • MSc Accounting and Finance
  • MSc Finance
  • MSc Quantitative Finance

The winner will also enter the competition for the prestigious WCIB Lombard Prize. The Lombard Prize consists of a solid silver Armada dish, a cheque for £1500, one-year honorary membership to the Company and attendance at the Annual Banquet to collect the prize.

Read more about the WCIB Prize >>

Coursework and assessment

Assessment is by taught examinations, coursework, assignments, group assessment and presentations and finally by a 60 credit dissertation.

Course unit details

You will study a total of 180 credits during the course. The eight taught units during semester one and two total 120 credits and consist of both compulsory and optional taught units. 

Semester 1

Core units:

  • Asset Pricing
  • Cross Sectional Econometrics
  • Corporate Financial Reporting

Optional units:

  • Accounting & Financial Perspectives for Small & Medium Enterprises
  • International Accounting Practice & Regulation
  • Portfolio Investment

Semester 2

Core units:

  • Corporate Finance
  • Qualitative Research Methods

EITHER

  • Advanced Management Accounting

OR

One elective unit from:

  • Financial Statement Analysis
  • Time Series Econometrics
  • Mergers & Acquisitions: Economic & Financial Aspects
  • Current Issues in Empirical Finance
  • Advanced Management Accounting
  • Corporate Governance

Summer period

Dissertation (60 credits)

Apply what you have learned in the taught part of the course. Normally consists of a literature review followed by a piece of work based on qualitative or statistical research.

Course unit list

The course unit details given below are subject to change, and are the latest example of the curriculum available on this course of study.

Scholarships and bursaries

Masters scholarships for Accounting and Finance programmes for UK/EU students

We are delighted to be able to offer five scholarships available across the four Accounting and Finance programmes with a value of £10,000 towards the cost of the tuition fee. The scholarships will be awarded in line with our scholarship deadlines so early application is advisable.

Read more >>

Disability support

Practical support and advice for current students and applicants is available from the Disability Advisory and Support Service. Email: dass@manchester.ac.uk

Careers

Career opportunities

The course provides suitable training for those who wish to take up specialist positions in the accounting and financial services sector of the economy or those who wish to subsequently pursue a research and/or an academic career via a PhD in Accounting and Finance. Many students go on to work in the financial sector either in the City or across other sectors.

Recent recruiters

BDO LLP UK, Brammer UK, China CITIC Bank, Co-operative Auditing Department, Deloitte Enterprise Consulting, General Electric, IBM,KPMG, Lenovo, Mercedes-Benz, Nordea ASA, PwC, RBS and SME Development Bank.

Read more about graduate career destinations >>

Read more about the Postgraduate Careers Service >>

Latest information on visa changes and opportunities in the UK for international students.

Accrediting organisations

The course conforms to the present ESRC guidelines for Masters degrees and has ESRC recognition as a postgraduate training year in preparation for undertaking a PhD

The course has partnership status with the Chartered Financial Analyst Institute.

Fri, 14 Aug 2020 11:42:00 -0500 en text/html https://www.manchester.ac.uk/study/masters/courses/list/02061/msc-accounting-and-finance/all-content/
Killexams : Master of Financial Analysis

Founded in 1766, Rutgers is the 8th oldest University in the United States and one of nine Colonial Colleges that includes Harvard, Yale, Princeton, and Columbia. When you come to Rutgers, you will benefit from this tradition of academic excellence as well as enjoying our historic campus only 25 miles (41 kilometers) from New York City.

The Rutgers MFinA full-time program is taught at Rutgers Business School's $85 million building on the Livingston campus, one of five campuses that make up Rutgers University-New Brunswick, a secure, suburban campus in rural New Jersey. Students interested in the part-time program have the option of taking courses on the Livingston campus, on the Newark campus and any satellite campus locations.

Fri, 22 Apr 2022 13:34:00 -0500 en text/html https://www.business.rutgers.edu/masters-financial-analysis
Killexams : CFA Final test Pass Rate Climbs to 49% Following Pandemic Lows

(Bloomberg) -- The pass rate for the final level of the chartered financial analyst test rose from the historic lows set last year, when the pandemic disrupted testing.

Most Read from Bloomberg

In May, 49% of candidates successfully finished the series, up from 43% for those who sat for the test in November, the third-lowest pass rate for the Level III exam. That brings the figure closer to the 10-year average of 52%, according to the CFA Institute.

“We are pleased to see the pass rate continue to move closer to historical norms, but we acknowledge that not everyone is receiving good news today and may have struggled during the pandemic,” Chris Wiese, managing director for credentialing at the institute, said in a statement Thursday.

The latest results show a continued improvement from historically low pass rates across all levels of the CFA test last year. More than 12,000 candidates sat for the Level III test in May, which was administered at 520 testing centers around the world. Historically, the institute offered the test on paper, but transitioned to computer-based testing during the pandemic.

To become a charter holder, a candidate must pass all three exams and meet certain work-experience requirements. More than 190,000 investment professionals have the distinction, according to the Charlottesville, Virginia-based institute.

Earlier this month, Level I candidates got their results, with a 38% success rate for those who took the test in May, up from 36% in the previous testing period. Level II test-takers had a 44% pass rate when they sat for the test in February, down from 46% in November.

On average, candidates study 300 hours for each level of the test and take four years to complete the series. The Level III test consists of a series of vignettes with accompanying multiple-choice and essay questions, and takes almost four and a half hours to complete, with an optional break halfway through.

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.

Wed, 27 Jul 2022 20:29:00 -0500 en-NZ text/html https://nz.news.yahoo.com/cfa-final-exam-pass-rate-122915078.html
Killexams : CFA Level I test pass rates are bouncing back

The Chartered Financial Analyst Level I test is beginning to see pass rates revert to pre-COVID-19 pandemic levels after record low pass rates in 2021.

Of more than 19,000 candidates worldwide who sat for their exams in May, 38% have passed, the CFA Institute reported. By comparison, in 2021 the pass rates were the lowest since the institute began administering the test in 1963. The Level I exams administered in May, July, August and November last year had pass rates of 25%, 22%, 26% and 27%, respectively.

Chris Wiese, Charlottesville, Va.-based managing director, credentialing, at the CFA Institute, said in a phone interview the low pass rates last year were primarily due to the high rate of candidates who had deferred their test dates as a result of the pandemic.

"When someone defers their examination, they tend to do more poorly once they come back and actually take that test, and the longer the deferral period the worse on average they tend to do," Mr. Wiese said.

He said historically, the Level I test pass rates have averaged about 44% within a range of 41% to 49%.

The good news, he said, is that fewer testers are deferring.

"As the proportion of test-takers that are deferred candidates fall, we tend to see a direct effect with the pass rate rising," Mr. Wiese said. "It implies this general COVID effect is dissipating."

The May Level I CFA Program exams took place at 600 proctored computer-based venues in 364 cities in 100 markets worldwide.

Sun, 17 Jul 2022 17:27:00 -0500 en text/html https://www.pionline.com/frontlines/cfa-level-i-exam-pass-rates-are-bouncing-back
Killexams : “Too Big to Fail” Again?

Just beyond the present horizon, shrouded by our collective focus on price inflation, the economy faces the specter of another crisis—one many presume we’ve put beyond reach.

In the wake of the Great Recession, Congress passed, and President Obama signed, legislation explicitly designed to protect against a repeat of the financial shenanigans that prompted the 2007 meltdown. Voters were broadly disgusted and angry when Washington offered bailouts to Wall Street while Main Street businesses were left to suffer. And so Democrats, having wrested simultaneous control of Congress and the White House for the first time since 1994, mobilized to pass Dodd-Frank, a financial reform package crafted both to make sure banks never again got so far over their skis and that Washington wouldn’t have to come to the aid of what Congress believed were flat-out imprudent lenders.

For years, many grumbled that the law was riddled with loopholes. But now, little more than a decade later, Dodd-Frank’s shortcoming are poised to come into clear view. It’s not that the regulations born from that now decade-old law were too lax—in fact, the nation’s banks today are subject to very strict scrutiny. Rather, it’s the world of finance outside the more proscribed banking community that is stirring up a witch’s brew.

What some call “nonbank” financial firms—money managers, student lenders, mortgage companies, auto landers, consumer lenders, hedge funds, private capital firms, internet-only banks and various other asset management and payment firms—offer many of same services banks offer, but are not required to maintain the same government license. As such, they’ve been given the okay to engage in the very sorts of risks Dodd-Frank was designed to ameliorate, but they do so with a pittance of the oversight. While in a pinch these looming financial behemoths aren’t supposed to be able to count on government to provide the same level of protection, they’re securing for themselves a different (but very familiar) point of leverage: Some have become too big to (let) fail.

Eventually, the Federal Reserve will get inflation under control, hopefully via a “soft landing”—that is, without sparking a broad-based recession. But as rising interest rates begin to impact ordinary people with variable rate mortgages, car loans, credit card debt, and more, borrowers will inevitably begin struggling to pay. Banks, of course, must be ready for that moment—they’re required to maintain large reserve funds, to comply with strong risk management protocols and, in some cases, to endure regulators literally watching over their shoulders as they work. Moreover, they are all subject to frequent “stress tests” required by Dodd-Frank. But nonbanks are not subject to the same scrutiny. And if, during any future recession, some begin to teeter on the brink of bankruptcy, Washington will find itself faced with a familiar dilemma: Bail them out, or let the effects of their imprudence and/or bad luck spread across the rest of the economy.

There may yet be sufficient time to thwart that next Armageddon—Washington could embrace a new approach premised on the simple rule “same size, same activity, same regulation.” But to understand the crux of the problem, we must first grapple with the intricacies of the broader financial landscape. As the Lehman Brothers example made clear in 2008, the collateral damage of not providing a bailout to a behemoth financial institution can be profound. But that misses a deeper truth. By the time a big firm is calling for a bailout, the regulatory framework has already failed. The key is to nip imprudence in the bud and make sure all financial services companies have sufficient capital cushions. And that’s what we’re failing to do today.

Two Systems, One Country

It would perhaps be one thing if banks and nonbanks were in entirely different businesses—perhaps then policymakers could offer some reasonable explanation for why they’re regulated so differently. But the reality is that, since the Great Recession, the two categories of financial firms have become even more alike. Many from both camps offer home mortgages, for example, and provide credit card loans. A consumer trying to get a loan for appliances while fixing up his or her kitchen could go to a bank, for example and obtain a home equity line of credit or use his or bank credit card, alternatively this same person could go to a non-bank on the internet or otherwise and receive similar loans at similar APRs. But the former would be subject to capital requirements, supervisory scrutiny and serious safety and soundness rules while the second would be subject to almost no regulatory requirements let alone on site scrutiny . So much as they compete for the same customers, they’re subject to vastly disparate levels of scrutiny and financial cushions for rainy days.

In 2020, the banking sector’s primary federal regulators, namely the Office of the Comptroller of the Currency (OCC) (my former role) and the Federal Deposit Insurance Corporation (FDIC), boasted more than 5,500 employees in examination-related roles keeping tabs on 6,200 banks. (Of note, the Federal Reserve, which performs these functions for other banks, does not release comparable figures, though they have thousands supervisory employees.) But the Consumer Financial Protection Bureau (CFPB), created as part of Dodd-Frank, has only 625 examiners to cover 21,175 entities, some of which are banks, but most of which are not. This leaves those responsible for overseeing these newfangled financial houses almost entirely outgunned.

It’s not difficult to understand why that’s a problem. As of today, no one really knows exactly what’s happening in the nonbank financial universe—whether the big nonbanks would survive the sorts of stress tests banks must endure, or even whether they’re serving minority communities as banks are required to do. To that end, we don’t know what sorts of risks they’re imposing on the economy as a whole. But if reality is anything akin to what precipitated the Great Recession, the economy may be at much greater risk than we realize.

The divide that exists today between banks and nonbanks is an echo of the divergence that separated commercial and most investment banks during the previous “Glass-Steagall Era,” a period during which banking and securities activities were separate and separately regulated. Today, however, the nonbanks arguably enjoy even wider-ranging impunity than yesterday’s investment houses.

The core of the difference centers on the balance of each category’s rights and obligations: In exchange for the federal government’s implicit and explicit promises to extend “the federal safety net” to banks and their customers, chartered banks agree to endure a certain standard of federal monitoring and regulation. But hedge funds and private equity firms, among other nonbanks, sidestep that same scrutiny because they aren’t supposed to enjoy the privilege of a promised federal bailout.

Much as we may theorize that the government won’t come to the aid of nonbank financial firms, history has frequently demonstrated that, in many cases, Washington will end up swooping in as a savior of last resort. That’s what happened back in the 1990s when the federal government came to the aid of the wayward hedge fund Long-Term Capital Management, a firm whose failure threated to drag down the whole economy. That’s what happened again when regulators worked with the banking community to aid both Bear Stearns and Countrywide in 2008.

Nothing “legally” obligates taxpayers to bail out a huge nonbank like Blackrock or Vanguard if either began to teeter in the event of a major recession. But most everyone on Wall Street presumes that the government would step in were a nonbank that’s “too big to fail” to fall on hard times. That’s why, for all intents and purposes, Dodd-Frank’s ban on bailouts is a dead-letter. For the nation’s economic wellbeing, Washington could not reasonably afford to let them go bankrupt. And that then begs the question: If these companies are operating with so much of the upside of the federal safety net, why aren’t they subject to the same regulations and oversight as well?

The Mouse is Winning

In the wake of the housing market’s collapse more than a decade ago, nonbanks were originating a mere 9 percent of mortgages. But by 2021, they were supplying more than 64 percent of the nation’s home loans. And it’s in that context that the big nonbanks have figured out how to play the market. If they fail—or, should we say, when they fail—federal officials will have little choice but to bail them out. Impossible, some will say: Dodd-Frank outlawed bailouts. But, in the event of an emergency, Washington will find a way. In fact, the Fed has already shown its hand.

While not technically a “bailout,” the central bank’s decision in the early months of the pandemic to certain the value of junk bonds, namely the debt issued by companies at the greatest risk for being unable to make good, demonstrated the degree to which government can still come to the aid of troubled companies. The move guaranteed that companies which might otherwise have failed to stay afloat would be able to borrow, and that lenders would be made whole if the companies proved unable to service the debt. The same could be done for nonbanks. There’s no reason to believe they wouldn’t do the same thing in the future for any company whose default would have catastrophic effects on the economy.

But if Dodd-Frank has failed to disabuse nonbank financiers of the presumption that they could take imprudent risks knowing that the public will bail them out, the bill did at least establish a Financial Stability Oversight Council (FSOC), which was tasked with watching over “systemically important” (read: “too big to fail”) financial institutions. FSOC was designed to be a sort of star chamber, keeping watch on the big financial houses that were otherwise escaping strict scrutiny. And to that end, the Obama Administration made good, at least in part, by subjecting four big nonbanks—GE Capital, Prudential, MetLife, and AIG—to an extra layer of oversight.

But things changed again—as might have been expected. Regulation, after all, is little more than an endless game of cat-and-mouse. Savvy financiers are forever looking for ways to slip in bigger risks by exploiting cracks in any regulatory framework. To keep up, regulators must adjust in anticipation and, if not, in real time. But with FSOC, the mice have essentially won.

All four of the FSOC’s original wards are no longer under its thumb, and the Committee has yet to designate any new entity as a “systemic risk.” But some of the nonbanks now on the scene dwarf the market power wielded by the bad actors who have threatened the nation in the past. Which begs the question: Can we really afford to take for granted that they are safe and secure?

A Backdoor to Discrimination

There’s one final wrinkle to this story—one that centers on another crucial impetus for federal regulation. Today’s chartered banks are required by federal statute to serve low- and moderate-income Americans, particularly communities of color, to help ameliorate the racial wealth gap that remains so potent in contemporary American life. Discriminatory practices such as redlining prevented Black families from access to the American Dream during most of the 20th century. To that end, since 1977, the Community Reinvestment Act (CRA) has forced banks to ensure that their lending practices, in particular, work to stamp out the legacy of American bigotry.

Unfortunately, the nonbank financial institutions now encroaching on the banking industry’s bread-and-butter have no CRA obligations whatsoever. Does that mean we know they’re imposing new redlining regimes? Many on Wall Street will scoff at the suggestion, arguing that some of these new firms market themselves explicitly as catering to middle- and low-income America.

Yet nonbanks frequently keep their costs down by replacing the sorts of labor-intensive underwriting procedures banks are required to perform, instead making loan determinations strictly on the basis of algorithms designed purportedly to weigh the risk of various loan portfolios. And that has the potential to be, well, problematic

Because wealthier white applicants often elicit higher scores than Black applicants, algorithms may well steer nonbank resources to white applicants. They may overcharge the poorer borrowers by assigning them higher interest rates. And they may not be as scientifically precise as some would have us believe. This then points to a principle that should bear on any regulatory regime: Efforts to impose restrictions on an institution’s behavior can only be as good as a regulator’s willingness to enforce the law in a full, fair, and an even-handed way.

Here, again, nonbanks operate at a distinct advantage over their chartered peers. In 2020, the FDIC and OCC filed approximately 300 enforcement actions against the nation’s banks. By contrast, the CFBP, the only federal agency with any real oversight for consumer protection over the wide-ranging universe of nonbank lenders, filed fewer than 50. That’s a yawning gap, and one that calls into question the impact the current regulatory regime is having on the legacy of American racism.

A Path Forward

The answer isn’t to ban nonbanks, or to put onerous restrictions on them such that they’re driven out of business. Competition is good for consumers, assuming it’s fair. Rather, we need to reform the nation’s regulatory regime so that institutions competing directly against one another are subject to the same standards and enforcement.

As Fed Chairman Jerome Powell has argued, often to deaf ears in Congress, the correct approach to regulation for all financial players is “same activity, same regulation.” Ongoing efforts to reform CRA regulations—what would mark the first real overhaul since the 1990s—may offer an opportunity to make some headway on this front. To the extent that completing the task might require legislation, CRA reform would at a minimum offer bank regulators the opportunity to advocate explicitly for a level playing field.

Second, we should make sure that the expansion of oversight does not cost taxpayers a dime—the burden should be borne by the lenders that are profiting from the implicit certain that, should they become systemic risks to the economy, the government will come to their aid. Already, regulated national banks are assessed fees to cover the costs born from the Comptroller’s office. By the same token, state-chartered banks pay for at least a portion of state-level bank supervision and regulation. The same model should apply to nonbanks.

Third, we should find ways to ensure that growth within the nonbank sector redounds to the benefit of those legacy lenders that have long done the work of serving marginalized communities. Today, many communities that would effectively be underbanked are served by a rare breed of mission-oriented institutions known as a Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), each of which specialize in extending credit and taking deposits from more modestly situated individuals, businesses, and families.

But CDFIs and MDIs are particularly vulnerable during economic downturns because their borrowers are often the first to lose their jobs and the last to get them back. Nonbanks could be required to help fund an emergency reserve for CDFIs and MDIs such that when they get into trouble, pooled resources exist to help them survive. The nonbanks which contributed to the reserve fund could get credits toward their new bank-like obligations under the CRA.

The worry today is not just that financial institutions outside the realm of America’s banking sector operate at an unfair advantage. It’s that the disparity reveals a lack of oversight in a growing portion of the Main Street economy. Absent a level playing field, the American economy faces the downside risk of having to account for an opaque set of lenders that nevertheless presume that the government will help them out of future jams.

Unless Washington wakes up soon, the economic threat potentially building in the nonbank sector could prove to be even more powerful than the peril that accrued quietly ahead of the Great Recession. We can’t know the future, and we should hope that efforts to stem inflation do not precipitate a wider recession. But a failure to nip these risks in the bud could overcome the guardrails we erected little more than a decade ago to prevent us from falling off the same “too big to fail” cliff, again.

Wed, 03 Aug 2022 02:46:00 -0500 en text/html https://democracyjournal.org/arguments/too-big-to-fail-again/
Killexams : U.K. Regulator Criticizes Audit Firms Over test Cheating

The U.K.’s audit and accounting regulator is intensifying its scrutiny of big audit firms and what they are doing to prevent cheating on professional exams, a move that comes after the U.S. Securities and Exchange Commission in late June handed Ernst & Young a $100 million fine.

The Financial Reporting Council in a July 5 letter said it is “deeply concerned” about audit professionals cheating on external professional exams and internal assessments.

The letter, published Friday by the FRC, was sent to seven audit firms, including Big Four firms Deloitte, Ernst & Young, KPMG LLP and PricewaterhouseCoopers LLP, as well as BDO, Grant Thornton LLP and Mazars. It calls on the chief executives of the firms to detail the measures they have in place to prevent and detect misconduct around tests.

The pressure from the FRC follows regulatory action by other global regulators for test cheating at KPMG, PwC and EY.

“The FRC is deeply concerned about these events and the potential impact on U.K. audit firms,” Sarah Rapson, the FRC’s executive director for supervision, said in the letter. The test misconduct has “clear implications” for compliance with professional standards that call on audit firms and professionals to act with integrity, she added.

Supervisors from the FRC have been in talks with the seven audit firms about the controls in place to prevent test misconduct, the letter said. The audit watchdog is now asking the firms to formally lay out those measures on or before July 22.

The SEC last month charged EY for cheating by some auditors on required ethics exams. EY admitted that over multiple years, a “significant number” of audit professionals cheated on the ethics component of Certified Public Accountant exams and on continuing professional education courses, according to the SEC. The firm also acknowledged that it had failed to report test-related misbehavior when asked by regulators.

Meanwhile, PwC’s Canadian entity was fined by regulators in February for improper test sharing between 2016 and 2020 by more than 1,200 firm professionals. This resulted in a fine in February of up to $200,000 from the Canadian Public Accountability Board and a $750,000 penalty from the U.S. Public Company Accounting Oversight Board. The PCAOB additionally imposed a $450,000 penalty last year against KPMG Australia for widespread cheating on internal training tests.

KPMG in 2019 agreed to pay $50 million to settle allegations that auditors had cheated on internal training exams and that the firm had altered past audit work after receiving stolen information about PCAOB inspections. Five former KPMG officials were charged by the SEC in 2018 with using leaked confidential PCAOB information in an effort to Excellerate inspection results for the firm.

The PCAOB in April fined KPMG’s former head of U.S. audit business—Scott Marcello—$100,000, the largest monetary penalty imposed on an individual in a settled case. Mr. Marcello was terminated in 2017 over leaking confidential information.

In a separate letter to the CEOs of the U.K.’s professional accountancy bodies, Ms. Rapson said that the “severity and repeating nature of these issues” has prompted the FRC to seek a deep understanding of the controls in place to prevent test misconduct. The FRC has oversight over six chartered accountancy bodies, including the Association of Chartered Certified Accountants, the Chartered Accountants Ireland and the Chartered Institute of Management Accountants.

Regulators and companies expect honesty and integrity from audit firms and auditors, said Marc Moore, chair of corporate and financial law at the University College London’s law school. “These are the very values thrown into question by this,” he added, referring to test misconduct.

The FRC’s letter is a step in the right direction, but questions remain about how effective it will be, Mr. Moore said. “Any response [the firms] provide will deliver assurance about future practices,” Mr. Moore said. “But whether it really mitigates worries about the integrity of audits is questionable” because it doesn’t provide reassurances about past practices, he added.

KPMG U.K. said it makes clear what is expected from firm professionals and that it would fully investigate misconduct when necessary. Deloitte U.K. said it will respond to the FRC and that it takes professional and ethical obligations seriously. EY and PwC pointed to the comments they made when the fines against them were announced, which noted steps taken by the firms in response to the regulators’ findings, and declined to comment further.

Mazars and the FRC declined to comment, while the other firms that received the letter did not immediately respond. Deloitte is a sponsor of CFO Journal.

Write to Jennifer Williams-Alvarez at jennifer.williams-alvarez@wsj.com

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Mon, 18 Jul 2022 10:03:00 -0500 en-US text/html https://www.wsj.com/articles/u-k-regulator-criticizes-audit-firms-over-exam-cheating-11658179840
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