| Educational Attainment Breakdown for Sales Agents, Financial Services |
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Source: U.S. Department of Labor
Most positions require a bachelor's degree, although few require a specific major. An MBA or professional certification can also be very helpful. Advancement is often very difficult, but those who are successful can have extremely lucrative careers.
Education and training. A college education is important for securities and commodities sales agents, especially in larger firms, because they must be knowledgeable about economic conditions and trends. Most workers have a bachelor's degree in business, finance, accounting, or economics, although this is not necessarily a requirement. Many firms hire summer interns before their last year of college and those who are most successful are offered full-time jobs after they graduate.
After working for a few years, many agents get Master's degrees in Business Administration (MBA). This degree is a requirement for many of the high-level positions in the securities industry. Because the MBA is a professional degree designed to expose students to real-world business practices, it is considered to be a major asset for jobseekers. Employers often reward MBA-holders with higher-level positions, better compensation, and even large signing bonuses.
Most employers provide intensive on-the-job training, especially for entry-level employees. While college coursework is helpful, most firms have a specialized business model which employees must learn. New employees must also come to know the large number of products and services offered by most firms. Trainees in large firms may receive classroom instruction in securities analysis, effective speaking, and the finer points of selling. Firms often rotate their trainees among various departments, to give them a broad perspective of the securities business. In small firms, sales agents often receive training in outside institutions and on the job.
Securities and commodities sales agents must keep up with new products and services and other developments. Because of this, brokers regularly attend conferences and training seminars.
Licensure. Brokers and investment advisors must register as representatives of their firm with the Financial Industry Regulatory Authority (FINRA). Before beginners can qualify as registered representatives, they must be an employee of a registered firm for at least 4 months and pass the General Securities Registered Representative Examination—known as the Series 7 Exam—administered by FINRA. The exam takes 6 hours and contains 250 multiple-choice questions; a passing score is above 70 percent.
Most States require a second examination—the Uniform Securities Agents State Law Examination (Series 63 or 66). This test measures the prospective representative's knowledge of the securities business in general, customer protection requirements, and recordkeeping procedures. Most firms offer training to help their employees pass these exams.
There are many other licenses available, each of which gives the holder the right to sell different products and services. Most experienced representatives have several. Traders and some other workers also need licenses, although these vary greatly by firm and specialization. Financial services sales agents may also need to be licensed, especially if they sell securities or insurance.
Registered representatives must attend periodic continuing education classes to maintain their licenses. Courses consist of computer-based training in regulatory matters and company training on new products and services.
Other qualifications. Many employers consider personal qualities and skills more important than academic training. Employers seek applicants who have excellent interpersonal and communication skills, a strong work ethic, the ability to work in a team, and a desire to succeed. The ability to understand and analyze numbers is also especially important. Because securities, commodities, and financial services sales agents are entrusted with large sums of money and personal information, employers also make sure that applicants have a good credit history and a clean record. Self-confidence and an ability to handle frequent rejection are important ingredients for success.
Maturity and the ability to work independently are important so many employers prefer to hire those who have achieved success in other jobs. Most firms prefer candidates with sales experience, particularly those who have worked on commission in areas such as real estate or insurance. Other firms prefer to hire workers right out of college, with the intention of molding them to their corporate image.
Advancement. The principal form of advancement for brokers, investment advisors, and financial services sales agents is an increase in the number and size of the accounts they handle. Although beginners usually service the accounts of individual investors, they may eventually handle very large institutional accounts, such as those of banks and pension funds. After taking a series of tests, some brokers become portfolio managers and have greater authority to make investment decisions regarding an account. Some experienced sales agents become branch office managers and supervise other sales agents while continuing to provide services for their own customers. A few agents advance to top management positions or become partners in their firms.
Investment bankers who enter the occupation directly after college generally start as analysts. At this level, employees have some contact with clients but spend most of their time producing "pitchbooks," information booklets used to sell products. They also receive intensive training. After 2 to 3 years, top analysts may be promoted to an associate position or asked to leave. Recent graduates from MBA programs can start as associates, which is similar to the analyst position, but with more responsibilities. Associate may lead a group of analysts and tend to have more contact with clients. After 2 to 3 years, associates are promoted or terminated. Successful associates can become vice presidents, who manage the work of analysts and associates and have a great deal of contact with clients. Vice presidents may advance to become directors, sometimes called executive directors.
Source: U.S. Department of Labor's Occupational Outlook Handbook
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