Enhancement Option – Fundamentals of Finance
MINIMUM REQUIRMENTS: None
SUBJECT LEADER: Miss K Todd
BOARD: Chartered Institute for Securities and Investments
EXAMINATIONS: Online Multiple Choice Exam
NON-EXAM ASSESSMENT: None
What is Fundamentals of Financial Services?
This qualification is an important first step in developing the essential basic knowledge required for working in financial services.
Students will gain a broad overview of the industry and will learn about the types of banking, commonly used financial products, such as shares, bonds and insurance and gain an understanding of financial terminology.
The course has 7 elements, these are:
- Ethics and Integrity in Financial Services – Explores the key principles of ethical behaviour in financial services
- Introduction – saving and borrowing – Defines key financial services terms and principles including savers, borrowers, equity, bonds, risk and reward, insurance and foreign exchange
- Banking – Identifies the difference between retail and commercial banking and explains the functions of each banking type and their customers – individuals or corporates. Explains loans, mortgages and overdrafts, credit cards, interest rates and how they are calculated.
- Equities/Shares/Stocks – Explores the reasons for issuing shares to finance a company and the return that can be gained – dividend/ capital gain. Provides an understanding of shares, what they are for, and the risks involved in owning them
- Bonds – Identifies the two main issuers of bonds – companies and governments. Covers the features of bonds and the advantages and disadvantages of investing in bonds
- Markets – Explains how a stock exchange operates, the purpose of a stock exchange index, and compares different stock markets around the world
- Other areas of Financial Services – Highlights other key areas including: Fund Management, Foreign Exchange, Insurance and Retirement Planning
