Financial Services Overview   The financial services industry comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are identified: 1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. Establishments engaged in this activity use raised funds to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, transform or repackage the funds with respect to maturity, scale, and risk. This activity is known as financial intermediation.

2. Pooling of risk by underwriting insurance and annuities. Establishments engaged in this activity collect fees, insurance premiums, or annuity considerations; build up reserves; invest those reserves; and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment.

3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs.

Today’s financial services industry is undergoing unprecedented consolidation, convergence and globalization. The industry is evolving rapidly, and its companies are striving to be unique in this rapidly changing marketplace. Banks, brokerages, asset managers, insurers, and financial information providers– they’re all keen to get much closer to their customers, deal with a raft of new regulatory mandates and minimize the many risks of doing business in today’s tumultuous financial environment.

Subjects Covered Under This Heading are Described Below.

Accountants audit the accounting records of public and private organizations and attest to compliance with generally accepted accounting practices. Offices of certified public accountants (CPAs) may provide one or more of the following accounting services: (1) auditing financial statements; (2) designing accounting systems; (3) preparing financial statements; (4) developing budgets; and (5) providing advice on matters related to accounting. These establishments may also provide related services, such as bookkeeping, tax return preparation, and payroll processing.

Accounting has been everywhere in the news recently - from the Enron scandal to questions about bookkeeping at other top companies. With the focus on proper accounting increasing, the industry is set for major growth and recruiting; industry associations are already planning major pushes to bring more talent into the industry. In fact, accounting has been rated one of the most desirable professions available. According to the 2002 Jobs Rated Almanac, "accountant" was the fifth best job (out of 250) in the nation in terms of low stress, high compensation, lots of autonomy and tremendous hiring demand.

Learning in this field is a lifelong endeavor, especially in a world that is changing as quickly as this. Those who have been in the accounting field for many years can attest to the need for staying current with today's legal requirements, technology, practice tools and other areas critical to the practice of accounting. Take advantage of American Financial Institute’s lifelong learning opportunities.

Continuing education requirements for accountants vary greatly from state-to-state throughout the United States and sometimes contain specific educational course approvals. Remember to verify the specific state accounting boards' requirements for re-licensure in the state where you are licensed. Many states have restrictions on the subject matter that is acceptable for CE credit and or on the number of CE credits that can be earned through self-instructional online courses.

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A financial planner or personal financial planner primarily engaged in providing customized investment advice to clients on a fee basis, but do not have the authority to execute trades. Primary activities performed by establishments in this industry are providing financial planning advice and investment counseling to meet the goals and needs of specific clients. They help people deal with various personal financial issues through proper planning, which includes but is not limited to these major areas: cash flow management, education planning, retirement planning, investment planning, risk management and insurance planning, tax planning, estate planning and business succession planning (for business owners).

The title of 'financial planner' is largely an unregulated term in many countries. Lack of regulation has allowed financial services personnel to use the title indiscriminately. Often, financial products intermediaries, such as life insurance and unit trusts agents, use the title to project a professional image to clients even when they are not trained in the professional aspects of financial planning. This has sometimes led to abuse. Clients may be deceived to receive financial planning services that are unprofessional, from unethical providers.

To protect the industry, financial planning professionals and practitioners have sought varying designations. The CFP® certification is deemed gold-standard proof of expertise in the financial planning industry. As such, it sets stringent criteria for the practitioner with a 4-year degree wishing to distinguish him or herself from other financial professionals.

Learning in this field is a lifelong endeavor, especially in a world that is changing as quickly as this. Those who have been in the financial planning business for many years can attest to the need for staying current with today's legal requirements, technology, practice tools and other areas critical to the practice of accounting. Take advantage of American Financial Institute’s lifelong learning opportunities. We provide CFP® certificants with continuing education courses that meet the requirement of the Certified Financial Planning Board.

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The demand for insurance professionals is increasing dramatically. Jobs in insurance involve helping individuals and businesses manage risk to protect themselves from catastrophic losses. You could work in a variety of insurance jobs including brokerage, underwriting, claims, sales, asset management, customer service or as an actuary. You'll have the opportunity to help people when they need it most.

The insurance industry consists mainly of insurance carriers (or insurers) and insurance agencies and brokerages. In general, insurance carriers are large companies that provide insurance and assume the risks covered by the policy. Insurance agencies and brokerages sell insurance policies for the carriers.

Brokers and agents sell insurance policies to individuals and companies that want to guard their assets. In the event of a fire, injury, or accident, customers turn to their agents who must have a detailed knowledge of policies and their limitations.

Actuaries are responsible for determining the risk involved in insuring a person's life, their property, their health, or their business. A successful actuary understands government legislation and social tendencies that effect risk. They often work with government entities, insurance agencies, pension management firms, and other advisors.

When a person applies for a policy, it is the underwriter who determines whether that person is worth the risk of insuring. By assessing how much risk a person represents, underwriters ensure that all policyholders fit the company's requirements. In addition, underwriters often help determine policy pricing.

Customer service representatives process insurance policy applications, changes, and cancellations. They review applications for completeness, compile data on policy changes, and verify the accuracy of insurance company records. They may also process claims and sell new policies to existing clients.

Claims adjusters, examiners, and investigators decide whether claims are covered by the customer's policy, confirm payment, and, when necessary, investigate the circumstances surrounding a claim. Claims adjusters work for property and liability insurance carriers or for independent adjusting firms.

American Financial Institute offers pre-license and continue education courses for insurance professionals. Education requirements for vary greatly from state-to-state throughout the United States and sometimes contain specific educational course approvals. You should contact your state's appropriate licensing bureau for the current requirements.

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This industry group comprises establishments primarily engaged in putting capital at risk in the process of underwriting securities issues or in making markets for securities and commodities; and those acting as agents and/or brokers between buyers and sellers of securities and commodities, usually charging a commission. Investment bankers act as principals (i.e., investors who buy or sell on their own account) in firm commitment transactions or act as agents in best effort and standby commitments. This industry also includes establishments acting as principals in buying or selling securities generally on a spread basis, such as securities dealers or stock option dealers.

Most investors—whether they’re individuals with a few hundred dollars or large institutions with millions—use securities, commodities, and financial-services salespeople. Also called brokers, stockbrokers, registered representatives, account executives, and financial consultants, they perform a variety of tasks: buying/selling stocks, bonds, shares in mutual funds, insurance annuities, and other financial products. Additionally, they provide advice on investments, estate planning and other financial matters. They also explain stock market terms and trading practices, advise on the purchase/sale of particular securities, and design client portfolios.

American Financial Institute offers a variety of NASD and Securities training courses to help individual pass their Securities exam and earn their Securities license. A list of NASD Securities license is provided below:

Series 3: Qualifies an individual to sell futures contracts or options on futures.

Series 4: Registered Options Principal Qualifies managers to supervise option sales personnel or individuals supervising options compliance.

Series 6: Representative Investment Company Products/Variable Contract Qualifies an individual to sell investment company securities, variable annuities, and variable life insurance mutual funds.

Series 7: General Securities Qualifies a representative to sell any type of security.

Series 9: General Securities Sales Supervisor Qualifies an individual to register as a principal to supervise sales activities in corporate, municipal, and options securities, investment company products, variable contracts, and direct participation programs.

Series 10: General Securities Sales Supervisor Qualifies an individual to register as a principal to supervise sales activities in corporate, municipal, and options securities, investment company products, variable contracts, and direct participation programs.

Series 11: Assistant Representative/Order Processing Qualifies an individual associated with an NASD member form to accept unsolicited telephone orders and give quotes to customers.

Series 23: General Securities Principal Sales Supervisor Qualifies an individual to be an officer, partner or supervisor of sales personnel with an NASD member firm.

Series 24: General Securities Principal Qualifies an individual to be an officer, partner, or supervisor of sales personnel with a NASD member firm.

Series 26: Investment Company Products/Variable Contracts Principal This course qualifies an individual to supervise the sale of investment company securities and variable contracts.

Series 27: Financial And Operations Principal This course qualifies an individual to be a financial officer of a NASD member firm.

Series 31: Qualifies an individual to solicit funds, securities, or property for participation in a commodity pool, solicit discretionary accounts to be managed by CTAs, or supervise persons who perform these same limited activities.

Series 32: Qualifies individuals who are registered by regulatory authorities in the UK or Canada.

Series 33: Qualifies an individual to solicit or accept customer orders for futures or options involving stock index, currency, or interest rate/security futures products, or to supervise persons who perform these same limited activities.

Series 51: Municipal Securities Limited Principal Qualifies an individual to manage, direct, or supervise activities in municipal fund securities.

Series 53: Municipal Securities Principal Qualifies an individual to be a financial officer of a NASD member firm.

Series 55: Equity Trader/Limited Representative Qualifies an individual to trade equity and convertible debt securities on a principal or agency basis.

Series 62: Corporate Securities Limited Representative Qualifies individuals to sell corporate securities.

Series 63: Uniform Securities Agent State Law Qualifies individuals to sell securities across state lines. These laws are sometimes called "Blue Sky" laws.

Series 65: Uniform Investment Advisor Law Qualifies a representative to act as an investment advisor and receive a fee.

Series 66: Registered Agent and Investment Advisor Qualifies an individual to be both an "agent" of a broker/dealer and an "investment advisor" representative in each state.

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