A tri-partite agreement has been signed between US securities industry regulators, the National Association of Securities Dealers (NASD), New York Stock Exchange Regulation (NYSE) and the principal UK wholesale financial services qualifications provider, the Securities & Investment Institute (SII), with a view to making a global recognition of qualifications for the capital markets industry.
The agreement announces the development, by the three bodies, of a Global Capital Markets Qualification (GCMQ) that will enable capital markets specialists to move between the jurisdictions of the United States of America and the United Kingdom. Practically, this means that candidates will no longer have to sit two examinations in two different jurisdictions. For example, a UK qualified candidate wishing to work in the US in the future will be required to sit just the one US regulatory paper.
The qualification will be a new registration category and will comprise two units. The core GCMQ unit will test the knowledge candidates require to perform job functions that are common to entry-level capital markets professionals employed by the NYSE and NASD registered firms, and by FSA authorised and regulated firms in the UK.
The second regulatory unit will assess knowledge specific to the respective jurisdictions. For the UK the SII will develop and administer the UK Capital Markets Rules and Regulations Exam (“the UK Rules Exam”). This will assess knowledge of the UK securities and investment
industry’s rules and regulations. In the US the US Capital Markets Rules and Regulations Exam (the “US Rules Exam”) will be developed by NYSE and NASD to assess knowledge of the US government and security industry’s regulatory system.
It is envisaged that the core GCMQ unit will be available to candidates globally via computer based testing (CBT).
The qualification will be developed over the next 15 months for launch in 2006. The GCMQ is aimed at securities advisers, dealers and specialists in wholesale capital markets.
Simon Culhane, Chief Executive of the UK Securities & Investment Institute said, ” As markets are becoming increasingly global, we are excited about the possibilities for this new exam. We fully expect it to become the de facto benchmark for staff working in the investment banking arena and foresee this as only the beginning. This exam is going to facilitate the global transfer of personnel into new jurisdictions and we see this qualification expanding into other countries. We are proud to be at the forefront of this initiative.”
“With this new examination, we are breaking new ground and helping securities professionals in their efforts to conduct what is now a truly global securities business,” said NASD Chairman and CEO Robert R.Glauber. “This is a terrific example of a win/win for us as well as those we regulate. We will have confidence that securities professionals going back and forth between the US and UK have a sound base of knowledge before conducting business, and they will have the portability that they need. We think this is a great start and are excited about including other countries in this endeavor over time.”