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Stock Analysts to Require Certificates from Next Year

Posted August. 13, 2008 07:05,   


A certificate will be required from February next year to work as a securities analyst.

Stock industry sources said yesterday that the Korea Securities Dealers Association, Korea Securities Training Institute and financial authorities will soon introduce certificates and qualifying examinations for stock analysts before year’s end.

The dealers association will frame the certificate system for securities analysts in September, hold a public hearing on it by the end of September, and introduce the system before the end of this year.

Cha Sang-gi, head of the association’s expert management department, said, “As the Capital Markets Integration Act, which is slated to take effect in February 2009, has a provision on the staff in charge of research and analysis, referring to securities analysts, a certificate system for securities analysts needs to be introduced.”

Stock experts can be recognized as securities analysts only when brokerages register the names of "staff in charge of research and analysis" to the association. As of last month, 1,209 securities analysts were registered with the association.

Cha said, “We’re considering a variety of measures for those who have been registered as securities analysts. For example, they can be automatically categorized as securities analysts if they meet specified qualifications. Or they might be asked to acquire certificates via examination.”

In the United States, securities analysts must pass the Series 86/87 research analyst exam. Similarly, those qualified to conduct general securities business can work as stock analysts in Britain.

The dealers association suggested a report on improving the certificate system for experts in the capital market to financial authorities in October last year. The report dealt with a qualifying exam and certificate system for analysts, integration of exams for asset planners and fund salesmen, and a qualifying exam for branch managers.

The new system is drawing criticism, however. The head of research for a securities firm said, “Introducing a certificate system or strengthening qualifications will not strengthen the expertise and competitiveness of securities analysts. Securities analysts can prove and nurture their capability in the market via intense competition.”