Executive Education from the ICMA Centre

MSc Investment Banking and Islamic Finance

Date: 21 February, 2012  Page Author: André Mansi

Applications are open for 2012 entry

This degree is a first in the UK and aims to respond to the growing interest in Islamic Finance, which is evidenced by a continuous increase in Islamic Banking services, Islamic Investment and other financial services based on Islamic principles.

INCEIF LogoThe degree is taught jointly with INCEIF (International Centre for Education in Islamic Finance), Kuala Lumpur and has many key benefits including:

  • Available via two methods of delivery: 12 months including a period studying at INCEIF in Kuala Lumpur, and 9 months at Reading only which includes a compulsory research project
  • Jointly taught with a respected university in Islamic Finance
  • First degree in UK with Islamic material taught by Islamic specialists
  • Professional qualification from INCEIF
  • Opportunity to study in Kuala Lumpur for 3 months

The degree will not require any previous knowledge of Islamic Law or specific Islamic concepts but will address and explain the respective current issues within their overall Islamic economic and legal context.

Among the teaching staff are two leaders in the field of Islamic Finance: Professor Rifaat Ahmed Abdel Karim who is the Secretary-General of the Islamic Financial Services Board (IFSB) and Simon Archer whose research focuses on Islamic financial institutions and is co-editor of the book Miller European Accounting and Islamic Finance: Innovation and Growth.

All students will qualify for exemptions from parts of the Chartered Islamic Finance Professional (CIFP) qualification from INCEIF if they successfully pass the MSc programme.

Entry Requirements

Entry requirements

Undergraduate Degree
 Minimum 2:1 or the equivalent from an overseas institution*.
Degree Discipline
 Any discipline – no quantitative requirement.
GMAT
 No requirement.

* Please note that due to increasing competition for places on our Masters programmes our entry requirements may change.

We operate a rolling admissions system and you are therefore advised to apply early in order to be sure of your place on our programmes. We are experiencing high levels of demand for 2012 entry, and it is possible we will have to close applications to some programmes once places are filled.

English requirements

Proficiency required for International students enrolling in this degree for entry in September 2012 are:

TOEFL (Test of English as a foreign language): Overall score of 88 for the internet based test, with no less than 22 in Reading, 21 in Listening, 23 in Speaking and 21 in Writing.

IELTS (British Council International English Language Test): Score of 6.5 overall with no component in the test less than 6.0.

 

Proficiency required for international students enrolling in this degree for entry in September 2013 will be:

TOEFL (Test of English as a foreign language): Overall score of 100 for the internet based test, with no less than 22 in Reading, 21 in Listening, 23 in Speaking and 21 in Writing.

IELTS (British Council International English Language Test): Score of 7.0 overall with no component in the test less than 6.5.

 

Contact

For more details, contact Kim Mountford, Admissions Officer, at k.mountford@icmacentre.ac.uk

Fees

Fees 2012-13

Full-time
Msc Investment Banking and Islamic Finance (12 month option incl. Malaysia) £19,000
MSc Investment Banking and Islamic Finance (9 month UK only option) £18,000

Fees are the same for both EU and overseas students.

Fee structure for the flexible and distance learning programmes is for the length of the entire programme (ie 18 months or 24 months respectively)

Living expenses are in addition to the above fees. Overseas full-time participants can expect to spend approximately £9,400 on additional living expenses during the course of their studies. Home/EU full-time participants can expect to spend approximately £8,000 on additional living expenses during the course of their studies. Flexible participants can expect to spend approximately £5,000 during their part 2 studies.

Please note that the living expenses detailed in the paragraph above are for study at the University of Reading, details of living expenses in Kuala Lumpur will be available in due course.

How to apply

Full-Time MSc Applications

Applications closed for 2011 entry:

Applications for 2012 entry are open for all programmes.

The ICMA Centre operates on a rolling admissions basis, meaning that prospective students can apply for our programmes throughout the year, however we do advise to apply early in the year. We aim to return a decision within 4-6 weeks of receiving your application.

Full-time applicants can apply online or download our application form and complete it by hand.

Flexible and Distance Learning Applications

We accept online applications only for flexible and distance learning.

Applications closed for all flexible and distance learning programmes for 2011 entry. Applications are open for 2012 entry.

Learning options

Learning Options

This programme is available via two methods of delivery:

1. With overseas study components at INCEIF. On this option, students will spend the three ordinary terms at Reading and then attend a fourth term (studying 20 credits) from June to August at INCEIF (the Global University in Islamic Finance) in Kuala Lumpur, Malaysia. At INCEIF students will also benefit from combinations of industry visits, a one day Capital Market Course by the Securities Industry Development Corporation (SIDC), and industry talks.

2. Full time in Reading. This option involves the completion of a compulsory Research Project (20 credits) in the Spring term and the programme is completed in 9 months, with graduation in July.

Full-time: 12 months (Students will be resident and under take full-time study in the UK and Malaysia)

Full-time: 9 months (Students will be resident and undertake full-time study in the UK only)

Oct-Dec 2011: Part 1 - ICMA Centre, University of Reading, UK
Jan 2012: Part 1 Exams, Reading, UK
Jan - Apr 2012: Part 2 - ICMA Centre, University of Reading, UK
May 2012: Part 2 Exams, Reading, UK
Jun-Aug 2012: Part 2 - INCEIF, Kuala Lumpur, Malaysia
Aug 2012: Part 2 Exams - Kuala Lumpur, Malaysia

FAQs

Do I need to take GMAT?

If you are unsure as to the need to take GMAT (Graduate Management Admissions Test), please apply without taking it. We will advise in the form of a conditional offer if we think that it is necessary for you to take it. Obtaining a good score of 600 or above and a good score in the quantitative section of the test can support your case at the Admissions Committee. The GMAT is not a mandatory requirement for applications to the MSc programme, but can enhance an application. More information about the GMAT can be obtained at www.mba.com.

When is the deadline for applications?

There is no fixed deadline for full-time applications. However, you are advised to apply early, as the admission process can take up to 4-6 weeks to complete. Places become very limited from June onwards. You are encouraged to telephone the Centre after that date to clarify the situation.

Deadline for Flexible and Distance Learning applications: Friday 10 August 2012.

How long will it take to receive an answer to my application?

The admissions process will take up to 4-6 weeks from receipt of a completed application. We will endeavour to process your application sooner, however, the delay is normally due to outstanding supporting documents.

My referee has sent his reference direct, is this OK?

Yes. We keep all references and match them with applications when they are received.

Who decides on the suitability of an application?

Each application is considered by the Admissions Committee, made up of academic members of staff and the Admissions Officer.

How do I pay the £1000 deposit and when is the deadline?

By Sterling cheque payable to the University of Reading by credit card or bank transfer.

Applicants accepted on to an ICMA Centre MSc programme should pay their deposit by the deadline indicated in the  recommendation e-mail from the ICMA Centre.

Where do I send my information proving that I have fulfilled my conditions?

Send this information to the Postgraduate Admission Office, the ICMA Centre will be automatically updated. Their full address is:

Postgraduate Admissions Office
Henley Business School
University of Reading
Whiteknights
PO Box 218
Reading
RG6 6AA

Am I qualified to do this programme?

We can only give a considered answer to this question if we have received a completed application form and supporting documents. Without this information it is difficult to make any evaluation of your previous qualifications.

To whom should I address any queries about my application?

All queries should be addressed to the Admissions Team: admissions@icmacentre.ac.uk.

Does the ICMA Centre provide funding? If not, how do I fund the programme?

A range of scholarship awards are available. Please refer to the ICMA Centre Scholarships pages for further details.

How do I arrange accommodation?

All enquiries concerning accommodation should be directed to Student Services, telephone number +44 (0)118 378 5555.

Additional information

Careers

Careers in Islamic Finance

IBIF graduates will benefit from a thorough understanding of Western banking practices allied to the principles of Islamic Finance. There is a growing demand from financial institutions worldwide for specialist professionals trained in the techniques of Islamic Finance. We expect our graduates will pursue rewarding careers with investment banks in a diverse range of fields, including corporate and project finance, specialist structured products and derivatives, trade finance, sales and trading.

In addition, they will be well-qualified to join specialist Islamic financial institutions, regulatory agencies, investment managers, consultancies and the finance divisions of multinational corporations.

For more information regarding graduate destinations, please visit www.icmacentre.ac.uk/careers.

Professional Development and Accreditation

Professional Development

ICMA International Fixed Income and Derivatives (IFID) Certificate

Students who successfully complete this degree including the module International Securities Markets will be granted this certificate.

Chartered Islamic Finance Professional (CIFP)

The degree covers the materials necessary to qualify for Part 1.

Further information is available regarding exemption criteria in MScs and Professional Qualifications.

Module listing and descriptions

NB. All our Masters degrees comprise a total of 180 credits: 80 credits at Part One and 100 credits at Part Two. Please note that module titles or content may vary each year.

Part 1 Modules

Part 1 Modules

Securities, Futures and Options

Module convenor: Professor Chris Brooks20 credits

Introduces techniques for analysing and valuing different classes of risky assets. It also develops ways of optimally selecting portfolios of such assets and develops models of how these portfolios may be priced in financial markets. The techniques introduced in this module are widely applied in other elements of the programme. Outline: Financial assets and investing in securities markets; Investors and their objectives; Risk and capital allocation; Optimal portfolio selection; Capital asset pricing model; Single index and multifactor models; Arbitrage pricing theory; Derivative securities and the no-arbitrage principle; Forwards and Futures contracts; Simple hedging; Options basic properties and trading strategies.

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Fixed Income and Equity Investments

Module convenors: Dr George Alexandridis  | John Evans  | 20 credits

Fixed Income and Equity Investments deals with the valuation of fixed income and equity securities. The module focuses on the basic characteristics of each security and the strategies used for approximating their fundamental value and assessing their risk. Its primary aim is to discuss how certain characteristics and relationships can affect the value of fixed income and equity securities and how can they be exploited to form optimal investment strategies. The analytical techniques introduced in this module are widely applied in other elements of the programme. Outline: An introduction to securities,  Applying time-value-of-money (TVM) and probability theory to value financial instruments,  Bond prices and yields, Introduction to default risk, Term Structure of Interest Rates, Interest rate risk, Active Bond Management,  Economic and Industry analysis, Financial Statement Analysis, Equity Valuation, Behavioural Finance and Technical analysis  

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Financial Analysis

Module convenor: John Evans20 credits

Financial Analysis provides a comprehensive study of ?top-down' fundamental analysis and then allows one to take this framework and apply it to the valuation of financial securities.  The first part of the course takes the student through macro-economics, micro-economics, industry analysis, financial statement analysis and the second part of the course focuses on financial statement analysis and then looks to apply this framework to the corporate valuation decision.  The final objective is to bring together these various disciplines into a single framework for analysis. The analytical techniques taught in this course are very applied, to allow the successful candidates to apply directly to industry either the analysis section (as an equity analyst would do) or the usage of the relative value results as a fund manager or trader would do.

Outline content

Introduction and overview of the framework, and Markets and government
  • Aggregate demand, fiscal and monetary policy
  • Consumer demand and competitive markets
  • Industry analysis and regulation
  • The accrual concept and cash flows
  • Current assets and inventories
  • Long term assets
  • Long term finance
  • Business investments and combinations
  • Pensions and derivatives
  • Research project with presentation to class

Financial Markets

Module convenor: Dr Alfonso Dufour20 credits

Provides knowledge of global financial markets, the importance of liquidity, the distinction between exchange versus OTC markets, primary and secondary markets and the role of intermediaries in their various forms. Participants will gain an understanding of: international stock and bond markets, repo markets (for borrowing/lending on a secured basis); an introduction to foreign exchange and money markets, and to futures markets (which are developed in more detail in optional Part 2 modules); finally specific markets for commodity and energy are studied in more detail.

Outline content

  • General introduction to world financial markets
  • Liquidity, the distinction between exchange versus OTC markets and the role of intermediaries in their various forms
  • Short-term debt securities issued by government and corporations
  • Classification of bonds according to issuer: government, agencies, corporate and municipa
  • Comparison of bond markets in major countries and a description of the main intermediaries and their role
  • Foreign exchange market, quotation conventions, types of brokers, central banks? policies
  • Primary and secondary stock markets
  • Futures markets
  • Commodities markets
  • Energy markets.

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Introduction to Quantitative Methods for Finance

Module convenor: Professor Carol AlexanderNot for credit

This non assessed, compulsory course provides an introduction to three main areas of mathematics and statistics that are used in finance; Probability and Statistics, Linear Algebra, and Regression Analysis. The emphasis is on the financial applications of quantitative techniques.

Part 2 - Reading

Part 2 Modules (Compulsory)

Corporate Financial Management

Module convenor: Dr Carol Padgett10 credits

Corporate financial management deals with the long-term financial decisions that corporations make and the tools and analysis used to make these decisions. The objective of the module is to introduce students to the main financial decisions taken by corporations, examining how those decisions influence the market's valuation of companies.

Outline: The corporate form and initial public offerings, Valuation: management and measurement of value, Capital budgeting: decisions on fixed assets, Treasury function 1: working capital management and risk management, Treasury function 2: new issues, Treasury function 3: capital structure continued, Dividend policy: dividends and share repurchases.

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Design, Implementation and Risk Aspects of Islamic Financial Products and Services

Module convenor: Professor Simon Archer20 credits

Provides students with the opportunity to study the application of Shari'ah principles and nominate contracts in the design of financial products and services that are Shari'ah compliant, as well as the risk characteristics of these products and services, with particular reference to Islamic banks and insurance (Takaful) undertakings.

Outline content

  • Review of Shari'ah principles - Fiqh al Muamalat
  • Islamic banking products and their basis in nominate contracts - Islamic financing (asset side)
  • Islamic banking products and their basis in nominate contracts - Islamic funds mobilisation (liabilities & capital side)
  • Islamic securities (sukuk)
  • Risk management and capital adequacy aspects
  • Islamic insurance (Takaful):  its basic principles and basis in Fiqh al Muamalat
  • Takaful basic principles and basis in Fiqh al Muamalat
  • Supervisory and regulatory considerations

Islamic Financial Institutions and Markets

Module convenor: INCEIF Faculty10 credits

Develops deeper analytical and theoretical insights of the two main components that constitute the Islamic financial system and a full comprehension of the various financial systems and institutions that operates in the Muslim countries. Students will be able to demonstrate an appreciation of the historical evolutions of financial institutions and markets. Students should also be able to compare and contrast conventional and Islamic Financial Institutions and also identify the similarities and differences between the approach taken by different countries with Islamic Finance Institutions and markets.

Outline content

  • Functions of Financial Institutions and Markets
  • An Overview of the Global Financial System
  • The History and development of Islamic Financial Institutions
  • The Islamic Financial System of Selected Muslim Countries
  • The Islamic Financial Institutions (Covering History & Organisation, Function and Product & Services)
  • The Similarities and Differences of Islamic Financial Institutions in Selected Muslim Countries
  • Islamic Financial Markets (Covering Function & Organisation, Mechanism, Regulators & Regulations and Development)
  • The Monetary Authority / Central Bank.

The Principles of Islamic Commercial Jurisprudence and the Nominate Contracts

Module convenor: INCEIF Faculty10 credits

Provides students with the opportunity to study the juristic basis of Islamic finance, and the nominate contracts that are set out in Islamic commercial jurisprudence (the Fiqh al Muamalat). Students will develop an understanding of the principles of Islamic jurisprudence and its nominate contracts, and how these are applied in Shari’ah compliant financial products and services.

Outline Content

  • The origins of Islamic commercial jurisprudence
  • Prohibitions to be respected in order for Islamic contracts to be valid:
  • Avoidance of riba (pure return on money), maysir (speculation), and gharar (uncertainty or ambiguity of subject       matter)
  • The frequently used nominate contracts
  • Overview of Islamic financial products and their basis in nominate contracts (see Module 255)
  • ShariÂ’ah governance of Islamic financial institutions
  • The IFSB Guidelines on ShariÂ’ah governance

Plus a choice of one of the following modules.

Essentials of Financial Engineering

Module convenor: Dr Marcel Prokopczuk10 credits

The module provides an introduction to the basic techniques employed in Financial Engineering. Students will understand how these methods can be applied to design securities with desired payoff characteristics. They will be able to evaluate complex securities by means of reverse engineering and be aware of possible problems when these methods are applied in real world situations.

Outline content: Introduction to Financial Engineering, cash flow engineering, basic financial products, interest and forward rates, no-arbitrage and the law of one price; Pricing and hedging by replication, major interest rate (IR) swap structures, IR swaps, currency forwards and cross currencies FX-swaps, options; Structured products, introduction and evaluation; Dynamic strategies for hedging and principal protection; Credit markets: CDS engineering, credit indices and CDO's.

International Securities Markets

Module convenor: John Evans10 credits

International Securities Markets applies general valuation risk assessment methods to: fixed income securities, derivatives and markets. It describes the basic characteristics of each fixed-income security, cash and underlying, and develops practical strategies for finding its value and assessing its risk. It also considers how the markets for these securities are related and begins the task of showing how these relationships can be exploited for trading or investment. The analytical techniques introduced in this module are very applied to allow the successful candidate to apply directly to industry the more theoretical market valuation and risk models learned in other core modules taken in the first term. Outline: FIxed income Analysis, Rates Trading and Hedging I, Rates Trading and Hedging II, Credit Analysis and Products I, Credit Analysis and Products II

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Managing Securities Operations

Module convenor: TBC10 credits

Managing Securities Operations is learning about and applying the concept of Operations Management to a financial institution. The course combines teaching about both the technical aspects of securities operations management and theoretical aspects of managing the risks inherent in such as business. It also serves as a base for those interested in further study in operational risk management. The analytics techniques taught in this course serve to synthesise much of the material being taught in the first term core topics of products, markets and institutions by learning how to apply them with regard to management theory. By the end of the module, the student will be able to: Understand how the various securities and derivatives taught in first term courses are traded and operationally managed in a financial institution; they will be introduced to Operations Management theory and how it is applied in a financial institution; they will learn and understand about the many operational market intermediaries that are essential for the investment and trading of securities; they will learn to create and manage securities databases; they will reinforce their knowledge about securities pricing and the various legal and market practices that impact settlement prices; they will understand the full “life cycle of a trade” and how it is managed at a senior management level. They will be introduced to the many and varied new regulatory frameworks being incorporated into the market (Basle II, etc.).

Outline content

  • Essential operational management concepts
  • The operational structure of a securities trading organisation
  • The many types of securities transactions
  • Understanding the trade life cycle - post trade
  • Understanding the trade life cycles - funding
  • Operational risks and how to manage them.

Available learning modes:

  • Full time

New Approaches to International and European Financial Market Regulation

Module convenor: Miss Deepa Govindarajan10 credits

We will challenge current and past thinking on regulatory structures and concepts especially in the context of the recent financial crisis, which provides us with a rich source of information on the pros and cons of various options. One of the key aims to provide students with the broader risk management skills and knowledge required to work within the financial services industry. We will also aim to gain an understanding of the role and working of risk management, compliance, internal audit and allied functions in financial firms.

Outline content

  • Regulatory context- the crisis
  • Regulatory Objectives - What are we trying to legislate for
  • Regulating risk - Prudential and conduct of business issues.
  • Governance and Culture
  • Systems and Controls
  • Compliance, risk management, audit and finance - roles and responsibilities
  • Can regulators rely on these functions - how to test their efficacy
  • Regulatory Architecture
  • International regulatory architecture
  • European regulatory architecture
  • UK regulatory structures
  • Regulation today, key areas of legislation and regulatory tools
  • Basel 2
  • Basel 3
  • Solvency 2
  • UCITS
  • MiFID
  • Regulatory tools

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Topics in the History of Finance

Module convenor: Professor Adrian Bell10 credits

This module aims to provide students with an understanding of the origins of Financial Markets, and with a broader appreciation of the early development of products and innovations in Finance - which many assume are recent twentieth century inventions. By the end of the module it is expected that the student will be able to:
  • Identify and explain key issues and events in the History of Finance
  • Acquire a detailed knowledge of the events through extensive reading in specialised literature
  • Locate and assemble information on the subject by independent research
  • Appraise critically the primary sources and historical interpretations of the subject
  • Organise material and articulate arguments effectively in writing, both under timed conditions and in assessed essays.
 

Outline content

The module will focus on topics that can throw light on the development of financial markets over time. It is not restricted by date, but will draw mainly upon Medieval Europe for its focus. Topics will include:
  • Forward Contracts for the supply of Wool in the 13th Century
  • Early Italian Merchant Banks - Riccardi, Bardi
  • The English Company of 1339
  • The South Sea Bubble - John Law
  • War Finance
  • Tulip Mania

Available learning modes:

  • Full time

Part 2 - Kuala Lumpur

Part 2 Modules at Kuala Lumpur (Optional)

A choice of 30 credits from:

Islamic Capital Markets

Module convenor: INCEIF Faculty10 credits

This course critically examines the nature and theory of Islamic capital markets and the structure of capital market instruments. Topics include the historical development of Islamic capital markets and its role in economic development, Islamic capital market infrastructure, Islamic equities, types of sukuk structures, shari?ah screening process based on DJIM, FTSE GIIS and Malaysia's Securities Commission, Islamic Unit Trusts, Islamic REITs, and Islamic ETF. This course also cover topic on issuing Islamic securities. By the end of this module a student should be able to:
  • List the principles on which the Islamic Financial market operates
  • Critically examine various structures of the Islamic bond (sukuk) market
  • Critically examine the Islamic equity market.
  • Critically examine the screening methodologies and guidelines issued by DJIM, FTSE GIIS, and MalaysiaÂ’s Securities Commission.
  • Evaluate he Islamic financial instruments issued by corporations in raising capital
  • Evaluate the Islamic capital market instruments under various Shariah jurisdictions.
   

Islamic Economics

Module convenor: INCEIF Faculty10 credits

Provides students with a critical understanding of Islamic economy by considering the implications of the application of Shariah law for the economic and financial systems, drawing upon Islamic principles and the philosophy developed by Muslim thinkers. Students will be able to demonstrate a critical appreciation of how theory underpins the ethical basis of Islamic finance.

Outline content

  • An Overview Of Islamic And Conventional Economics And Finance Theories
  • Economic Doctrines of Islam
  • Islamic Economic System
  • Wealth Creation and Mobilization
  • Role of Government in the Economy
  • Consumer Behaviour
  • Behaviour of Producer or Entrepreneur
  • Risks and Returns
  • Islamic Business Ethics
  • Money from Islamic Perspective
  • Economic Thoughts of Muslim Thinkers

Available learning modes:

  • Full time

Research Project

Module convenor: Professor Charles Sutcliffe20 credits

The aim of the research project is to allow students to define and execute a piece of research in finance on a topic of their choice, with direction from an academic supervisor and with assistance from a doctoral student support supervisor. The Learning Outcomes of this module are:
  • Successful completion of the research project requires students to define and execute a piece of research in finance.
  • They will be required to seek out and to critically evaluate published literature in a particular field.
  • Students will improve their report-writing skills, learning how to structure their study, and how to place their findings in the wider context
 

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Wealth Planning and Management

Module convenor: INCEIF Faculty10 credits

Introduces students to the best ways of managing, investing and distributing wealth in accordance with the Islamic laws. This module also discusses the issues related to wealth planning such as tax matters, relevant institutions and the code of conduct for professionals involved in this industry. Students will be able to compare the similarities and differences between conventional and Islamic wealth management concepts.

Outline content

  • Wealth Creation and Mobilisation from Conventional and Islamic Perspectives
  • Nature and Scope of Wealth Planning
  • Wealth Allocation Process
  • Investment in Real Estate
  • Investment in Securities
  • Insurance and Takaful Scheme
  • Estate Planning
  • Retirement Planning
  • Taxation Planning and Management
  • Issues Related to Wealth Planning and Management

Available learning modes:

  • Full time

Come and see us

Why not make an appointment to come and visit. You can chat with our Admissions and Careers teams and a member of academic staff. Email admissions@icmacentre.ac.uk or call +44 (0)118 378 8239.

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