Cambridge University Reporter


report

Joint Report of the Council and the General Board on the introduction of a degree of Master of Finance (M.Fin.)

The COUNCIL and the GENERAL BOARD beg leave to report to the University as follows:

1. In this Report the Council and the General Board propose the introduction of a Master of Finance Degree, titled the M.Fin., to be offered by Judge Business School (JBS). The proposal has the strong support of JBS's Advisory Board, the Faculty Board of Business and Management, and the Council of the School of Technology. It is consistent with the strategy for JBS, previously approved by the Council of the School and the General Board in 2005, to introduce a specialized Master's programme in Finance.

2. The proposed programme would meet an evident demand from the financial sector for highly trained Cambridge recruits. It would also permit a step change in JBS's overall activity in finance, a flagship area of expertise for any leading business school. This would have benefits in creating critical mass in research activity and in strengthening finance teaching within JBS's other programmes. The programme would focus on post-experience training for finance specialists, a model successfully used by other leading European business schools. It would be more specialized and advanced than programmes offered by most leading US business schools, and this, coupled with Cambridge's reputation, should make it particularly attractive internationally. Market research undertaken by JBS, in consultation with members of its Advisory Board, amongst leading city firms has found unqualified support for the proposal, with active engagement at the highest level in major banks, and an eagerness to send staff onto the proposed programme, to recruit from it, and to contribute to curricular design and delivery. This positive response is helped by two features of the City of London. First, Cambridge is probably second to no other university in the number of its alumni in top City positions. Secondly, the City is achieving a pre-eminent position in many areas of global finance. Demand for talented and highly trained staff is, accordingly, extremely strong. The new degree would build on the success of two existing programmes in JBS, the Master of Business Administration and the M.Phil. course in Finance. These programmes are already significantly over-subscribed by high quality applicants and JBS expects the new programme to be similarly attractive to applicants of the highest quality, albeit from different backgrounds.

3. The central bodies are persuaded that, in order to indicate the particular characteristics of the proposed course and to distinguish it from other courses offered within JBS, a different degree title is necessary. The M.B.A. title is too general; and the M.Phil. (in Finance) title suggests an academic research orientation, and an emphasis on pre-experience academic training. The degree of Master of Finance (or Masters in Finance) has a well known meaning across leading business schools and amongst prospective applicants. The world market leader, offered by London Business School, is called a Masters in Finance: Master of Finance is the nearest equivalent within the normal Cambridge pattern of titles.

4. The course would serve a purpose different from the M.Phil. programme in Finance and the M.B.A. The former is intended to provide research-led training for recent graduates and focuses on research methodologies and problems relevant to a career in academic research, rather than in professional finance. Unlike the proposed M.Fin., it does not seek to build on the professional experience of students or to include project work within the financial sector. The M.B.A., whilst catering for students who do have some years of professional experience, necessarily involves training in the several disciplines of business, with finance being a relatively minor component. The proposed programme would combine much of the subject matter of the M.Phil. course with the professional training focus of the M.B.A. It would provide extensive training in finance for students who have completed at least two years of professional work and would equip them for returning to high-level careers in the financial sector.

5. The programme would extend over one academical year. It would comprise compulsory core courses, electives, and project work. Compulsory core courses, each of up to 32 hours of lectures and classes, would be provided in the principles of finance, financial reporting and analysis, corporate finance, and financial products. The assessment for each of these courses would include written examination. A menu of electives, which would allow students to specialize, would include investment management, hedge funds, fixed income analysis, credit analysis, derivatives, mergers and acquisitions, and private equity. Further electives would be offered each year depending on developments in the subject and on students' interests. Electives would be assessed by essay and/or written presentations and/or written examination, depending on the content of the course and its intended learning outcomes. Students would then undertake projects involving financial firms or in the financial departments of general businesses, where a member of JBS's academic staff and a manager from the host business would both be involved in supervision. This model of project management has been well developed within the M.B.A. programme. There would be systematic development of writing, quantitative, and presentation skills, and training in negotiation. A programme of expert talks would explore aspects of working in the financial sector; and learning would be stimulated by structured group exercises and seminars devoted to controversial issues and new developments in finance. Overall, teaching would be very intensive, with more than twice the hours applying in JBS's M.Phil. programmes.

6. To gain admission successful applicants would have to meet the University's normal academic requirements for graduate entry, as well as possess appropriate professional experience. As with its M.B.A., JBS would administer the process whereby successful applicants secured College membership. At least two External Examiners would be appointed. JBS standard procedures would be adopted for collecting, and responding to, student feedback on lecture courses and every aspect of student support. The programme would be subject to normal review by the General Board, for example through their scrutiny of External Examiners' reports and their schedule of learning and teaching reviews, and to regular review by the leading accreditation organization EQUIS, the European Quality Improvement System. (EQUIS periodically send a team of academic experts to review all written course materials, to interview staff and students, and to present a written report and decision on accreditation.)

7. JBS would provide the full range of non-academic support which leading business schools offer M.B.A. and other professionally experienced students. For example, dedicated marketing and admissions services would be needed and provided. The career needs of post-experience students would also require dedicated JBS support, as is already the case with the M.B.A. Experience of that degree shows that much higher levels of provision in other areas, for example, documentation, facilities, IT support, are required (and offered by other leading business schools) than for undergraduate or pre-experience postgraduate students. JBS has extensive experience of such demands and, in meeting them, would achieve synergies with its existing M.B.A. provision.

8. Providing such intensive teaching and support services would demand substantial resources, and the programme would require a fee comparable to the M.B.A., presently of the order of £28,000.

9. The proposed course would necessarily be resource intensive. JBS projects an intake, in steady state, of 75 students. (The intake to its M.Phil. programme would be reduced by c. 25.) With a target intake of this size, projections show that the programme would be self-financing. However, in the start-up phase, JBS accepts that intakes may be less than its target. It would be unwilling to compromise on admissions standards, and there may accordingly be a shortfall in the early years of the course. JBS is planning for this, and is seeking external funding. Already over £2m towards the course has been committed by leading City figures and institutions. Further donations are likely from the finance sector, as well as many offers, already received, of benefits in kind, including scholarships, sponsorship of students, proposed projects, and contributions of specialists speakers.

10. In order to support access to the programme, and in awareness that some talented recruits will come from less wealthy areas of the world or with prestigious but fees-limited scholarships, JBS would introduce a scheme of bursaries, to ensure that the most able students are admitted, irrespective of their financial backgrounds.

11. Regulations proposed for the M.Fin. Degree are appended as the Annex to this Report. Consequent amendments to Statute B and to certain other regulations are also necessary and are set out in the recommendations.

12. The Council and the General Board accordingly recommend:

I. That, subject to the approval of her Majesty in Council, the Statutes of the University be amended as set out below and that these amendments be submitted under the common seal of the University to her Majesty in Council for approval:

Statute B

Chapter III

DEGREES

Section 1(b).

By inserting after the word 'Studies' the word ', Finance'.

Section 3.

By inserting in line 3 after the word 'Studies,' the word ', Finance'.

Section 5(c).

By amending the section so as to read:
(c) no one shall be admitted to the degree of Master of Finance or of Philosophy unless he or she has complied with such conditions of residence as shall have been approved by Ordinance;

II. That, if Recommendation I is approved, regulations for the degree of Master of Finance, as set out in the Annex to this Report, be approved with effect from 1 October following the date on which the amendments of Statutes contained in Recommendation I take effect.

III. That, if Recommendation II is approved, certain regulations be amended, with effect from the same date, as follows:

A. Regulations for University Composition Fees (Statutes and Ordinances, p. 159)

TABLE OF FEES

By amending the entry for the M.B.A. so as to read:

M.B.A.†, M.Fin.*:

*Three terms in residence only.

SCHEDULE

By inserting after the entry for the M.B.A. the entry:

M.Fin. Degree J J J

B. Regulations for the Forms of Presentation for Degrees (Statutes and Ordinances, p. 181)

By amending the heading of the paragraph relating to Master's Degrees so as to read:

For the degree of Master of Arts, Business Administration, Education, Engineering, Finance, Law, Letters, Natural Sciences, Philosophy, Science, Studies, or Surgery

C. The Schedule appended to the regulations for Forms of Presentation for and Admission to Degrees (Statutes and Ordinances, p. 183)

By inserting in the second group of degrees after the entry for the M.B.A. Degree:

For the M.Fin. DegreeMagistri in re pecuniaria

D. Regulations for the order of Seniority of Graduates (Statutes and Ordinances, p. 183)

By inserting above the entry 'Masters of Education' the entry 'Masters of Finance'.

E. Regulations for Academical Dress (Statutes and Ordinances, p. 184)

By inserting the following entries after the entries for the M.B.A. Degree in each case:

Black Gowns

M.Fin.: the M.A. gown but with four buttons joined by cords forming a diamond on the upper edge of each arm slit;

Hoods

M.Fin.: of black cloth lined with light-green silk;

F. Schedule to the regulations for the Review Procedure for Examinations for Undergraduate and Certain Other Qualifications (Statutes and Ordinances, p. 222)

By inserting in the Schedule, after the entry for the M.Ed. Degree, the entry:

M.Fin. Degree

G. General regulations for Examiners and Assessors (Statutes and Ordinances, p. 224)

By inserting in group (c) of the Schedule after the entry 'M.Ed.' the entry 'M.Fin.,'.

H. Regulations for Payments to Examiners and Assessors (Statutes and Ordinances, p. 225)

Regulation 3(a).

By inserting in the third line after the entry 'M.Ed.' the entry 'M.Fin.,'.

6 August 2007 ALISON RICHARD, Vice-Chancellor J. COMERFORD VERONICA SUTHERLAND
 ROSS ANDERSON S. J. COWLEY LIBA TAUB
 Z. BARANSKI S. ENSOR-ROSE JOAN M. WHITEHEAD
 NIGEL BROWN D. W. B. MACDONALD RICHARD WILSON
 WILLIAM BROWN G. A. REID S. J. YOUNG
 M. CLARK DAVID SIMON 
    
11 July 2007 ALISON RICHARD, Vice-Chancellor PHILIP FORD MELVEENA MCKENDRICK
 JOHN BELL RICHARD HUNTER PATRICK SISSONS
 TOM BLUNDELL KATHERINE LINDER I. H. WHITE
 P. COULTHARD D. W. B. MACDONALD 

 

ANNEX

Master of Finance

1. A candidate for the Master of Finance Examination must be approved by the Degree Committee for the Faculty of Business and Management.

2. The Degree Committee may approve as a candidate for the Master of Finance Examination any student who has satisfied the Committee that by reason of previous study he or she is qualified to engage in postgraduate work in Finance.

3. Applications for approval under Regulation 2 shall be sent to the Secretary of the Degree Committee so as to arrive not later than 31 March next preceding the date on which the applicant wishes his or her candidature to begin, provided that the Committee shall have power to consider applications submitted after that date.

4. The Degree Committee for the Faculty of Business and Management shall publish, not later than the end of the Easter Term each year, a list of subjects in Finance for the academical year next following. The list shall be divided into two groups, Group 1 (core subjects) and Group 2 (specialist subjects).

5. The Master of Finance Examination shall consist of three sections, as follows:
(a) Written papers
 Written papers, each of three hours' duration, prescribed by the Faculty Board of Business and Management. Each candidate will be required to take no fewer than two written papers on subjects from Group 1.
(b) Course-work
 Such course-work as may be prescribed by the Faculty Board from time to time.
(c)Project work
 One or more reports on project work, which shall be submitted in such form and assessed in such manner as the Faculty Board may determine.

The Examiners shall have power to examine a candidate viva voce on any or all of the three sections of the examination (a)-(c).

6. The Faculty Board shall have power to issue supplementary regulations determining the scope and manner of assessment of the examination, and shall be empowered to amend such supplementary regulations from time to time as they may think fit, due care being taken that sufficient notice is given of any change.

7. The Faculty Board shall nominate such number of Examiners and Assessors as they may deem sufficient, including a resident member of the Senate as Chairman of Examiners.

8. The names of candidates who satisfy the Examiners shall be arranged in alphabetical order in a single class. The Chairman of Examiners shall communicate the marks of all candidates to the Registrary.

9. While following the course of study leading to the Master of Finance Examination a student shall pay the appropriate University Composition Fee.

10. A student who has completed the course of study and has satisfied the Examiners in the Master of Finance Examination shall be entitled to proceed to the Master of Finance Degree.

11. A student who has taken the Master of Finance Examination shall not be entitled to count any part of the period during which he or she has been a candidate for that examination towards a course of research for the degree of Ph.D., M.Sc., or M.Litt.