Programme Specification: MSc Finance and Economics
1. Awarding Body
2. Details of accreditation by a
professional/statutory body
eg ESRC; BPS etc)
3. Name of final award
4. Programme Title
5. Duration of the Course
6. Based in the Department/Institute:
7. Relevant QAA subject benchmark
statements
8. UCAS Code/application code
9. First written/Last amended
LSE
N/A
MSc
Finance and Economics
Full-time 10 months
Department of Finance
N/A
LN43
8th Nov 2001 / 13th Feb 2003/ Dec 2010
10. The programme aims to:
offer the following benefits:

The opportunity to study in one of the most highly-rated Departments in the subject area in
the world, both for its research and its institutional links.

Exposure to world-class social scientists, business leaders, politicians, and modern thinkers
who visit and/or teach at LSE

Research-led teaching drawing on the School's strengths in economics, finance and
econometrics to provide students with a rigorous understanding of financial markets,
grounded in financial economic theory and econometric practice.

Preparation for a variety of challenging careers in a wide range of countries. The financial
economics emphasis of the programme is particularly attractive to investment banks, and to
the financial services sector more generally, as well as for providing a rigorous training for
postgraduate research.
A new 12-month variant of the full-time degree—MSc Finance and Economics (Research)—offers
research training for PhD study and recognition has been awarded under the ESRC’s new ‘1+3’ model.
11. Programme outcomes: knowledge and understanding; skills and other attributes
Knowledge and understanding:
At the end of the programme, students will have a thorough understanding of the key aspects of risky
investments and asset pricing, option and derivatives pricing, and portfolio management. They will
have had a thorough exposure to econometric methods, including time series analysis, with
applications to financial models and data. They will have also studied micro-economic (including
industrial organisation) or macro-economic theory, and will have been able to take optional modules
covering corporate finance, risk management, market microstructure, financial intermediation, and
international finance.
Subject specific skills: At the end of the programme, and to the appropriate extent indicated by their
level of award, students should demonstrate:
appropriate understanding of and ability to apply mathematical, statistical and economic concepts;
appropriate ability to communicate knowledge and understanding of the economics of financial markets,
based on a critical evaluation of related theoretical and conceptual frameworks and of empirical
evidence;
appropriate ability to apply advanced analytical skills to interpret and manipulate financial and other
numerical and econometric data and to recognize the limitations of these techniques
Cognitive abilities and non-subject specific skills: At the end of the programme, students should be
able to demonstrate:
appropriate ability to evaluate arguments and evidence critically
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appropriate ability to locate, extract, analyse, and draw reasoned conclusions from multiple sources—
including electronic sources—of appropriate literature and relevant data
appropriate ability to acknowledge and reference sources
appropriate capacities for independent and self-managed learning
appropriate use of communications and information technology, such as spreadsheets, word-processing
and on-line databases
appropriate communication skills such as ability to present quantitative and qualitative information,
together with analysis, argument and commentary, in an appropriate form
ability to work in groups and other appropriate inter-personal skills, including oral and written presentation
skills
Information relating to careers can be accessed here
12. Teaching, learning and assessment strategies to enable outcomes to be achieved and
demonstrated
Teaching and learning strategies:
This programme provides research-led teaching which aims to bring students to the forefront of
practice and theory in their selected areas of specialisation. The teaching is of an advanced nature and
covers internationally significant conceptual and technical developments in finance, financial
economics and econometrics. Students acquire their detailed knowledge and understanding of the
course, and their subject specific skills, through a combination of lectures, problem classes and
progression to guided independent study, reinforced by the opportunity to meet teachers and their
supervisors one-to-one in office hours.
Course reading lists include not only leading textbooks but references to current research literature and
primary sources, including relevant examples from current practice, official and professional policy
documents, websites and other electronic data sources.
The work for the compulsory dissertation (equivalent to a half-unit) may take the form of:
(1)
(a) analysing the relevant publications and other source material on a particular topic; and
(b) writing a critical survey cum commentary, indicating clearly the main issues and the
limitations;
or
(2)
investigating and reporting on a selected problem, either by some small-scale
empirical research, or by using information derived from secondary sources.
The report must show ability to separate the important from the less important, to sustain reasoned
argument and draw conclusions, and to arrange the whole in an organised manner. The report must be
presented in word-processed format.
Academic teaching staff are leading-edge researchers who give students an insight into current thinking
and recent developments in their fields. Several teachers and supervisors are also involved in policy
advice and formation and give students insights into real-world developments in finance, economics and
econometrics and the forces that shape them.
Students have the opportunity to acquire hands-on experience of CIT as well as familiarity with
electronic data sources and databases.
Assessment strategies:
Summative assessment of knowledge and understanding and of subject-specific skills is primarily by 3hr
unseen examinations at the end of each year, together with the dissertation. For some options
coursework project assessment amounts to 25%-30% of the final course grade (from 2001-02).
Formative assessment is through class assignments, including numerical and computer-based
exercises, critical essays and commentaries, and individual and group presentations, for example on
case studies and mini-projects or on professional publications.
Cognitive and non-subject specific skills are developed in parallel with the development of—and through
the same teaching and assessment structures that are designed to achieve the appropriate levels of—
the knowledge and understanding and subject specific skills described above.
Students are also encouraged to participate in the Departmental MSc annual residential weekend for
staff and students, and in the Student Society and the Staff:Student committee (which meets once each
term).
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13. Programme structures and requirements, levels, modules and awards.
See the MSc Finance and Economics programme regulations
Additional Information
14. Criteria for admission to the programme

Entrants must be numerate and have at least a good upper second class honours degree,
preferably in economics, from a UK university or have reached a similar standard in an overseas
degree, having taken courses in economic theory, econometrics, and preferably finance. A GRE
or GMAT test score, with strong performance in the quantitative segment (above the 85th
percentile) is required. (See the introductory section in the LSE Graduate Prospectus on
GMAT/GRE.)

Non-English speakers also have to meet the School’s standard requirement for English language
for all graduate programmes - IELTS 6.5, TOEFL 603 in the paper test, 263 in the computerbased test.
15. Indicators of quality
 Applications for places: 1466 applications for 96 places in 2002
 RAE rating (2001): Accounting and Finance: 5*A / Economics: 5*A
 Faculty in the Department of Accounting and Finance are affiliated with two major ESRC funded
research centres: the Financial Markets Group (‘FMG’) and the Centre for Analysis of Risk and
Regulation (‘CARR’). Some Economics department staff are also attached to FMG
 The Department is recognised as an FT+3 research training outlet by the ESRC. The degree has
received FT1+3 recognition from the ESRC
 The LSE Careers Centre website provides data on career destinations of LSE graduates.
16. Methods for evaluating and improving the quality and standard of teaching and learning
The Department’s additional quality evaluation procedures are coordinated through its Teaching
Quality Enhancement Panel. Primary responsibility lies with individual course leaders, course
lecturers, class teachers, and supervisors and their own self-evaluation is focussed primarily through
the Department’s annual course reviews and peer-teaching observations, the TQARO student
questionnaires and the School’s and the Department's mentoring and staff appraisal processes. Other
Departmental structures and processes include:

ad hoc reviews such as the recent review of postgraduate finance courses, which has led to the
designation of the different specialist pathways and a wider choice of half-unit modules in
response to student demand .

the annual Examination Sub-Board meeting for the MSc Finance and Economics and the External
Examiner's reports. (There is a specially constituted joint examination sub-board and designated
external examiner for this degree.)

the termly Departmental meeting

the responsibilities of the Programme Director and of the Coordinating Committee for the MSc
Finance and Economics programme

student feedback and consultation through the MSc Finance and Economics staff-student
committee (SSC).

The Teaching and Learning Centre is available to monitor and observe teaching and offers
constructive advice on how to improve the standard of teaching and quality.

Departmental TLAC review once every five years.

The Teaching Learning and Assessment Committee which regulates all aspects of teaching
quality;

The Graduate Studies Sub-Committee which oversees all graduate programmes and ensures that
significant changes to programmes and courses pass through a sequence of formal stages, so that
curricular changes are appropriate and compatible with other developments.
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