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Read a couple of CFA FAQs (still in development)
The program sponsored by the Association for Investment Management & Research, this is one of the most popular certifications sought by individuals in todays market within the finance and banking industry.
Split into 3 levels, the requirement is the completion of all
three before gaining the CFA designation, as well as attaining 3 years of
work experience as a basic prerequisite.
With the economic downturn over the past few years, there has been a significant
influx of candidates looking to build up their resumes and knowledge through
the taking of the CFA, which some have argued has led to the degredation of
the certification and a fall in weighting for the designation.
Saying that, it must be pointed out that the CFA is no easy journey, even for a postgraduate or an MBA in finance as there are suggestions that even some professors in finance find it difficult, particularly in levels 2 and 3.
Topic Outline: (Level 1)
1. Ethical & Professional Standards
2. Quantitative Methods
3. Economics
4. Financial Statement Analysis
5. Corporate Finance
6. Global Markets & Instruments
7. Equity Investments
8. Debt Investments
9. Derivative Investments
10. Alternative Investments
11. Portfolio Management
The topic outlines for Level 2 & 3 follow a similar guideline as above with the exception that certain aspects carry a greater weighting and some carry less weighting in subsequent examinations.
Furthermore, Level 2 & 3 currently include an essay portion on the exam (which is now currently being re-assessed by the AIMR for suitability in assessing candidates and may be removed in the future)
Suitability:
If you are seeking to build a solid groundwork for a career in finance and banking or related industries, the CFA could be a useful asset to have. Many recruiters at asset management and investment houses now prefer an applicant to have a good understanding within finance, and many have noted the requirement of at least a passing level 2 before being considered for an analyst position.
On the other hand, the CFA program in its own right is an excellent form of learning; covering most of the aspects required for both students as well as analysts.
Conclusion:
The CFA is one of the largest and still growing designations today which is not considered a big 4 'profession' by the global community (by that I mean, Accountants, Lawyers, Doctors, Architects). Nonetheless, it has become one of the definitive norms for the investment community and is increasingly one of the prerequisites for positions within many firms. Some argue that the designation is not mathematical enough and some argue that there is too much abstract maths to be completely useful.
A study by the AIMR does shed some light on the benefits which come with having the CFA designation. Two striking features include:
Source: AIMR
There is a strong indication across the industry that the CFA will provide value added in more than one form for an individual taking it. For more details, visit the AIMR website
- Note: All data and factual information was taken from the AIMR website and AIMR does not endorse nor contribute to this webpage.