Introduction
The CFA program was first administered by the Institute of Chartered Financial Analysts (ICFA), one of the Institute’s predecessor organizations. In June 1963, after successfully passing the first CFA examination, 268 securities analysts emerged as the inaugural class of CFA chartered holders. This distinguished group of investment professionals took an inherent risk of failing an exam that dealt with subjects on which they were already presumed to be the experts. They put aside their self-interests to establish standards of competence and integrity for the profession of investment management.
Some 40 years later, the CFA charter has grown far beyond what any members of its inaugural class could have predicted. Since 1963, the CFA Institute which was formed by the combination of the ICFA and the Financial Analysts Federation in 1990, has administered nearly 400,000 CFA examinations and more than 35,000 investment professionals have earned the right to use the charter. Our clientele includes many well-known executives from the investment/banking industry, other industrial corporations and the public sector.
Course Objectives
In the competitive, rapidly evolving profession of investment management, few achievements will say more about your commitment to knowledge and high ethical standards than earning the right to use the CFA designation. Employers understand the dedication that the CFA program entails, which is why they often make the CFA charter an eligibility requirement for senior-level positions and, frequently, are willing to pay for their employees to participate in the program. The broad based curriculum of the CFA program compels you to build a working knowledge of principles across core areas of the investment industry, from portfolio management and asset valuation to derivatives and quantitative analysis. Virtually no other designation within the profession of investment management carries as much prestige as the CFA charter. The employers with
the highest number of CFA charterholders are Merrill Lynch, Lehman Brothers, Morgan Stanley, Goldman Sachs, Bank of America, Citigroup, Credit Suisse Group, J.P. Morgan Chase, UBS etc.
Entry Requirements
■ A Bachelor’s degree or equivalent. The degree need not be in Finance. An applicant must receive a Bachelor’s degree no later than 31 December of the current exam year to qualify for entrance.
■ Candidates who are not holders of a Bachelor’s degree must have at least 4 years professional experience to be considered.
■ Complete, sign, and return the Registration and Enrollment Form by 1st February the latest.
■ Pay the required fees to the CFA Institute.
■ Complete, sign, and return to the CFA Institute a Professional Candidate Inquiry and Candidate Responsibility Statement.
Course Duration
A minimum of 3 years is required (1 year per level). Candidates cannot proceed to the next level without successfully completing the previous level.
No exemptions are awarded.
The CFA Course Structure
The material covered in the CFA education scheme is designed to reflect a wide body of knowledge. That keeps pace with the ever-changing dynamics of the global investment industry. The following general topic areas are covered:
■ Ethical and Professional Standards
■ Quantitative Methods
■ Economics
■ Corporate Finance
■ Accounting
■ Global Markets & Instruments
■ Analysis of Derivatives
■ Portfolio Management
■ Analysis of Equity Investments
■ Analysis of Alternative Investments
■ Analysis of Fixed Income Investments
■ Asset Valuation
The Level I curriculum and examination focus on tools and concepts that apply to investment valuation and management. Level I also includes an overview of the process of asset valuation and portfolio management.
The Level II curriculum and examination deal with asset valuation. Candidates must be able to apply the tools and concepts emphasized at Level I - including economic analysis, quantitative techniques, and accounting – in analyzing and valuing investments, and should also have a thorough understanding of capital market theory and industry and company analysis.
The Level III curriculum and examination explore in greater depth the discipline of portfolio management. Candidates must demonstrate a working knowledge of
the portfolio management process, from calculating investor constraints, objectives, and capital-market expectations to making asset-allocation decisions.
Important Dates
Application Deadline: Sempteber and February of each year. The registration fee varies depending on the month in which the application is submitted to the CFA Institute.
Exam Sitting: June of each year and a December sitting which is offered at selected locations.
Examination Rules
1. Candidates may not sit more than one level per year.
2. Candidates are given 7 years to complete all three levels of the examination from the date of their initial registration and given that they have taken examinations at least once.
3. Candidates must use a specific type of scientific calculator during examinations (for more information please contact the CFA Course Leader, or the CFA Institute website on www.cfainstitute.org).
4. Examination results are reported as pass or fail (usually two months after the exam session).