CFA Charter as a Professional Qualification: Process & Prospects

Presenter: Md. Nafeez-Al-Tarik Founder of Professional Finance Studies

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Introduction

March 2005: Take admission in Dhaka University (Finance Dept) June 2009: Passed CFA Level 1 Exam December 2009: Passed BBA (CGPA 3.83) June 2010: Passed CFA Level 2 Exam July 2010: Take admission in Regular MBA May 2011: Joined in RBIMCO (Manage Foreign Fund ) June 2011: Passed CFA level 3 Exam June 2011: Passed MBA (CGPA 3.70) November 2011: Passed FRM (Financial Risk Manager) Part 1

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Investing in Yourself

THE CFA CHARTER

(Todays Gold Standard for tomorrows World) Source: The Economist, June 2010 Investing in yourself involves making decisions that distinguish you from others in the crowd

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PROSPECTS

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More than 130 distinguished universities around the world have incorporated a majority of the CFA Program curriculum into their curriculam.

Regulatory bodies in 22 countries and territories waive certain licensing requirements for CFA charterholders and for certain levels of the program.

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Facts and Statistics

Number of members: 107,028 Countries with members: 138 Number of societies: 135 Countries with societies: 58 Number of Charterholders: 97,890

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Why People Choose CFA?

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Legal and Other Recognition

The Society of Actuaries (SOA) granted the credit of Validation by Educational Experience (VEE) New York Stock Exchange (NYSE) granted CFA charterholders the option to take only the portion of the Supervisory Analyst examination dealing with exchange rules on research standards and related matters. CFA charterholders are recognized by UK's Securities & Investment Institute (SII) as the equivalent level of SII full membership or fellow membership

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Legal and Other Recognition

CFA charterholders are recognized by HK's Hong Kong Securities Institute (HKSI) as the equivalent level of HKSI full membership (MHKSI) CFA charterholders are recognized by Professional Risk Managers' International Association (PRMIA) as the equivalent of passing first two required exams. Exemptions are available for various modules in the South African Registered Persons Examination

So, Think!!
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Jobs and Opportunities

Do not need to worry about finding jobs.

For example, Large financial institutions such as ABN AMRO, Citigroup and Deutchse Bank employed many charter holders in their organizations for their high managerial positions.

all CFA graduates had undergone the same course and exams No problem for you to adapt to the new working environment in overseas.

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Expected Salary

Fresh with No Experience: Around $50K-$60K Two-Five Years Related Experience: $60K-$80K Five-Ten Years Related Experience: $80K-$100K Ten-Twenty Years Related Experience: $120-$200K

The amount is excluding bonuses you might get, other various benefits, and the chance to deluge in expensive fine dining!)

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So, Are you Mulling over it?

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But There are Challenges too

The working hours will be long. There is a limited amount of mergers, leveraged buyouts and IPOs will happen in a year, so there are not many vacancies for this job. a lot of people left the investment banking industry only after a couple of years. Because of the intense stress related to the job.

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although this is no doubt a great CFA careers opportunity as you are making a lot of income, you will have a hard time spending them due to your long hours of working!

SO, Be Careful!!!!

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Some Job Advertisements

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Investment Analyst

Fidelity National Financial, Inc. (NYSE: FNF) Requirements: Possess background and experience in financial statement analysis. Requires a bachelors degree in Accounting/Economics/Finance or equivalent. At least 2 years of experience in the field or in a related area. MBS and/or CFA/CPA or progress towards highly desirable.

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Financial Officer
Employer: The World Bank Location: Washington, D.C., United States Selection Criteria: Chartered Accountant or MBA or MSc (Finance) degree required. Relevant experience desired. CFA designation would also be an asset. Proficiency in Visual Basic programming / writing macros in Excel required. Proficiency in Crystal reports would be an advantage. Strong verbal and written communications skills. Full proficiency in Microsoft Windows applications, namely Excel, Access, Word and Power Point. Demonstrated ability to learn new technology quickly and effectively use it for maximum productivity. Knowledge of SAP will be an advantage. Excellent analytical skills. The ability to develop and apply methodologies to test and explain changes in financial trends and results using computer assisted techniques
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Focus Direct
Location: Dubai, UAE Our client, a Private Equity firm in the UAE, have an immediate requirement for a Financial Analyst to join their team in Dubai. Requirements Bachelors in Finance

Qualified CFA, Minimum Part II, preferable Part III

2-3 years of experience in a similar role Experience in using various Financial Analysis Models Exposure to working in a Private Equity or Investment firm is essential
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Senior Relationship Officer (Credit Analyst)

Location: Dubai, Abu Dhabi or Doha Requirements: To be considered you will have 2+ years experience in a Credit Analyst role within Banking. You will be degree qualified in Accounting / Finance or related field. CFA / CA would be advantageous although not a prerequisite. Please note we can only consider Korean or Mandarin / Cantonese speakers for this role.

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Investment Risk Analyst

Macquarie Funds Group Location:Sydney Requirement

hold appropriate tertiary qualifications in Business, Finance, Economics or Law; CFA or Masters in Finance will be highly regarded although a willingness to complete this will be viewed favourably possess Intermediate/Advanced Excel knowledge; VBA and MS Access will be advantageous hold a stable yet progressive work history in a comparable role be detailed, methodical and accurate in your work approach; analytical by nature and able to work to meet tight deadlines enjoy working autonomously yet be a strong and effective team contributor across all measures; need to be pro-active, confident and able to demonstrate sound verbal and written communication skills to allow you to work and interact with stakeholders of all levels.

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Financial Risk Manager

Reporting to the Head of Enterprise Risk Management (ERM), you will be responsible for developing and coordinating strategies and policies to manage AIA Singapores financial risks. Pre-requisites: Degree Holders in Actuarial Science /Economics/Finance/Financial Engineering or equivalent disciplines 5-7 years working experience in financial risk management. Good working knowledge of risk management frameworks, credit risk, market risk, liquidity risk, and understanding of risk modelling, stress testing and investment activities Financial risk management or related professional qualifications will be an advantage. (Example : CFA, Global Association of Risk Professionals (GARP) FRM program, PRMIA (Professional Risk Managers International Association) Experience in insurance industry preferred Good interpersonal skills and presentation skills. Problem solving mindset.

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CFA or MBA

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CFA or MBA
CFA or MBA cost

CFA program cost way cheaper than the MBA.

You can get through the CFA program spending less than $3,000. If you assume that you pass each exam on the first try and register in a timely manner, the total fees will be $2,300. Well, that's less than one course costs in most MBA programs.

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CFA or MBA
CFA or MBA Difficulty Level

CFA is more challenging in this aspect. It's a pretty daunting program and it takes a considerable amount of time to get through. Students need to sit through for a total of 6 hours in a day during the final exam.

So, if a student does not have the stamina or endurance, he or she will not pass the exam.
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CFA or MBA
CFA or MBA Specialization or Generalization The CFA and the MBA as being very complementary. The CFA is a very specialized credential that focuses really very deeply on 10 investment-related topics. The MBA is more of a generalist designation. You are not able to get as in-depth in the finance topics in an MBA program as in the CFA curriculum. But certainly for those who are in the running for a management position later in their careers, the MBA can be quite useful.

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CFA or MBA
CFA or MBA Find out which of them gives more value

the decision to go after the CFA or MBA designations should be also based on the availability of time a student have and the difficulty level of the exam. Students should also consider which of these certifications will give them, the most value, both personally or professionally.

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In conclusion, choosing to become a CFA is definitely one of the best things you could do as you not only will improve your financial knowledge, you too can obtain a higher CFA salary.

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Process
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Essential Requirement

You need to comprehend comprehensively the professional conducts as well as ethical behaviors under the CFA requirements set by the CFA Institute. You could be in your last year of your current degree studies. Or you could have a mixture of both college and work experience that adds up to 4 years and above. Also take note if you register as a final year bachelor degree student, you are not permitted to sign up for the CFA Level 2 exam until you have obtain your degree to meet with the CFA requirements set by the CFA Institute. And when your degree is finally awarded to you, you need to inform the CFA Institute that your degree indeed has been certified. you must possess a legitimate international passport before you can enroll for the CFA program. This is the most recent among all of the CFA requirements.

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Complying Code of Ethics

You must by all means follow the Code of Ethics and Standards set by the CFA institute.

If you fail to so, your CFA designation will be taken away from you.

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Fees

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Subjects and Weight

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Very Important Question

Is having a CFA DEGREE a gurantee for success? Will it bring a lot of money??

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The Answer

NOT NECESSARILY !!!

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Some Comments from leaders in Asia Pacific Region

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Some Comments from leaders in Asia Pacific Region

Are there certain skills you consider useful in your job? Being able to multitask, have good interpersonal and professional, communication skills. Have good analytical skills which are supported by creativity to find solution which fulfll your clients needs. How has the CFA charter helped you? The reputation of the CFA charter and CFA Institute support me when Im dealing with potential clients. Also, I believe in bringing the highest quality of services to my clients, as well as complying with the CFA Institute Code of Ethics and Standards of Professional conduct.

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Some Comments from leaders in Asia Pacific Region

Learn CFA, FRM & FINANCIAL MODELING at PFS

Some Comments from leaders in Asia Pacific Region

Are there certain skills you consider useful in your job?

As we primarily invest in listed equities, remaining constantly updated and informed about economic indicators and the business fundamentals helps us to make investment decisions.

How has the CFA charter helped you?

The CFA charter helped me immensely by equipping me with the analytical tools and the mind-set necessary to succeed in investment management

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Some Comments from leaders in Asia Pacific Region

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Some Comments from leaders in Asia Pacific Region

What are the major challenges you face in your position? My current role involves analysing companies in multiple industries under very tight deadlines. It is a challenge to understand the key drivers of different industries and companies by sifting through the numerous information sources under such time constraints. How has the CFA charter helped you? The CFA curriculum gave me a rigorous grounding in industry analysis and company valuation. These are critical elements in the process of understanding whether a company is a worthwhile investment.
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Some Comments from leaders in Asia Pacific Region

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Some Comments from leaders in Asia Pacific Region

Are there certain skills you consider useful in your job?

Communication skills and emotional intelligence to deal with all sorts of people and align their interests, multitasking and time management skills are crucial. Technical nancial skills go without saying, and having sales skills to close deals. It has given me credibility and respect from clients, colleagues and managers alike.

How has the CFA charter helped you?

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Some Comments from leaders in Asia Pacific Region

Learn CFA, FRM & FINANCIAL MODELING at PFS

Some Comments from leaders in Asia Pacific Region

Are there certain skills you consider useful in your job?

Analytical skills and being insightful are very Important. The CFA charter has provided me with a great deal of

How has the CFA charter helped you?

knowledge on the framework of the fnancial markets

and the investment industry.

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Some Tips
Understand the concepts very well. There is no short cut. Start Studying as early as possible Register at the earliest possible date Before that make your passport ready. Make sure about the payment method. Use your time efficiently Revise the curriculum at least couple of times Write and memorize formula Practice as many questions as possible Sit for the mock exam to test your stamina. Make your parents, siblings, spouse aware of what you are striving for. You may need to be unsocial for some time. Be sure about your calculator and understand the functions of the calculator well. Keep sound health and hold your nerve.

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THANK YOU

Q&A
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