The CFA program was first introduced in 1962 by the CFA Institute, which was previously known as the Association for Investment Management and Research (AIMR). CFA is a graduate-level program is designed to train individuals interested in pursuing a career in the field of financial assets and investment management. It offers knowledge and expertise in a wide range of investment-related areas including securities analysis, money managing, and investment advisory. The program focuses on tools used in, valuing and allocation of assets, evaluation of investments, and managing investments portfolios. The CFA program is designed as a self-study curriculum, which is administered by The CFA Institute.
Requirements
Admission in the CFA program is granted to candidates with a bachelor’s degree or have an equivalent of a bachelor’s degree, which can be in any field. “In order to win the CFA designation candidates are required to pass all of the three, six hour long, examinations and acquire at least forty eight months of relevant professional experience. The program gives students complete autonomy over the timing of completion of the work experience requirement, even allowing them to acquire the relevant experience before and/or during the examination. Furthermore, there is no maximum limit over the time period within which the exams must be passed, which adds on to the flexibility of the program and makes it more pursuable for working people.”(Peacock).
Benefits of CFA designation
The CFA designation was initially perceived as a tool for mutual funds management and institutional analysis and it was rarely sought by investment professionals, providing services to individuals, such as individual financial planning and advisory services related to income tax management, insurance, and employee benefits. However, the ever-increasing competition and rising demand for more technical skills like quantitative analysis mean that CFA is no longer meant solely for institutional investment managers. The booming economy of the 1990s caused a staggering rise in the number of individual investors. The increasing participation by individual investors in the markets has triggered an increase in the demand for professional advisers who can assist them in achieving higher returns on their investments. The CFA credential allows financial professionals to increase their understanding of the market dynamics, economic cycles and provides them with the ability to carry out a comprehensive analysis of the investment vehicles, which is required for the growth of assets.
The CFA sets a benchmark in knowledge, professionalism, and integrity within the investment management sector and is recognized by employers all around the world. “The CFA program has been ranked as a gold standard among other designation in investment analysis by the renowned Economist magazine”(CFA Institute). Hence, in other words, the CFA designation provides portable credibility to professionals. “Wallace Woo, the director of Investment counseling, HSBC (SA) pointed out in a seminar that when prospective employers come to know that an applicant holds the CFA designation, they immediately assume that they possess a standard of knowledge.” (Peacock).
More importantly, to maintain the public’s trust and win clients’ confidence for management of their financial assets, professionals must be seen to be complying with a comprehensive set of ethical codes and codes of professional conduct. The CFA Institute requires all of its members to adhere to the list of ethical codes and standards of professional conduct issued by the institute, which serves as a benchmark for investment professionals worldwide.
Works Cited
The CFA institute. “CFA program fast fact”. Cfainstitue.org. Web.
careertimes.com.hk/ author: Peacock, L. “Gear up”. Web.