The Chartered Financial Analyst ( CFA ) program is a professional credential offered internationally by the American-based CFA Institute (formerly the Investment Management and Research Association, or AIMR) for investment and professional finance. The program covers a wide range of topics related to investment management, financial analysis, stocks, bonds and derivatives, and provides general knowledge about other areas of finance.
A successful candidate completing the program and meeting other professional requirements is awarded a "CFA charter" and a "CFA charterholder". As of June 2016, there are around 132,000 graphic owners worldwide. Successful candidates need an average of four years to get their CFA charter. According to the CFA Institute, less than 20% of candidates who start the program receive the CFA Charter.
Top CFA Charterholders are JP Morgan, UBS, RBC, Bank of America, and Wells Fargo.
Video Chartered Financial Analyst
Histori
Its predecessor CFA Institute, Federation of Financial Analysts (FAF), was founded in 1947 as a service organization for investment professionals. The earliest CFA Charterholders are "grandparents" only through work experience. Then, a series of three exams are set along with the requirement to become a practitioner for several years in order to qualify for the exam. In 1990, in the hope of raising the public profile of credentials, the CFA Institute (formerly the Investment Management and Research Association) joined the FAF and the Institute of Chartered Financial Analysts (ICFA).
The CFA program started in the United States but has become increasingly international with many people becoming charterholders throughout Europe, Asia and Australia. In 2003, less than half the candidates in the CFA program were based in the United States and Canada, with most other candidates based in Asia or Europe. The number of charterholders in India and China has increased 25% and 53%, respectively, from 2005-06.
Maps Chartered Financial Analyst
Requirements
To become a charterholder, candidates must meet the following requirements:
- Have four years (48 months) of qualified work experience (or a combination of educational and work experience acceptable to the CFA Institute). However, individual-level exams may be taken before fulfilling these requirements;
- Complete the CFA Program (mastering the current CFA curriculum and passing three six-hour examinations);
- Become a member of the CFA Institute
- Comply with the CFA Institute's Code of Ethics and Standards of Professional Conduct.
Regardless of the other requirements to become a charterholder, the CFA Program requires an average of four years for candidates to complete.
Process
Basic requirements to participate in the CFA Program (with or without obtaining a charter) include holding a bachelor's degree or being in the final year of a university degree course (or equivalent assessed by the CFA Institute), or having four years of qualification, professional work experience in the decision making process investation. To obtain a charter, however, a candidate must have completed a university degree (or equivalent) and four years of qualified, professional work experience, in addition to passing three examinations that test candidate knowledge from the academic part of the CFA program. However, an accredited degree may not be a requirement.
Candidates take one exam per year for three years, assuming a pass on the first attempt. Costs per December 2009 for each exam range from $ 710 to $ 955, depending on the date on which the candidate enrolled for the exam, plus an additional $ 400 to $ 480 for program enrollment for new members. Level II and III pass levels apply to candidates who must have passed the previous level.
All three exams are given on paper on one day; Level I exams are given twice a year (usually in the first week of June and December). Level II and III exams are given once a year, usually at the end of the first week of June. Each exam consists of two three-hour sessions. Level I has 240 independent multiple choice questions - all the information needed to answer the questions is contained in the question. Level II has 120 multiple choice questions, arranged as 20 sets of six-question questions , each set has its own fact sketch. To answer each question, candidates should refer to the sketch because there is insufficient information in the question bar. Level III consists of constructive response sessions, essay-type questions, and sessions of 10 sets of six question items such as at the Level II exam. In the multiple-choice/set item, there is no penalty for incorrect answers. For testing, only two models of calculators are allowed (Hewlett Packard 12C includes HP 12C Platinum), and Texas Instruments BA II Plus (including BA II Plus Professional).
Candidates who have taken the exam receive a score report intended to be non-specific: no overall score for the exam, only Pass/Fail results, and the range in which its performance for each topic area falls: less than or equal to 50%, 51% -70%, and above 70%. Candidates who fail to be informed of their ranking of deciles in the failed candidate body. Passing score for the exam has been defined as 70% of the percentage of the exam paper until 1989; since then, the assessment method has not been published explicitly and the minimum passing score is set by the Board of Governors after each test. The Board of Governors reviews the results of standard setting processes and inputs from independent psychometrics.
The default setting is the process that determines the exam passing score. The CFA exam uses a modified Angoff method which is a common approach used to set standards for certification and licensing checks. The problem expert studied the exam and recommended a minimum passing grade for "qualified candidates". The minimum passing score is presented to the Board of Governors in a report. The Board of Governors is not bound by this recommendation, but recognizes it as very important information.
Curriculum
The curriculum for the CFA program is based on the Talent Talent of Knowledge established by the CFA Institute. The curriculum consists of the topic areas below. There are three exams ("levels") that test the academic part of the CFA program. These three levels emphasize the ethical subject. The material differences between the exams are:
- The Level I course emphasizes tools and input, and includes introductions for asset valuation, financial reporting and analysis, and portfolio management techniques.
- The Level II course emphasizes asset valuation, and includes both tools and input applications (including economic, reporting and financial analysis, and quantitative methods) in asset valuation.
- The Level III study program emphasizes portfolio management, and includes a description of strategies for applying asset tools, inputs and models of asset valuation in equity, fixed income, and derivative investments for individuals and institutions.
For exams from 2008 onwards, candidates are automatically given a curriculum reading from the CFA Institute upon enrollment for the exam. The curriculum is not provided separately in the absence of exam registration. If the student fails the exam and is allowed to do the resit that same year, CFA Institute offers few rebates and will not send the curriculum anymore (the curriculum only changes every year). If the student returns in a year other than the year of failure, he will receive the curriculum again, as it may have changed. The study material for the CFA Exam is available from many commercial learning providers, although they are not officially supported. Organizations (some official accredited) also provide course-based preparation. In 2019, a Chartered Financial Analyst (CFA) examination will add questions about artificial intelligence, automated investment services, and mine non-conventional data sources.
Ethics
The ethics section mainly deals with compliance and reporting rules when managing investor money or when publishing research reports. Some rules relate more generally to professional behavior (such as a ban on plagiarism); others specifically deal with the proper use of the title for chart holders and candidates. These rules are outlined in the "Standards of Professional Conduct", in the context of a comprehensive "Code of Conduct"; see sidebar.
Quantitative Method
This topic area is dominated by statistics: the topic is broad, covering probability theory, hypothesis testing, (multi-variate) regression, and time-series analysis. Other topics include time value of money - incorporating baseline valuations and return results and calculations - portfolio-related calculations, and technical analysis.
Economy
Both microeconomics and macroeconomics are covered, including the international economy (especially those associated with currency conversion and how they are affected by international interest rates and inflation). At Level III, the focus is on applying economic analysis to portfolio management and asset allocation.
Corporate finance
The curriculum covers more basic corporate finance topics - capital investment decisions, capital structure policies, and dividend policies - as well as advanced topics such as mergers and acquisitions, corporate governance, and business and financial risk analysis.
Financial reporting and analysis
The curriculum includes analyzing the financial reporting topics (International Financial Reporting Standards and US Accounting Principles) Accepted General), and the ratio and analysis of financial statements. Financial reporting and accounting information analysis are strongly tested at Levels I and II, but are not a significant part of Level III.
Security analysis
The curriculum covers the global market coverage, as well as the analysis of different types of assets: equities (stocks), fixed income (bonds), derivatives (futures, forwards, options and swaps), and alternative investments (real estate, private equity, hedge funds and commodities). The Level I examination requires familiarity with this instrument. Level II focuses on assessment, using "tools" that are studied with quantitative methods, financial statement analysis, corporate finance and economics. Level III centers on incorporating these instruments into the portfolio.
Portfolio management
This section increases its importance with each of the three levels - it integrates and draws from other topics, including ethics. These include: modern portfolio theory (efficient frontier, pricing model of capital assets, etc.); investment practices (defining investment policies for individual investors and institutions, allocation of assets generated, order execution); and measurement of investment performance.
Legal and other acknowledgments
- The Society of Actuaries (SOA) provides credits Validation by Education Experience (VEE) -Economy to candidates who pass the Level I CFA exam. SOA also provides both VEE-Corporate Finance and VEE-Applied Statistical Methods passed the Level II CFA exam.
- The New York Stock Exchange (NYSE) provides the CFA charterholders option to take only the inspection analyst's portion of the checks relating to exchange rules on research standards and related matters.
- US. The Securities and Exchange Commission (SEC) may grant exceptions to the requirements of Series 86 testing to financial analysts who pass the CFA II Level exams that also meet other requirements of the Financial Industry Regulatory Authority, formerly known as the National Association of Securities Dealers (NASD).
- To register as a portfolio manager in Canada, under National Instrument 31-103, applicants must hold the CFA and have relevant experience, or alternatively, the Chartered Investment Manager.
- CFA Charterholders are recognized by Chartered Institute for Securities & amp; Investment (CISI) as meeting the qualification requirement for entry into full membership (MCSI).
- The content level of the CFA Program has been recognized by the United Kingdom NARIC as comparable in levels to the level 7 QCF level (master's degree level).
- The Taiwan Financial Supervisory Commission (FSC) has approved the appointment of a CFA with two years of practical work experience and passed the regulatory test of the Securities Investment Trust & Enterprise Consulting and tests for general knowledge of financial markets and professional ethics, general subjects, equivalent to locally recognized industry qualification from Certified Securities Investment Analysts (CSIA) in Taiwan, having been reviewed and approved by Investment Investment Trust & Consultation Association (SITCA)].
- The Hong Kong Securities and Futures Commission's Accreditation and Accreditation Committee (SFC) has approved the appointment of the CFA as an industry recognized qualification for the licensing of Responsible Officers in Hong Kong.
- Competence-cumulative CFA Charterholders, which include training in education and work experience, may apply to the Hong Kong Business Assessment Forum (HKBVF) as a Registered Business Appraiser (RBV) in Hong Kong.
- The CFA Charterholder is recognized by HK Hong Kong Securities Institute (HKSI). Charterholders can apply for individual membership. (MHKSI).
- The CFA chart printer is excluded by the International Risk Manager Association (PRMIA) of the first two exams required for PRM qualification.
- Exceptions are available for different modules in the South African Person Listed Exam, depending on the level of the candidate. No exceptions are available for inspection of local market regulations and compliance.
- The CFA chart printers are acknowledged by the supervisor of Brazil's main securities analyst, APIMEC, equivalent to their "global content" tests, even though candidates must pass the "local content" test to grant their membership.
- The CFP Board has approved the CFA charter as meeting most of the educational course requirements for CFPÃ,® certification, awaiting completion of a capstone course registered with the CFP Board prior to taking the CFP exam.
Trademark dispute
India
The CFA Institute is completely unaffiliated with the Financial Funding Analysts degree offered by India University Institute of Financial Analysts (ICFAI) or its affiliates, Board of Chartered Financial Analysts (CCFA). In 1998, the CFA Institute's predecessor organization, AIMR, sued and won an assessment of ICFAI/CCFA.
The ruling prohibits ICFAI/CCFA and its members from using CFAs or Chartered Financial Analyst marks in the United States and Canada. In August 2006, an Indian court issued a temporary order against the Indian entity, as well.
The assessment does not assess the quality of Indian programs and only addresses trademark infringement. The Indian Association of Investment Professionals is the only organization in India affiliated with the CFA Institute. The trademark rights of the CFA Institute to the "CFA" and "Chartered Financial Analyst" brands have been recognized in India by the Delhi High Court. Furthermore, the Delhi High Court issued an interim order ordering ICFAI and its Registered Financial Analyst Board to stop using the CFA Institute trademark. The recent Trademark Registration Deputy specifies that the trademark registration issued to the CFA Institute for the "CFA" brand must be republished by error by the Trademark Registry. The CFA Institute has many trademark applications registered in the Trademark Registry, and CFA CFA Institute CFA charters are free to use "CFA" and "Chartered Financial Analyst" signs across India.
On May 8, 2007, the US District Court for the Eastern District of Virginia vacated the default assessment issued to the ICFAI obtained by the CFA Institute in October 1998. ICFAI recently moved to reopen the case and vacate the Default Decision because the Court has no jurisdiction over ICFAI when the Default Decision is issued. With default assessments cleared, ICFAI informs holders of Indian CFA Charter that they can legitimately use their Charter in the United States and Canada. However, on September 4, 2007, the Court overturned its decision to vacate after a motion to reconsider that decision filed by the CFA Institute. The latest update on CFA Institute legal battles in India can be found from interviews Ashvin P. Vibhakar, Managing Director of CFA Institute.
English - Trademark Registrations vs CFAI
In January 2007, the Trademark Registry, the UK refused to register "Chartered Financial Analyst" as a trademark, because the word "charter" in the UK was associated with an agency incorporated with a royal charter and hence "the relevant public in the UK would be, prima facie, expecting someone to use a mark that is applied to represent themselves as members of an organization subject to the Royal Charter ". "CFA" is a registered trademark in the United Kingdom, but only for "Education services" (class 41) rather than "Financial services" (class 36) where an attempt to register "Chartered Financial Analyst" has been made.
CFA block list
See also
- Other professional designations
- Certified Treasury Professional (CTP)
- The Chartered Market Technician (CMT)
- Certified International Investment Analyst (CIIA)
- Chartered Alternative Investment Analyst (CAIA)
- Financial Risk Manager (FRM)
- Professional Risk Manager (PRM)
- Certified Management Accountant by Institute of Management Accountants
- Certified Financial Planner (CFP)
- Certificate in Quantitative Financing (CQF)
- Chartered Investment Manager (CIM)
References
External links
- CFA Institute membership profile
- Challenges of CFA Institute Global Investment Research
- FINRA's Education Reference Guide Displays the CFA Charter and Terms
- US Department of Labor - US Bureau of Labor Statistics Guide Occupation Ã, .
Source of the article : Wikipedia
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