CFA – a small but fast growing (and influential) credential in Finance

HOWARD WOON, Director of Financial Services Academy

For months, they alternately ache for it and dread it. They shake. They lose sleep.

Methamphetamine addicts? Hardly. It is the thousands of people who take the Chartered Financial Analyst (CFA) exams, a 3-year self-study program for the finance, investment, and fund management industry recognized globally as the standard for professionals working in the industry.

"I didn't have much social life for three years," recalls Mr. Pisit Jeungpraditphan CFA, an investment banker at Intel Vision Securities PLC, of his time cramming for the three required CFA exams a few years ago. "When you work a twelve-hour day, then you have to fit it into your nights and weekends. It's no easy task but well-rewarding one”.

Although the CFA program is based on a self-study curriculum, passing all three levels of the examinations is no walk in the park. Candidates are recommended to put in at least an average of 250 hours of reading time per level. Although this may not seem daunting, any CFA charterholder will tell you that the amount of material that has to be covered is extremely demanding, especially when we're all busy with family and careers, daily 4-hour study sessions are a luxury most candidates can't afford.

Given the sacrifices, why are young professionals worldwide enrolling in droves to go through the rigors of this program? In one word….advancement. It is common knowledge within the industry that a CFA charterholder could command higher salaries and better job prospects than their peers because of the solid knowledge that charterholders bring with them, which often translates to higher quality research in the case of analysts and higher quality work amongst investment bankers and fund managers. This fact is not lost on the blue-chip investment banks who are increasingly requiring recruits to come with a CFA charter in addition to their Ivy-league MBA credentials. Indeed in Thailand , regulation has been passed that requires new entrants to the security analyst field to obtain a minimum Level 1 pass in the CFA examination.

For non-finance candidates, earning the CFA charter represents their most direct access to a career in investment banking and finance industry. This was the case of Mr. Montree Sornpaisarn CFA, head of Thailand 's largest security house, Kim Eng Securities: “I myself came from non-finance related background having graduated in Engineering from Chulalongkorn University . I had the thought to move into the finance and investment industry and hence I pursued the CFA charter to make up for my handicap.” And because the charter is internationally recognized, it also opens doors for CFA charterholders to work overseas on temporary or even permanent assignments. “Having the CFA Charter helped me win the confidence of our management in London when they were looking for suitable personnel from our Asian operations to work on a special project with colleagues from other countries,” shared Ms. Sunsanee Sakulsurarat CFA, an Assistant Vice President with Bank of America Bangkok Office presently working in Bank of America's London office on a special assignment.

For those of you who are considering to pursue this prestigious charter, some sobering facts: global passing rate for the Level 1 examination in June 2004 saw only 34% of candidates worldwide passing the exam. And the non-profit CFA Institute in the U.S. , which administers the examination worldwide in 89 countries isn't about to lower standards to have more charterholders. By maintaining the standards and rigor of the curriculum, the CFA charter will remain one of the most sought after and recognized credentials for professionals seeking to further their career in the industry. “As industry professionals, we should always endeavor to upgrade our individual skills and knowledge. The knowledge and skills we acquire through the CFA program will allow us to develop new products and services and ensure that we are not left behind in the bigger scheme of things” shared Mr Montree.

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