CFA ?

I agree that it is not an easy credential to attain, but if it were there would not be much point in getting it. I do not recall there being any specific coure requirements for the CFA since it was traditionally designed for self-study. As always, this is a matter of tradeoffs so I would see if it is worth the time and effort relative to other activities you could do.

The requirements are actually to get the charter. One can always clear the exams and then satify the requirements (reprinted from CFA site).

My only concern is i would risk a decent sum of money ($1500) and make my life miserable before time (start of school).



Requirements to Be Awarded and to Maintain the Use of the CFA Charter
To be awarded the CFA charter, a candidate must:

1. Sequentially pass the Level I, Level II, and Level III examinations;

2. Have at least three years of acceptable professional experience working in the investment decision-making process; and

3. Join CFA Institute as a member. As part of the application for CFA Institute membership, a candidate must:

Provide current completed sponsor forms;
Sign and complete the Professional Conduct Statement;
Sign and agree to comply with the terms of the Member’s Agreement; and
Exhibit a high degree of ethical and professional conduct.

4. Apply concurrently for membership in a CFA Institute Society of your choice. Your active membership in CFA Institute Societies is an important part of continuing advancement in your profession.

5. Once a candidate becomes a CFA charterholder, he or she must comply with the CFA Institute conditions, requirements, policies and procedures of a CFA charterholder and CFA Institute member, including those set forth in the CFA Institute Articles of Incorporation, Bylaws, Code of Ethics, Standards of Professional Conduct, Rules of Procedure for Proceedings Related to Professional Conduct, and other conditions, requirements, policies and procedures that may be established and amended from time to time, including the submission of an annual Professional Conduct Statement and the payment of membership dues. Failure to comply with the CFA Institute conditions, requirements, policies and procedures can result in disciplinary sanctions, including suspension or revocation of the right to use the CFA designation.

Oh, ok.

Sorry must have gotten some CFA and CPA requirements mixed up. My sister is currently studying for the CPA exam.

I'm taking the CFA level I in June. It is said that one must study ~250 hours to stand a good chance of passing (unless you have a strong finance background, in which case fewer hours are necessary).

The question you need to ask yourself is what you think the CFA will do for your career. Since it sounds like you are going to business school next year, I assume you have at least some idea of what your short-term and long-term goals are. If you're part of the army of MBA students that wants to pursue a career in Investment Banking or Consulting, the CFA won't help you, and could even hurt you.

You need not attain the charter for the CFA to help your resume- many financial services companies consider "progress toward" the designation a positive sign (e.g. passing the first level). I am not sure how demonstrating knowledge and interest in financial analysis would hurt an IB or MC candidate but I guess it's possible.

In saying that the CFA could potentially hurt the poster if he were pursuing a career in IB or MC, I'm assuming that he would continue with levels II and III of the CFA during his time in school. The CFA does not have much relevance to careers in IB and MC, and studying for the CFA concurrent with job search in those areas may call into the question one's focus on and commitment to a certain career path. If he decides not to continue with the CFA during business school after passing Level I, then it definitely wouldn't provide any help to his job search in these fields while in an MBA program.

If you plan on going into portfolio or investment management, then the CFA could help you, as it does directly apply to roles in those fields.

Most importantly, the CFA is a huge time commitment that will require you to sacrifice a great deal of your personal life for almost half of the next three years. The decision to study for the charter should not be taken lightly.

I think we agree that this is not a decision that should be rushed and that one should consider the opportunity cost of the CFA carefully.

Hjort

I figured I'd chime in here since I just received my CFA study materials today. I'm planning for the GMAT in April and CFA in June. Make darn sure you're prepared to study because there is a TON of material for the CFA. (And I don't have to tell you what a committment GMAT is.)

IMO, I don't think CFA Level I exam requires the 250 hours that the CFA people recommend BUT it will definitely take quite a bit preparation. I wholeheartedly believe it's worth undertaking regardless of what job you go into.

Well put, Chapman!

I just earned the CFA charter this past year. I studied probably 300-400 hours for each Level and passed each exam without failing any. The exams are not easy. With pass rates of about 33% for the first two exams and 50% for the third exam, a rough estimate of those who pass without failing is about 5%. I was lucky because I've had jobs with alot of downtime where I was able to study a lot at work, but still put in a lot of time in evenings and on weekends. To be honest, it will be extremely difficult to pass with only two months of study. Even if you have a lot of experience and coursework in finance, the breadth of the exams is large that a lot of the stuff will be new to you, and they expect you to know it at a high level and be able to answer the questions quickly. I graduated Magna Cum Laude with a degree in Quantitative Economics and I had to learn the Economics portion from the CFA point of view. Schweser puts out a very good set of "condensed" study notes and this includes 5 books of study material, encompassing about 1200 pages of material you have to know. It's a tremendous amount of effort and commitment to undergo and you can pretty much kiss the next three springtimes and Memorial Day Weekends of your life goodbye.

Also, the CFA Institute has updated the work requirements and in 2007 you will need four years of experience to qualify for the Charter.

An excellent forum where you can discuss CFA related issues with people in the program and people who have completed the program is https://www.analystforum.com

If you are going to embark on this endeavor, I wish you the best of luck, be keep in mind that it's not easy.

Thanks a lot guys !

Beyond doubt, the CFA is a rigorous program. By studing the CFA's structured curriculum, I hope to gain a solid introduction to finance. This, for me, is one way to gauge how I'll perform at school and whether a career in finance makes sense for me.
Perhaps, taking the Dec 2006 exam makes more sense.

MBAhopeful06,
Congratulations on the charter! Are you going to school this yr?

BumblebeeMan:
I do not intend to pursue the CFA during business school. That would make school like the 36 chambers of Shaolin (a kung fu movie abt training in the Shaolin temple).

All those apearing/appeared for the test:
Do you recommend the 2006 schweser material to start off with? Its mighty expensive. Since I do not have a background in finance, should I read a textbook rather than "study notes" targeting a specific exam?


Hjort:
I read with interest your post about recommended books. Do you have any suggestions for beginners?

Thanks!

I have added a few good introductory books in finance. Do you have any coursework in accounting?

If you do not already have a CFA-compliant calculator it is a good idea to get one for practice.

Hi Hjort,

No background in Accounting.
I will check out the books you mentioned and let you know. Thanks!

I just finished Liar's Poker.

Hi Hjort

I have passed 2 levels of CFA and now writing the third. My biggest problem is my unconnected work experience. I started off with IT for a year in a local software company then they moved me to sales for a year. I started giving the CFA when I was in sales. A year after sales(2 years from graduation) I moved to a large MNC bank but in their backoffice. This move was to utilize my CFA qualifications and look for a move to the front office. Unfortunately, being in the back-office I am unable to utilize my CFA knowledge and the move to the front office hasn't materialized.

I have started looking elsewhere for trading/analytical jobs. My dilemma is
-Should I stay in this MNC and hope to rise somewhere in the backoffice which would give me leadership experience
-Should I move to a smaller company as a financial analyst (I have a second round interview shortly)

Does company size matter when it comes to Ad-comm. If it does then I shall not think of moving to this smaller firm, though I am sure the learning and the responsibilities there would be far greater than my current job.

From my perspective, I feel in either company it would be a minimum of 2 years before I shall become a manager and I want to be in a b-school in 2 years time.

Company characteristics (e.g. size and name) matter but not as much as many applicants seem to think. Being selected and succeeding by a large, well known firm is a pretty good sign that someone is a capabable of thriving in a challenging environment. However, what you actually do at the company and how you present that to the admissions officers is more important. I have seen applicants with impressive corporate names be rejected outright while other applicants with smaller, far less impressive names sail right through the admissions process. I would choose the oppportunity that is the best match for your goals and interests regardless of any impact on MBA admissions.

Hjort