Chartered Financial Analyst

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Chartered Financial Analyst ( CFA ) is a title awarded by the CFA Institute in Virginia, USA primarily to financial analysts who have passed three exams and have at least four years of professional experience. To date, over 115,000 candidates worldwide have received the title, mostly from the areas of fund management , company valuation , investment advice , equity and derivatives trading , finance , transaction advice and controlling .

Paul Smith is the President and CEO of the CFA Institute. Gary Baker is Managing Director for Europe, Middle East, and Africa (EMEA).

A CFA charterholder is a member of the CFA Institute and at the same time in a "Local Society". In Germany, CFA charterholders are represented in the CFA Society Germany based in Frankfurt am Main . The CFA Society Germany is a registered association (e.V.). The association's board consists of ten people. In addition, the CFA Society Germany has an office in Frankfurt am Main.

statistics

The exact statistics are as follows (as of June 11, 2014):

  • Number of members: 122,000
  • States with members: 142
  • Number of associations: 143
  • States with associations: 68
  • Number of titleholders: 115,000
  • Exam registrations June 2014: 148,000

CFA exams

In general, candidates take one exam per year over three years, with the requirement to pass the previous level exam in order to write the next exam. The fees for each exam range from 700 (early), 1000 (standard) up to 1450 (late) US dollars, depending on the registration date, as well as a one-time registration fee of 450 US dollars (as of 2020). This fee includes detailed preparation books, with some candidates having other more comprehensive books to help them prepare effectively. The exams passed 43% Level I, 45% Level II and 56% Level III in 2018. The CFA Institute does not publish separate results for individual countries. According to insiders, however, the success rate in Germany and Switzerland should be well above the international average.

Pass rates
year Level I. Level II Level III
2018 43% 45% 56%
2017 43% 46% 54%
2016 43% 47% 54%
2015 42% 46% 53%
2014 44% 46% 54%
2013 38% 43% 49%
2012 38% / 37% 42% 52%
2011 39% / 38% 43% 51%
2010 42% / 36% 39% 46%
2009 46% / 34% 41% 49%
2008 35% 46% 53%
2007 39% 40% 50%
2006 40% 48% 76%
2005 35% 56% 55%
2004 35% 32% 64%
2003 41% 47% 68%
2002 44% 47% 58%
2001 49% 46% 82%
2000 52% 54% 65%

All three exams also focus more on ethical aspects, based on the Code of Ethics and the Standards of Professional Conduct of the CFA Institute. Otherwise, the topics can be described as follows:

  • Level I is primarily about an introduction to asset valuation, financial accounting and financial analysis as well as portfolio management techniques as well as basic statistical and quantitative methods.
  • Level II is primarily about evaluation questions and the application of the tools learned (including economic questions, financial accounting and financial analysis as well as quantitative methods).
  • Level III is primarily about portfolio management and the curriculum contains strategies for using the tools and valuation models you have learned to manage portfolios from various asset classes (stocks, bonds, derivatives, alternative investment products) for private and institutional investors.

All three exams are taken on a single day without using a computer; the Level I exam is offered twice a year (usually the first weekend in June and December). Level II and III can only be taken on the first weekend in June. Each exam consists of two three-hour exams (9 am–12pm, 2pm – 5pm). Level I consists of 240 multiple choice questions, with all the required information contained in the question. Since 2009 there are only three possible answers instead of the previous four. Level II is based on 20 so-called item sets , which represent a short text on various topics, followed by six multiple choice questions. To answer these, the candidate must refer to the respective text. Level III consists of a three-hour exam with answers to be formulated in the morning and a three-hour exam based on the "item sets" in the afternoon.

The candidates who have completed the exam will receive their result as passed or failed about six to ten weeks afterwards.

Learning and courses

Learning for the CFA exam is the responsibility of the candidates themselves ( self-study ). The CFA Institute only stipulates that at least 300 to 400 hours of preparation must be allowed for per exam - depending on previous knowledge. This model reduces the costs for the qualification measure compared to a course-based qualification measure such as an MBA .

There are also independent providers of materials and courses. The courses rarely last longer than 5 days. Mock exams and shorter courses are also offered, mostly over the weekend.

Areas

The following areas of knowledge are covered as part of the CFA curriculum:

  1. Ethical standards and professional standards
  2. Quantitative methods
  3. Economics
  4. Financial reports and analysis
  5. Corporate finance
  6. Capital investment
  7. Bonds
  8. Derivative
  9. Alternative forms of investment
  10. Portfolio management and wealth planning

Code

CFA titleholders are obliged to adhere to a strict code of ethics in their professional activities (Professional Code of Conduct). The commitment to the code must be renewed every year by the holder of the CFA, otherwise the right to wear the title expires. Membership in the CFA Institute is required.

Violations of the code can also be punished against the CFA Institute. The corresponding consequences can be found on the website of the CFA Institute.

Memberships

Membership of the CFA Institute is a prerequisite for holding a CFA title. Regular Membership costs around USD 300 for full membership. Candidates for the exams or candidates who still have to wait for their 4 years of professional experience to be completed can apply for membership as an affiliate member .

In addition, most of the charterholders are members of the local national association. There is a corresponding directory at the CFA Institute. The largest local societies in Europe (by members) are:

Post CFA / Continuing Education

After receiving the charter, most of the charterholders continue to train. These activities are based on the local societies, which have a wide range of mostly free events for their members. Participation is documented for members of the CFA Institute with so-called "CE Credits", which are shown for each event. "CE" stands for "Continuing Education". The CE credits are reported to the CFA Institute and confirmed in writing once a year.

According to the requirements of the CFA Institute, every charterholder is stopped “Annual Minimum Recommendations: Twenty (20) hours, including two (2) hours in the content areas of Standards, Ethics, and Regulations (SER)” . However, the requirement can also be achieved through independent study. Specialist articles from publications of the CFA Institute are to be worked through. The continuous training events of the CFA Society Germany eV are usually designed for 1.5 CE Points and last about 1–1.5 hours. The completed CE credits are managed and managed on the membership page of the charterholder in a database, the CE Diary. In the annual declaration of compliance by the charter holder regarding compliance with the Code of Ethics and the Standards of Professional Conduct, it must also be confirmed that these advanced training requirements of the CFA Institute have been met.

See also

Individual evidence

  1. ↑ Archived copy ( Memento of the original from May 28, 2015 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.cfainstitute.org
  2. ↑ Archived copy ( Memento of the original from April 3, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.cfainstitute.org
  3. ↑ http://www.cfainstitute.org/cfaprogram/process/fees/Pages/index.aspx
  4. ↑ https://news.efinancialcareers.com/de-de/322363/cfa-prufungen-hochste-erffektsquote-bei-level-iii-seit-uber-zehn-jahren
  5. ↑ http://www.cfainstitute.org/programs/cfaprogram/exams/Pages/index.aspx
  6. ↑ Archive link ( Memento of the original dated February 7, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.cfa-germany.de
  7. ↑ Archive link ( Memento of the original from April 30, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.cfainstitute.org
  8. ↑ http://www.cfainstitute.org/about/membership/process/Pages/index.aspx
  9. ↑ http://www.cfainstitute.org/learning/continuinged/ce/Pages/index.aspx

Web links