By Paul Clarke*
After what was an abnormally long wait, those taking the CFA level I and II exams were finally put out of their misery earlier this week and – as is usually the case – around 60% were told they had failed.
The good news, for those lucky enough to pass, is that the barrier to entry remains just as high, and therefore the value of the CFA is undiminished.
For level I, 38% passed (down from 39% last year) and 42% made it through the level two exam (from 43% a year earlier).
There’s been a surge in people enrolling for the course in recent years – an increase of 27% – no doubt fuelled by a rush to professional qualifications as job cuts have accelerated.
The CFA has, of course, always been difficult – requiring, on average, 300 hours of study per level – but it’s been mooted that it’s been unusually tough this year (perhaps in an effort to keep the pass rate low), to the point where one crazed candidate was escorted out of the building mid-exam.
A spokesperson for the CFA says: “The appetite for professional education is strong and has helped drive demand to earn the CFA Charter. In growing and emerging markets it makes individuals stand out from the crowd, and in established capital markets like the US and UK it is now difficult to enter and make your mark in the fund management industry without it.”
The CFA will undoubtedly provide a boost to your career prospects, but it’s questionable with the qualification alone is enough.
Asset management and private banking headhunters inform us that it’s a simply a standard barrier to entry, while those focusing on M&A and capital markets say that experience still counts more than qualifications (not that many firms are hiring currently).
The sad fact is that the CFA may no longer be enough to differentiate yourself from the competition – some training experts advise taking a CFA and an MBA or MSc in order to boost your job prospects.
------------------------------------------------------------
* This story originally appeared at efinancialcareers.com.au and is used here with permission.
We have expanded our finance sector jobs listings with efinancialcareers.com and you can now find these here » for New Zealand, Australia, and Singapore.
2 Comments
The sad fact is that the CFA may no longer be enough to differentiate yourself from the competition – some training experts advise taking a CFA and an MBA or MSc in order to boost your job prospects.
A sad reflection of the fact that teaching institutions have captured or rather indoctrinated, for there own selfish purposes, organisations now demanding these expensive and probably not so necessary qualifications for fairly mundane repetitive jobs.
How hard is it to understand the necessities of compound interest and it's application to the valuation of assets? The rest is guessing, right? - with a good bedside manner.
I have been there. Early member of the NZ Society of Investment Analysts, Nasdaq approved Registerd Representative, Grandfathered into the UK FSA. Am I qualified, not likely.
Thanks very much for posting this! I'm sure it will be really helpful
70-462 Vce Test Exam
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.