CFA Institute announced today that 42 percent of 111,731 current and aspiring investment professionals worldwide passed the June 2010 CFA exams, bringing them one step closer to earning the distinguished CFA charter.
To earn the CFA charter, candidates must sequentially pass three six-hour exams that are widely considered to be among the most rigorous in the investment profession. The 2010 exams were given at 255 test centers in 185 cities worldwide.
Within the Middle East, incorporating all six GCC countries, as well as Egypt, Jordan and Lebanon, a total of 3,057 candidates sat the exam in 7 test centers, up 28% on last year representing a continued growth in the number of CFA charterholders sitting the exam in the Middle East region. It also reflects the region's continued commitment to global standards and ethics within its financial and investment communities as national economies continue to develop and mature.
"The CFA designation continues to attract individuals globally who want to enhance their knowledge and skills to succeed in today's competitive world of investing and finance," said John Rogers, CFA, president and CEO of CFA Institute. "Employers, institutional and individual investors, and regulators alike see great value in the heart of the CFA Program – financial education and professional ethics training. Investors know that when working with a CFA charterholder, they are working with a serious investment professional who is also a trusted advisor." CFA Institute has administered more than one million exams since the inauguration of the CFA Program in 1963.
Commenting on the continued growth in the number of candidates sitting the CFA examinations from within this region, Mr Yacoub Nuseibeh, president of CFA Emirates, said: "Despite the continued uncertainty within the global financial markets, the Middle East remains a dynamic and fast growing region, attracting some of the best professionals from around the world. It is reassuring that the financial and investment professionals are continuing to recognize the importance of the very best international qualifications. Investment practitioners need a high level of proficiency to practice in today's environment, hence the growing number of candidates from within this region who are choosing to sit for the CFA examinations."
The CFA curriculum includes ethical and professional standards; financial reporting and analysis; corporate finance; economics; quantitative methods; equity, fixed income, and alternative investments; derivatives; portfolio management and wealth planning. In a post-exam survey, CFA candidates replied that financial statement reporting and analysis, derivatives, and fixed income were the most difficult topic areas for the 2010 exam. A strong majority (73 percent) of candidates who responded to the survey said they would re-take the CFA exam the next time it is offered if they do not pass.
In the above-mentioned post-exam survey, candidates reported that they spent 295 hours of study to prepare, which is close to the CFA Institute-recommended minimum of 300 study hours for each exam. CFA candidates typically take four years to pass the three required exams. The Level I exam is offered twice per year, while the Level II and Level III exams are offered once each year. The Level I exam consists of multiple-choice questions. Level II is composed of item sets (i.e., mini cases with detailed vignettes) and the questions at Level III are 50 percent item set and 50 percent short answer and essay.
Those who passed the Level III exam – 9,880 candidates − will begin receiving their CFA charters in early October 2010, provided that they also have completed the minimum work-experience requirement of four years in the investment industry, signed a commitment to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct, apply to a CFA Institute society, and become a member of CFA Institute.
Just as earning the CFA charter shows that an investment professional is committed to a higher standard, hiring a CFA charterholder signifies that a firm is, too. Employers and media around the world recognize the CFA charter as the standard of professional excellence, and, with such widespread recognition, CFA charterholders earn a significant competitive advantage for international employment. CFA charterholders are typically employed by investment companies, mutual funds, broker-dealers, investment banks, and as private wealth managers.
Regulators around the world also recognize the value of the CFA charter (read more). Nearly all U.S. state securities commissions grant CFA charterholders an exemption to their licensing exams for investment advisers and investment adviser representatives. The NYSE and FINRA provide an exemption from the analysis portion (Series 86) of the Research Analyst Qualification Exam for certain applicants who have passed Level II of the CFA exam. Additionally, regulators in 15 other countries and territories such as Australia, Brazil, Canada, Hong Kong, Mexico, Peru, Singapore, South Africa, and United Kingdom accept the CFA designation as meeting licensing or qualification requirements. In Indonesia, the Philippines, and Thailand, passing a certain level of the CFA exam is required to practice in the jurisdiction.
Select colleges and universities have an appreciation for the global relevance of the CFA charter and the advantages it provides for their graduates. These institutions have been identified by CFA Institute as CFA Program Partners and embed at least 70 percent of the CFA Program Candidate Body of Knowledge into their degree programs, as well as commit to cover the CFA Institute ethical and professional standards in the curriculum. This recognition tells students and employers that the university curriculum is closely tied to professional practice and is well suited to preparing students to sit for the CFA exams. Currently, there are more than 120 CFA Program Partners on six continents. Within the Middle East this includes the American University of Beirut and the American University of Sharjah.
