The CFA Curriculum

The CFA study program encompasses many areas of the financial industry, as well as a strong emphasis on ethics and professional responsibility. As we've discussed briefly, the CFA candidate must pass three exam levels. The CFA Institute recommends that each candidate spend at least 250 hours in preparation for each level. The curriculum is self-study, which means that the candidate can pace him or herself according to his or her own comfort level. However, as exams are only given on certain dates, the candidate must create the pace to fit within those timelines. From the organizational perspective, the fact that the program is self-paced is very important. The candidate that completes all three levels successfully will prove that he or she is dedicated, determined, and goal-oriented. From an education perspective, we know that any self-paced program requires this dedication and determination, not to mention the discipline to make study a part of every day life.

The next important aspect of the CFA curriculum is who determines topic areas, how those areas are chosen, and who writes the content for those topics. First, the curriculum itself changes from year to year due to the changes that constantly occur on a global scale in the investment world. Major changes are undertaken every five years - and only after a detailed analysis of the practice on a global scale. In terms of curriculum development, a committee of active CFA charterholders determines content and the content is then written under their tutelage by the CFI Institute staff. From a training and development perspective, many corporations would love to have a committee of practicing professionals who actively look at curriculum to keep it fresh. And because of the changing nature of the financial markets, the CFA curriculum must be in constant change, as well. This combination of practicing Subject Matter Experts as well as field analysis make the CFA curriculum strong, current, and in constant change with the financial world.

The topics that are currently covered in the CFA curriculum are varied, including ethical and professional standards, statistics, analysis, economics, financial reporting, corporate finance, equity investment, fixed income securities and markets, derivatives, alternative investments, portfolio management, and wealth planning. Because practicing CFA's develop the curriculum, the content tends to be on the practical side, versus more theoretical knowledge that a person might obtain in a university degree program. Plus, the broad-based, generalist approach allows the CFA candidate to absorb topics in a way that keeps them from being too product or market specific. This approach also allows the organization to create a talent pool with broad knowledge that can be applied in various settings, positions, and projects.

The CFA curriculum is broken down into multiple study sessions within the topic areas. Each of these sessions contains readings from Institute content, textbooks, professional journals, analyst reports, and case studies, along with problem sets that correlate with the reading and require practical application of the information. In addition, each session and reading contains specific learning objectives so that the candidate can understand what he or she is going to be expected to do even before the lesson begins. The CFA Institute includes multiple additional resources, such as comprehensive outlines and indices, as well as a glossary.

The exams are almost textbook-perfect examples of Bloom's taxonomy in action. Exams, as we've discussed, are given in June and December in multiple locations. Each exam is broken down into three levels that vary in both testing method and taxonomy levels. For example, Level One exam questions are generally multiple-choice and cover knowledge, comprehension, and some analysis. Level Two are case-study questions that cover analysis and application, and Level Three are both essay and case-based in nature, covering synthesis and integration. From an adult education standpoint, the fact that each exam has three levels that cover multiple testing methods and taxonomy levels is impressive. This shows us that the CFA Institute is dedicated to ensuring that each CFA leaves the program with not only knowledge but the skill necessary to apply that knowledge in multiple situations.

One of the other benefits from a learning standpoint is that the exams are given only in English. This may seem tough to some, but the Institute maintains that this is a method for ensuring fairness and accuracy in both delivery of exam material as well as grading. From a consistency standpoint, the English-only exams also ensure a high level of learning and application for candidates.

Before we move on, let's look at the CFA curriculum and exam structure as it relates to organizational benefits. We've already determined that a self-study curriculum requires a dedication and discipline that some people simply do not possess. But in regard to the content itself, a CFA candidate will be receiving the most up-to-date content available since practitioners compile it. This seems to take the onus off of the organization for ensuring that the CFA is consistently up to date. With the network of CFA professionals in addition to the curriculum, your organization can concentrate on training in other functional or behavioral areas. This is a definite benefit if you are planning to build a department comprised of CFA's. Finally, the exam structure ensures that each professional has a detailed knowledge - but is able to apply that knowledge. As organizational development professionals, we too often see that there is a gap between knowledge and execution. In the case of the CFA, this gap is probably very narrow.

Next, we will move from the curriculum to the recognition and standard of the CFA program as a benefit to both the organization and the individual.

Copyright 2010 Financial Training Solutions & Bryant Nielson. All Rights Reserved.

Bryant Nielson - Director of Financial Training Solutions - assists executives, business owners, and top performing performers in taking the leap from the ordinary to extraordinary. Bryant is a trainer, business & leadership coach, and strategic planner for those in the capital markets. Nielson's 27 year business career has been based on his results-oriented style of empowering the individual..

Learn more about Financial Training Solutions and our various offerings at: http://www.financialtrainingsolutions.com/cfa-training.php.

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The CFA Exam: How I Beat It, And What I Would Do Better

When I decided to enroll for the CFA exam in 2008, I had no clue what I was signing up for. Little did I know that I would be involved in a grueling study schedule for the next three years next to my job and the family. Coffee would become a food group, and pretty much all of my free time was spent on reading about ethics, financial analysis, portfolio management, fixed income, derivatives, alternatives, and equities.

The material is very interesting and highly relevant to anyone in the finance profession. There is a reason, why the CFA is called the "Gold Standard". We are not going to debate the validity of the CFA program here though, but I want to focus on study technique that will help you study easier and perform better at the exam. Let's get going!

First, I think you definitely need a sturdy study schedule. First when the CFA books arrive, you will marvel at the phone book-sized study text in front of you and wonder how you will ever get through it. It's important to have enough time on your hands (best would be six months) and to divide your time accordingly. You will want at least one month for review at the end, so make sure to factor that into your calculation. When you finalized your study plan, it's really all about sticking to it. Set aside a few hours each day to read the materials, and don't slack on this.

Next will be review. you have to practice and remember what you read, so best would be to take some notes during the reading sessions that you can later revisit. Along with the notes I also used a study tool called the "Financial Analyst Study Notes" for the CFA Exam. Each of the learning objectives (LOs) from the CFA curriculum is reformatted into a question and answer there, so it's quite handy to study and practice at the same time.

Two weeks before the exam you should start with practice exams. There are a few on the CFA website, but Schweser also has some good ones. It's very important that you emulate exam day, as exam strategy is a big part of a passing score.

Last but not least: Make sure you're in physical top shape on exam day. No over-nighters right before, and no stress if possible. Best would be to take a day off before the exam, that way your memory will be rested and able to fire fast during the exam.

I hope this helped you a little clarify what you're up against with the CFA preparation and how to best jump start the process. All the best for your CFA!

Check out the Financial Analyst Study notes here: CFA Notes for Chartered Financial Analysts

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Why People Need a Competent CFA

Chartered Financial Analyst is a very important and much sought-after financial certified person. The certification program helps to train finance students become investment wizards. The need for a CFA executive has risen in recent times as many people get salaries, assets through legacy or business but don't know how to manage the liquid cash and invest it further to churn better profits.

Although profiting from the earned assets is nice to hear, it is embroiled with ethics and legal rules. If you were to do it alone, you'd soon fade away with the enormous workload and pressure load that comes when managing your money.

Eligibility for CFA

CFA is a managerial job where the finance person analyzes the pros and cons of investing money of the client. The certification program is conducted under CFA Institute. Tough test objective and questions are set to ensure that a CFA is competent to handle money for the best of interest for his client.

CFA certified pupils have had no less than three years experience in investment. It is the tenacity and perseverance of the candidates that helps to create useful CFA professionals.

CFA Course

Before sitting for this financial certification course, finance students need to learn up the Code of Ethics and Standards of Professional Conduct that is designed by CFA Institute. An incumbent CFA has to put in hours of hard work, use time intelligently, and work on effective learning.

As this CFA-enabling course is an analyses-based financial curriculum, the students need to exhibit their managerial skills, financial know-how, and intuitive approach to a financial problem to shine as an CFA professional.

ISBF has been established to impart quality education with international recognition in the area of Economics, Management, Finance and CFA.

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CFA - Recognition and Standard

Certifications and professional designations have a value to the organization and the individual only if they are recognized or explainable in terms of the standards they uphold. In other words, both individual and organization look for designations that can be used to market, lend credibility, and explain standards, education and experience. Many organizations have internal certification or designation programs and these are a great way to get associates involved and retain them. But what does an internal certification actually prove? Everyone inside the organization knows what the certification means, what the person had to do to get it, and what standards he or she was held to. But outside of that organization, what value is the certification to shareholders, customers, or other organizations? The CFA designation is well known throughout the world, and because of its structure, gives your organization and each individual the recognition and standard they deserve. Let's find out how.

First, The Economist ranked the CFA designation as the "gold standard" in investment analysis designations and certifications. This is a weighty accolade and certainly puts the individual and the organization at a higher level. But what other recognition and standard exists to place the CFA at the "gold standard" level? There are several areas, including worldwide regulatory recognition, community recognition, standards related to the curriculum, and types of companies that look for CFA charterholders.

Regulatory recognition is important in worldwide financial circles, especially if holders of a designation plan to work in global markets or in countries other than their own. CFA charterholders reside in just about every country around the world, according to the CFA Institute. This is just one piece of the recognition puzzle. Several countries' regulatory bodies have waived some licensing and examination requirements for candidates who have passed Levels I or II or have already obtained their CFA designation. This means that these charterholders are licensed to practice in multiple areas, such as Australia, the U.S., four provinces in Canada, Greece, Hong Kong, Singapore, and Turkey. If your organization is involved in investment operations in these areas, your CFA charterholders can practice without further licensing or examination. The fact that the regulatory authorities of these countries have extended recognition of the CFA designation provides a high standard of authority.

The community within which an organization operates is also an important source of recognition and standards. For example, the National Council for Interior Design Qualification is a recognized standard within that industry, but is most likely meaningless outside of it. But keep in mind that the financial industry in general is loaded with certifications and degrees such as MBA's, Certified Public Accountants, and Certified Investment Management Analysts, to name only a few. So when it comes to choosing a designation, it all depends on what kind of work the person does, what kinds of organizations will hire him or her, and what kind of network exists. CFA charterholders are involved in investment, financial analysis, and corporate financial planning in large and small companies everywhere. These CFA's are located in commercial banks, investment banks, consulting firms, insurance companies, financial research foundations, and mutual fund companies, so the range of the network is wide. Since various types of organizations hire CFA's, this recognition and standard is also important at both the group and individual levels. The CFA network is over 100,000 strong in countries around the world. This is a large network, but when you consider that the focus areas of CFA's are fairly narrow, the network becomes and even better organizational and individual tool.

We've discussed the nuts and bolts of the CFA curriculum and content previously. But how does this have an effect on the recognition and standards that come with the CFA designation? The fact that the curriculum is updated annually and is completely overhauled every five years after heavy industry analysis creates a standard for both inside and outside the organization. This curriculum development process keeps the organization from having to "push" the recognition on an educational level, because marketing a changing, dynamic curriculum is easy. But the changes to the curriculum also indicate that any CFA charterholder will have current knowledge about the global financial markets. On top of this, the tri-level examination structure ensures that each person has knowledge, comprehends that knowledge, can apply it, and can go on to synthesize it as part of his or her every day activities.

Looking closer at the curriculum structure, the CFA Institute provides a learning experience that is broad-based, and, as we've discussed, covers a wide variety of topics. The experience uses professional journals and practitioner information as part of the curriculum. This type of learning should also serve to add to the recognition and standards defined by the CFA program.

If your organization's jobs fit the CFA standards, you may want to consider looking for candidates with the CFA designation - or putting your existing associates through the program. As you can see, the recognition and standards set forth by the CFA program can benefit both the organization and the individual.

Next, we will look at competencies covered, both implied and expressed, in the CFA program.

Copyright 2010 Financial Training Solutions & Bryant Nielson. All Rights Reserved.

Bryant Nielson - Director of Financial Training Solutions - assists executives, business owners, and top performing performers in taking the leap from the ordinary to extraordinary. Bryant is a trainer, business & leadership coach, and strategic planner for those in the capital markets. Nielson's 27 year business career has been based on his results-oriented style of empowering the individual..

Learn more about Financial Training Solutions and our various offerings at: http://www.financialtrainingsolutions.com/cfa-training.php.

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