CFA Jobs

The CFA (Chartered Financial Analyst) designation is one of the most prestigious and difficult to obtain goals for anybody in the financial services or banking industry.  Historically the CFA was seen as being necessary only for those seeking to pursue a career as an equity research analyst, however in recent years charter holders have expanded across the entire financial services industry, and now occupy positions of influence across a broad range of job descriptions. 

With the recent downturn in the global economy, specifically in the financial services industry, the CFA designation has become even more prized, as it demonstrates a high standard of professionalism and commands adherence to a strict ethical standard.  

Obtaining the CFA charter entails passing 3 exams as well as meeting four years full time relevant work experience.  The exams are particularly difficult.  The Level 1 exam is held every June and December across the globe, and typically only 30-35% of those who sit for the test pass.  The CFA Institute suggests that a candidate spend at minimum 200 hours studying for each level, although it can often take in excess of 300 or even 400 hours of study to be properly prepared.  Once the candidate has passed Level 1, they are able to sit for the Level 2 exam which is held one per year, in June.  Pass rates for Level 2 also hover in the 35% range, and many candidates believe this level is the most difficult to pass.  After passing Level 2, the candidate must pass the Level 3 test, also held annually each June, and pass rates for Level 3 are typically above 50%.  

Although the path to obtain your CFA can be arduous, it does have it's payoffs.  A recent survey of 16,000 CFA Institute members showed that people who have the charter typically earn 54% more than those who don't, $180,000.00 vs. $116,000.00.  That being said, it is important to note that often a CFA alone isn't enough to make a complete career switch.  While it is a useful tool to have, and is an excellent sign that you are committed to the industry, it is still extremely difficult to break into some higher paying career paths such as equity research or investment banking. 

Many struggle with the decision to pursue either a CFA or an MBA.  The process for a CFA can be much cheaper than an MBA at a top ranking school, somewhere in the range of $4000 for the CFA vs. $50,000 and up to complete an MBA at a top school.  On the other hand, while the CFA can theoretically be completed in 18 months, it is virtually impossible to do so, and the median time is apx. 4 years to finish, whereas most MBA progams are only a year or two in length.  But then again, the CFA is usually completed while the candidate works full-time, and an MBA program often requires that the student leave the workforce for the duration of the program. 

To make a decision, it is best to consider what career path you want to take.  The CFA is fundamentally different than an MBA from the perspective that the CFA is exclusively focused on the investment management business, where an MBA is more broadly focused. As far as earnings go, one survey showed that CFA holders with 10 years experience earn 17% than MBAs.