EMEA KIMI

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EMEA KIMI

• Feb 2, 2009

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Characteristics of the CFA Program

• Relevance
• Practice analysis to define curriculum
• Principles relevant in every market around the
  world
• Rigor
• Work experience requirement (4 years)
• Only 19 complete the entire 3-exam program
• Great equalizer
• Recognition
• CFA Charter recognized globally

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Global Passport The CFA CharterMembers
Locations
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Charterholders
As of 1 September, there were 82,902 active
charterholders worldwide (more than 100,000 have
been awarded).
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Candidate Enrollments (for December 2007 and June
2008 exams)
U.K. 11,575
Korea 7,366
Canada 14,576
Europe 28,216
Hong Kong 12,052
U.S. 55,959
P.R. China 15,946
Taiwan 3,414
Middle East Africa 10,025
Latin America 2,916
Singapore 7,767
Australia 4,123
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Candidate Makeup
June 1993
June 2008

• 68 non-U.S.
• 73 Male
• Age 30

• 32 non-U.S.
• 78 Male
• Age 31

Self-reported data
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CFA ProgramHistorical Combined Pass Rates
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2007 and 2008 Exam Results

• June 2008
• More than 92,000 candidates sat for the June 2008
  exam
• Pass rates
• 35 at Level I
• 46 at Level II
• 53 at Level III
• December 2007
• More than 37,000 candidates sat for Level I in
  December with a pass rate of 39

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Benefits of the CFA ProgramRespect and
Credibility
Most common occupations of CFA charterholders
CEO/Principal Investment Counselor Chief
Investment Officer Investment Firm Manager
Equity Analyst Portfolio Manager Fixed
Income Analyst Portfolio Strategist
Investment Banker Sales/Marketing Professional
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Benefits of the CFA ProgramDiverse Career
Opportunities
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Benefits of the CFA ProgramEmployers with
Largest Numbers of CFA Charterholders
UBS BMO Financial Group Citigroup Allianz
AG JP Morgan Chase Co. FMR Corporation RBC

PricewaterhouseCoopers B
ank of America Mellon Financial Credit
Suisse ABN AMRO Bank HSBC ING Morgan
Stanley Scotiabank Group Goldman
Sachs Wells Fargo Deutsche Bank State
Street TD Bank Financial Group Deloitte Wachovia
Prudential Financial CIBC AMVESCAP Barcla
ys KPMG
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High Regard for the Charter Job Postings
Switzerland
CFA charterholders or candidates in the CFA
program are to be favored
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High Regard for the Charter Job Postings

• ING Wholesale Banking
• Equity Analyst Benelux and Nordic Banks
• ING is a pan European broker that search an
  equity analyst to join the banking team to cover
  Benelux and Nordic stocks. The location can be
  either London or Amsterdam (possibly Brussels).
  The role requires modeling, forecasting, writing
  research and market research with institutional
  clients.
• Requirements At least 5 years experience doing
  research either on the buy side or sell side.
  Strong analytical and communication skills. An
  equivalent experience in consultancy or banking
  could be considered. CFA charter is a must.
  Dutch speaker preferably.

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Benefits of the CFA ProgramKnowledge
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High Regard for the Charter Financial Times

• The big attractionis that the CFA charter
  qualification becomes a second passport, an
  international gold standard.
• Rise of the grueling professional exam
• Financial Times
• 22 May 2006

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High Regard for the Charter The Economist

• Whereas there are tens of thousands of finance
  degrees available around the world, ranging from
  the excellent to the worthless, there is only one
  CFA, managed and examined by an American
  association of financial professionals, the CFA
  Institute. It used to be just an American
  qualification. But explosive growth has made it,
  in effect, global currency.
• The Economist
• 26 Feb.-4 Mar. 2005

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Preparation for the CFA ExamsValuable Learning
Experience
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What is the CFA Program?Learning Tied to Current
Practice
Practice analysis determines topics taught in
the CFA Program Involves investment
practitioners worldwide Regional expert
panels and member surveys The question asked
in practice analysis is What knowledge and
skills are needed by an investment professional
with four years of
experience? Candidate Body of Knowledge
(CBOK), curriculum, learning outcome
statements (LOS) and exams all based on what
practitioners need to know
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GBIKTM and the CBOKTM

• Global Body of Investment KnowledgeTM
• The GBIK is the comprehensive outline of
  mainstream knowledge for the investment
  profession, encompassing an entire career
  novice through expert for both generalists and
  specialists.
• Candidate Body of KnowledgeTM
• The CBOK is the inventory of knowledge and
  responsibilities expected of the professional
  practitioner of investment management at the
  level of a new charterholder. The CBOK,
  resulting from practice analysis, is organized
  into four functional areas Ethical and
  professional standards, investment tools, asset
  valuation, and portfolio management. The CBOK is
  the roadmap for CFA curriculum development.

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The CFA Course of StudyCFA Body of Knowledge
Ethical and Professional Standards
Quantitative Methods Economics Financial
Reporting and Analysis Corporate Finance
Equity Investments Fixed Income
Derivatives Alternative Investments
Portfolio Management and Wealth Planning
Investment Tools
Asset Classes and Valuation
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What is the CFA Program?Three Levels and Three
Exams
Level I Knowledge and comprehension of
fundamental investment tools and concepts Level
II Application and analysis focused on asset
valuation Level III Synthesis and evaluation of
client needs and portfolio management
issues Ethical and professional standards are
emphasized at every level.
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The CFA Course of StudyThree Levels  Topic Areas
Percentages are average approximations of the
actual topic weights for exam purposes, which
have a range of target weights. Actual content of
future exams may vary.
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What is the CFA Program?Practical, Relevant
Education
COE
EAC
EXAMINATIONS
CURRICULUM
GRADING
STANDARD SETTING
BODY OF KNOWLEDGE?
Practitioners at every step of the process
MINIMUM PASSINGSCORE (MPS)
PRACTICE ANALYSIS
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The CFA Examinations2008 Exam Format
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Examinations

• Multiple choice Stand-alone individual multiple
  choice questions 1 question 1.5 minutes, exam
  240 questions 360 points
• Essay Discussion-type and problem-solving
  questions ½ exam typically 10-18 questions
  with variable minutes 180 points
• Item set Vignette with set of accompanying
  related multiple choice questions (items) 1
  question 3 minutes, 1 item set 6 questions, ½
  exam 10 item sets 180 points

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Sample Question

• According to the Standards of Practice Handbook,
  which
• of the following activities is least likely to
  breach a
• members duty to a client?
• a. Failing to establish the investment
  objectives of the client
• b. Using soft dollar arrangements to pay firm
  management expenses
• c. Disclosing confidential client information to
  the CFA Institute Professional Conduct Program

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Registering for the CFA ProgramCFA Charter
Requirements
Sequentially pass Levels I, II, and III
exams Have four years of acceptable work
experience Provide professional references
(Level III) Join CFA Institute as a member
and apply for
membership in a local CFA Institute
society Sign and submit professional conduct
statement
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Registering for the CFA ProgramConnecting with a
Local Society
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Registering for the CFA ProgramThree Ways to
Register
Register online at www.cfainstitute.org
Download forms from the CFA Institute
website and register by mail Contact CFA
Institute for a paper CFA exam registration
and enrollment package
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Registering for the CFA Program1st Year Program
Costs June 2009 Exam
Approximate costs for new Level I
candidates Enrollment fee to enter CFA
Program US390 Registration fee for Level I
examination US600 Custom curriculum
included! Approximate total costs for Level I
US990 Registration
enrollment by 1st fee deadline.
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Registering for the CFA ProgramImportant
Deadlines
June 2009 Examinations 24 September 2008
Enrollment 390 Exam Registration 600
990 1st February 2009 Enrollment 390 Exam
Registration 690 1080 15th March
2009 Enrollment 465 Exam Registration 930
1395 Enrollment is program enrollment for new
candidates only and is a one-time fee. Returning
candidates pay only the exam registration fee
www.cfainstitute.org/cfaprog/register/fees.html
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Scholarships for the CFA ProgramThree
Scholarship Programs
Student scholarships for new Level I
only Awarded by qualified CFA charterholder
full-time faculty members or by University
Partner Programs Faculty scholarships available
for any Level Awarded to qualified full-time
faculty directly by CFA Institute Society
scholarships available for any Level Awarded
to qualified candidates by local CFA Institute
society http//www.cfainstitute.org/university/ove
rview.html Registration fees waived
candidate pays 220 in December 2008 (curriculum
included)
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Custom Curriculum

• Six volumes at each level represent the entire
  curriculum.
• The exam registration fee includes the complete
  curriculum and one sample exam.

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Curriculum

• Each study session is designed for flexible,
  self-directed study
• Readings are drawn from a variety of materials,
  published by CFA Institute and other sources
• Each reading has learning outcome statements
  (LOS) The candidate should be able to
• Each LOS has one or more command words, which
  indicate type of learning expected discuss,
  calculate, contrast
• LOS are NOT an exact proxy for examination
  questions, but mastering LOS is the best study
  approach

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Study Session 1

• ETHICS AND PROFESSIONAL STANDARDS
• The candidate should be able to
• describe the structure of the CFA Institute
  Professional Conduct Program and the process for
  the enforcement of the standards
• state the six components of the Code of Ethics
  and the seven Standards of Professional Conduct
• explain the ethical responsibilities required by
  the Code and Standards, including the multiple
  subsections of each standard

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The Candidate Toolkit

• Single, comprehensive location for candidate
  preparation
• Interactive preparation guide
• How to use the curriculum
• Online sample exams
• Study tips
• Website www.cfainstitute.org/toolkit

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Candidate e-newsletter

• Published every 4 to 6 weeks
• Time-appropriate preparation information
• Focus on curriculum early in cycle
• Focus on exams later in cycle
• Provides study tips
• Asks for candidate feedback and reports results
  in following issues

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Preparatory Courses and Materials

• Candidates should use preparatory courses and
  materials only as supplements to the CFA
  Institute prescribed curriculum
• CFA Institute does not review or warrant the
  accuracy of any preparatory materials
• Preparation is the key to success on the
  examinations there are no shortcuts to success
• If you use a prep course we recommend that you
  consider those prep courses that have signed on
  to our voluntary prep provider guidelines program
  (http//www.cfainstitute.org/cfaprog/resources/pre
  pcourse.html)

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More Information About the CFA Programwww.cfainst
itute.org
Europe One Canada Square, 10th Floor Canary
Wharf London E14 5AB United Kingdom Phone 44-2
0-7531-0751 Fax [phone]
E-mail info_at_cfainstitute.org Website
www.cfainstitute.org
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Characteristics of the CFA Program

• Relevance
• Practice analysis to define curriculum
• Principles relevant in every market around the
  world
• Rigor
• Work experience requirement (4 years)
• Only 19 complete the entire 3-exam program
• Great equalizer
• Recognition
• CFA Charter recognized globally