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CFA Institute, headquartered in Charlottesville, Virginia, is a world-wide membership organization for the financial investment industry, comprising more than 70,000 members. CFA Institute has established a Code of Ethics and Standards for Professional Conduct for the investment industry; its members, candidates, and charterholders agree to abide by the Code and Standards. CFA Institute offers the Chartered Financial Analyst® (CFA®) designation, a globally-recognized standard of professional excellence in the investment industry.
History of CFA Institute In 1925, the Investment Analyst Society of Chicago was formed to promote investment education and professionalism. In 1937, the New York Society of Security Analysts (NYSSA) was established, and by 1947, analyst societies had formed in several other cities. In that year, four founding member societies – New York, Chicago, Boston, and Philadelphia – merged to create the National Federation of Financial Analysts Societies (NFFAS); they were quickly joined by new societies emerging in other cities. By the late 1950s, the NFFAS consisted of more than 20 member societies that were increasingly concerned with professionalism, standards, and ethics for the investment profession. By 1964, the NFFAS had changed its name to the Financial Analyst Federation (FAF).
In 1959, the NFFAS board voted to form the Institute of Chartered Financial Analysts (ICFA) to develop a certification program. In June, 1963, the first certification exam was given, with 268 securities analysts passing the exam and earning the CFA® charter. In 1964, the ICFA established a set of three examination levels and adopted a required Code of Ethics.
In 1990, the Association for Investment Management and Research® (AIMR®) was formed as the parent organization for the ICFA and the FAF. In 1999, the ICFA and the FAF were merged under AIMR®, and in 2004, the name of the organization was changed to CFA Institute.
CFA® Designation To earn the CFA® designation a candidate must pass a series of three examinations, have four years of work experience in the investment decision-making process, and agree to abide by the CFA Institute’s Code of Ethics and Standards for Professional Conduct. The curriculum for the examinations is based on a Body of Knowledge established by CFA Institute and includes:
Ethics and Professional Standards
Quantitative Methods (such as the time value of money, and statistical inference)
Economics
Financial Statement Analysis
Corporate Finance
Analysis of Investments (stocks, bonds, derivatives, venture capital, real estate, etc.)
Portfolio management and Analysis (asset allocation, portfolio risk, performance measurement, and so on)
The CFA® designation is an important qualification for professionals in the financial and investment industries. Many firms require the designation for professional advancement. The CFA® designation is considered amongst the most prestigious in the financial world, and studies have shown that charterholders earn salaries 20% higher than their peers with comparable credentials in equivalent positions. To learn more about CFA Institute and the CFA® designation, go here. |
