CFA Program and CFA Society Italy Milan, 20th January 2014
Content INTRODUCTION: CFA INSTITUTE AND THE CFA PROGRAM A CAREER IN CFA SOCIETY ITALY HOW TO BECOME A CHARTERHOLDER AND A MEMBER
INTRODUCTION: CFA INSTITUTE AND THE CFA PROGRAM
CFA Institute: based on the ideas of the Father of financial analysis
CFA Institute members 100.000 professionals skilled people operating around the world committed to continue education. 100.000 professionals who believe that ethics is not abstract value but a concrete way to protect the integrity of the markets incrementing investor confidence. 100.000 professionals who enjoy a unique viewpoint on evolving trends and engage in analysis of new scenarios to protect the interests of investors.
CFA Charter: values Global It certifies worldwide the real expertise on the world financial markets Rigorous The high quality standards required for passing the certification exams are universally recognized Ethics Ethics is studied and practiced: the lack of adherence to shared ethical principles imply the cancellation of the certification
CFA Program and CFA Designation What do they say about it? 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 Feb. 26-Mar. 4, 2005
The CFA Program and CFA Charter Three exams, taken sequentially across 3-4 years - The most rigorous in the investment profession Self-study curriculum Grounded in ethics -10% of curriculum focuses on ethics - members and candidates must sign annual ethics statement Four years work experience in the investment profession before gaining the CFA charter CFA charter provides strong foundation for a variety of career choices in the investment profession. Employers and media around the world recognize the CFA charter as the standard of professional excellence. With such widespread recognition, CFA charterholders earn a significant competitive advantage for international employment.
The CFA Program and CFA Charter CURRICULUM TOPIC BREAKDOWN BY EXAM LEVEL
The CFA Program and CFA Charter
Learning Tied to Current Practice Practice Analysis determines topics taught in the CFA Program Conducted every five years: currently in 2005-2006 Involves investment practitioners worldwide: Regional Expert Panels and member surveys What knowledge and skills are needed by an investment professionals? CBOK, curriculum, LOS and exams all based on what practitioners need to know
CFA Body of Knowledge Ethical and Professional Standards Quantitative Methods Economics Financial Statement Analysis Investment Tools Corporate Finance Analysis of Equity Investments Analysis of Debt Investments Analysis of Derivatives Asset Valuation Analysis fo alternative Investments Portfolio Management
CFA Program Custom curriculum Six volumes at each level represents the entire curriculum. Each study session is designed for flexible, self-directed study Each reading has learning outcome statements (LOS) Discuss the rationales for, and the possible drawbacks to, the use of price to earnings (P/E), price to book value (P/BV), price to sales (P/S), and price to cash flow (P/CF) in equity valuation. 13
The importance of Ethics All too often, the public view is that the financial services industry has failed to do the right thing The challenge is to translate the aims and objectives of millions of individual participants in the industry to deliver an end result with which all concerned participants, customers, governments, etc. are satisfied.
What do ethics actually mean in the context of the financial industry? It is a fundamental requirement of the investment profession. Ethics protects the integrity of the capital markets. Ethics Increases investor confidence in global capital markets. Ethical practices instil a public trust in the fairness of markets, allowing them to function efficiently
What more needs to be done to bring ethics to the front of the debate? CFA Institute will continue to reinforce the value of sustaining sound ethics in the profession through education, codes and standards, letters and public commentary and policy research It is CFA Institute mandate to keep ethics at front of mind for investment professionals, regulators, and firms across the globe
CFA Institute Code of Ethics High ethical standards are critical to maintaining the public s trust in global financial markets and in the investment profession. The more than 100,000 members of CFA Institute of whom 93,000 across 137 countries hold the respected CFA designation adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct ( Code and Standards ) Self regulation and enforcement of these fundamental professional standards has served as a model for measuring and promoting the ethics of investment professionals around the world
A CAREER IN
What will you do next? A career in INVESTMENT MANAGEMENT Institutional Investment Management Retail Investment Management Private Client/Wealth Management Hedge Funds Private Equity Risk Management Performance Measurement Client Relationship Management Portfolio Administration Asset Allocation Trading Equity Research Fixed Income Research BANKING Corporate Finance M&A Fixed Income Equity Cash /Derivatives Prime Brokerage Foreign Exchange Commodities Research Funding and Finance Sales and Trading Origination - Debt and Equity Capital Markets
Key Competences the Market is looking for ANALYTICAL SKILLS Corporate Finance Economics Financial Reporting Quantitative Methods Derivatives Equity Investments Fixed Income
People who hire say: We look for strong academics, but candidates really need to stand head and shoulders above their counterparts. They have to have a good understanding of the economics of the business and they have to be very commercial. Confidence is also extremely important. One important trend is globalisation. People with local knowledge for certain types of asset classes and strategies have an advantage. Candidates who are willing to be flexible about their location will have greater opportunities.
People who hire say: For people entering the industry now therefore, things will look very different than they did a decade ago. For the most part, new entrants will need to develop specialist knowledge very quickly, and they will have to succeed in a global marketplace with competition from all fronts. At the same time however, some observers believe that now is the best time to enter the industry: Those who begin their careers now are going to have a very clear idea about what life was like in today s harsh environment. Wrestling with the bear now, therefore, may be as much of an opportunity as it will be a challenge.
Types of Positions that Benefit from a CFA Charter The CFA charter provides you with a strong foundation for a variety of career choices in the investment profession. 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.
The CFA Program and CFA Charter WHAT JOBS DOES THE CFA CHARTER PREPARE YOU FOR? WHO EMPLOYS CFA CHARTERHOLDERS?
Mapping Careers in the Investment Profession
Example Careers Required Skills: Strong Analytical Background, i.e. master mathematical and statistical concepts Ability to interpret annual reports, i.e. good accounting knowledge Soft skills: good communication skills
Example Careers Required Skills: Strong Analytical Background, i.e. master mathematical and statistical concepts and good programming abilities Ability to interpret dynamics in economics Soft skills: ability in summarize information and perspectives into a final assessment
Example Careers Required Skills: Strong Analytical Background, i.e. master mathematical and statistical concepts and good programming abilities Ability to interpret corporate variables and industries dynamics Soft skills: ability in summarize information and good communication skills
CFA SOCIETY ITALY
CFA Society Italy Fast Facts Established in 1999 as not-for-profit organization of investment professionals who agrees to abide by the Code of Ethics and Standards of Professional Conduct promoted by CFA Institute Promotes the highest ethical and professional standards within the Italian investment industry and encourages professional development through the CFA Program and the CIPM Program Network of 390+ members employed by the major companies within investment industry (asset management, private banks, insurance) Affiliated with CFA Institute, the global, not-for-profit association of investment professionals that leads the investment industry by setting the highest standards of ethics, education, and professional excellence. Network of 137 Societies worldwide offers exchange of ideas and professional experience with peers throughout the globe and on a European level.
CFA Society Italy: our commitment Reference point for Charterholders operating in Italy Promoter of CFA Institute values Support to candidates during the course of studies Events on financial markets topics, networking. newsletter Events on financial markets topics, newsletter Candidate briefings, Exam focus, Mock Exam, Courses
CFA Society Italy: Our Major Activities We offer an ongoing series of events for investment practitioners and a wide range of educational opportunities throughout the year Focus on industry - market analysis and development perspectives, updates on regulatory issues in partnership with some of the main investment businesses Forecast Event annual forecast on markets with the most famous speakers CFA Award Dinner celebration of the new CFA Charterholders and networking among society members, investment professionals and the media Career Events outlook on professional identity in time of change and soft skills workshops Jobline exclusive access for CFA Candidates and senior professionals members Connections with Italian business colleges Research Challenge, Fund Management Challenge
Research Challenge Courses - Corsi di Laurea Magistrale in Scienze dell Economia, Scienze Economico- Aziendali, Ingegneria Gestionale and similar courses Topics The competition simulates real market conditions in which student analyst teams write and present their recommendation report on a stock listed on the Italian Stock Exchange, as Equity sell-side analysts do. Students, supported by a mentor, learn to apply analytical techniques, using leading industry tools and software, such as Bloomberg. Networking opportunity The Italian contest is a major opportunity for university students to meet senior professionals and head hunters. Deadline October 2013 For more information: segreteriacfaitalia@cfasi.it
Fund Management Challenge Courses The Fund Management Challenge is an annual competition for university students in Italy completing a Master s degree. Topics The competition simulates real market conditions in which student management teams select equities to build a successful investment fund. Students learn the importance of ethical behavior, while applying legal frameworks, portfolio management techniques and using leading industry tools and software such as FactSet. Awards Competition winners will be able to choose between a monetary prize or tax-free CFA Level I scholarships. Deadline December 2013 For more information: segreteriacfaitalia@cfasi.it
HOW TO BECOME A CHARTERHOLDER AND A MEMBER
How to become a CFA Charterhoder 4 3 2 1 3 exams, which requires the knowledge of a rigorous theoretical basis and the ability to solve practical cases based on the most modern reality of financial markets around the world. Becoming part of 2 networks, at the local level and at the international stage 4 years of professional experience Adhering to 1 rigorous Code of Ethics, that in the event of inappropriate behavior foresee sanctions from the Association
CFA Society Italy at a glance CFA Society Italy is the Association that gathers the Italian Professionals who have earned the Chartered Financial Analyst (CFA) designation and, in Italy, it represents CFA Institute, the leading Association in the financial world.
C F A S I Charter Financial Analyst Society Italy In compliance with projects defined at the global level by CFA Institute, the most prestigious association of professionals in the financial world Not-for-profit association Focusing on the peculiarities of our country
CFA Society Italy: Membership We offer three types of membership Regular membership CFA Charterholders and senior professionals who can take advantage from a wide range of benefits both from CFA Institute and from CFA Society Italy Affiliate membership junior professionals who can take advantage from a wide range of benefits both from CFA Institute and from CFA Society Italy Junior membership CFA Candidates who can take advantage from a wide range of benefits from CFA Society Italy, particularly focused on supporting them in achieving the CFA certification For more information membership@cfasi.it
Contact us For any kind of information write to info@cfasi.it Subscribe to our by-monthly newsletter from our website homepage www.cfasocietyitaly.it Thank you! CFA Society Italy