Work Experience - Managing Family Money for a Performance Fee

CFA Level III
#1

First off, congrats to everyone who passed level III and the new charterholders.

I passed level 3, but have only been out of college and accumulating relevant full-time work experience for 3 years. However, when I was in school, I managed family money for several years and was compensated with a performance fee.

In regard to eligible work experience, The CFA Institute’s website states: “Managing your own investments or the investments of your family or friends (without compensation) does not qualify”.

Does anyone know if managing family money for a performance fee would count as eligible work experience? If not, I’ll have to wait another year, but It would be nice to get this all out of the way ASAP.

Thanks

#2

I doubt anyone here will be able to answer that for you. Your best bet would be to either email the CFAI or submit this portion of your work experience with the explanation and see if they approve it.

#3

It has to be full time experience, so managing money on the side won’t count (even if you did receive some form of compensation.)

Even if it was “full time” (ie, let’s say you were out of a job and your family/friends threw you a bone to keep you busy) I can’t see that getting approved unless you actually had a registered/regulated company along with proper licensing, IMA/IPS for each client, etc. The CFAI is pretty clear in sending the message that only full time, professional work experience counts and they pretty much go out of their way to say that managing family/friends money doesn’t count unless it’s truly your full time job.

Personally, I’d just join your local society and start networking and wait until you have four years of real experience. You passed the exams, and to most employers looking for CFA candidates/charterholders that is going to be enough at your age/experience level.

#4

I’d be very careful with this one. For example, in the US you need to be licensed to do this. If they were simply slipping you cash on the side you are probably breaking the law.

#5

Thanks for the replies guys. I did email the CFAI last week and they said they couldn’t say whether or not it would count until I applied. I doubt that it will and googs makes a good point about not being licensed. It’s not worth the risk so I’ll just wait until next year when I definitely have 4 years of experience. At least the hard part is over.