For those that do not subscribe to Fundfire… Poll: CFA Is Important for Career Success Article published on June 24, 2009 By Gregory Shulas The CFA designation gives an important lift to the careers of professionals in the institutional and wealth management industries. That’s according to a majority of FundFire poll respondents. Roughly 55%, or 684 voters, said the credential significantly influences a professional’s ability to get ahead. That made it the top sentiment expressed in a FundFire survey on the CFA designation’s impact on career success. The majority sum included 31%, or 386 voters, who said the CFA credential is “important” for professional achievement, including promotions, as well as 24%, or 298 voters, who said the credential is a “very important” career-building tool. In contrast, about 44%, or 554 voters indicated that a CFA designation is not a crucial door-opener for institutional and high-net-worth money management professionals. Of this minority tally, 36%, or 449 voters, said the CFA is “helpful but not that important,” while 8%, or 105 voters, said the CFA is “not necessary” for career success. FundFire has reported that many large asset management firms allow employees paid time off to prepare for the CFA exams. The trend comes as a growing number of sales and marketing professionals are pursuing the designation. (Click here for FundFire article, “Managers Offer Days Off to Prep for CFA Exam.”) The CFA designation is considered to be the most rigorous designation process in the investment management industry. According to the CFA Institute, the historical pass rate, from 1963 to 2008, for all three levels of the CFA is a combined 50%. The exams typically require most people to prepare for several months in advance. The MBA degree is also seen as a significant career building credential in the institutional money management space but less so in the high-net-worth space. In an April 29, 2008, FundFire poll, roughly 51% of voters with institutional career backgrounds said receiving an MBA was necessary to succeed. In contrast, only 32% of participants with high-net-worth backgrounds said a MBA was crucial for such success. As of 3 p.m. Tuesday, 1,238 FundFire subscribers participated in the survey. Participants were self-selected and were only able to vote once. The survey serves as an unscientific sampling of FundFire’s audience, which consists of asset managers, institutional investors, consultants, financial advisors and service providers.
I saw that and voted yesterday
Likely those who voted that it did not help career probably have failed the exams in the past. It has given me my career. The program has helped me triple my salary in 3 years.
What firm do you work for? I got sh*t from my firm for passing each level.
Big jump in salary came as I switched jobs.
Rydex Wrote: ------------------------------------------------------- > Likely those who voted that it did not help career > probably have failed the exams in the past. It > has given me my career. The program has helped me > triple my salary in 3 years. You are up to $21 per hour now?! Dayyyyym!! :-)~ I wouldn’t have my current job (or my current prospects) if it wasn’t for the CFA.
It was a major (but not the sole) factor for me.
I am an idiot this morning (and perhaps for longer periods.) Does this statement mean that, on average over this period, 50% passed through the program, or 12.5%? “The CFA designation is considered to be the most rigorous designation process in the investment management industry. According to the CFA Institute, the historical pass rate, from 1963 to 2008, for all three levels of the CFA is a combined 50%. The exams typically require most people to prepare for several months in advance.”
TheEconomist Wrote: ------------------------------------------------------- > I am an idiot this morning (and perhaps for longer > periods.) Does this statement mean that, on > average over this period, 50% passed through the > program, or 12.5%? > > > > “The CFA designation is considered to be the most > rigorous designation process in the investment > management industry. According to the CFA > Institute, the historical pass rate, from 1963 to > 2008, for all three levels of the CFA is a > combined 50%. The exams typically require most > people to prepare for several months in advance.” I don’t think either. It means that the average pass rate the (combined for all three levels) was about 50%. I see where you get the 12.5%, but that is making a few assumptions that probably don’t hold.
So what is the average pass rate through the entire program? Maybe it’s not such a dumb question after all.
TheEconomist Wrote: ------------------------------------------------------- > So what is the average pass rate through the > entire program? Maybe it’s not such a dumb > question after all. According to CFAI - 20%. 1 out of 5. Average year - 4 years and average age of candidate is 28
It’s saying that if you average the pass rates of level 1, 2 and 3 over the referenced 40 year period, you come out with a back of the envelope “50% pass rate.” That’s an asinine way to do the math since 1) the average rate across three levels is meaningless because the pass rate varies significantly by level, and 2) the historical data skews the average upwards by a lot since they used to give the charter away. That’s why this person works in journalism instead of finance 
The only pass rate that really matters is the one of the exam you just took. However, the the compound pass rates for the exams you passed in order to get the charter is also sort of cool, even if misleading. It’s cool to realize that you just slammed through all three levels in 18 months with a compound pass rate of 6-7% (of course that math is a little flawed due to retester bias, but it’s the best we can do). As for the survey, most of the successful people I meet in the industry don’t have the CFA (noun), so I don’t think it’s that important in the long-term. Short-term, it can give a nice boost.
If you do have qualification to be chartered, CFA is just an icing on the cake. It just gives you another alphabets to awe people Mostly CFA is for new grads or people who want to switch career to prove their interest. But under the current economy, CFA is useless for the latter group.