Finance industry professionals troop to benchmark test
A GLOBALLY recognised exam - regarded as the gold standard for financial market literacy - attracted a record number of candidates in Singapore over the weekend.
Market observers said a 66 per cent jump in the number of new candidates who signed up for the chartered financial analyst (CFA) exam reflected Singapore's growing status as an important financial centre.
Many top financial sector employers now demand CFA qualification from the analysts and fund managers they hire.
BETTER CAREER PROSPECTS
THE chartered financial analyst exam was created in 1953 in the United States to teach core investment principles to securities industry professionals, including fund managers and investment analysts.
It is a self-study programme. Even though the passing rate is about 50 per cent and there are three levels, it has become so popular that many people in the finance industry take the exam as they see it as a stepping stone to better career prospects.
Most candidates take about three years to attain the qualification, as they need sufficient relevant working experience.
In Singapore, there are 2,456 charter holders compared with a worldwide membership of about 65,580.
There were 4,019 new candidates for the December 2007 and June 2008 sittings, up two-thirds on last year, according to the United States-based CFA Institute. The rest were repeating the notoriously tough exam, having failed previously.
That gave Singapore the second highest growth in CFA new exam entrants in the world. Only China, with 7,778 new candidates, boasted a higher rate - 68 per cent.
The exam needs up to three years of preparation. There were 5,785 candidates who came to the Singapore Expo over the weekend. As in most years, last-minute nerves meant a number failed to show up. The CFA Institute says about a quarter typically do not turn up.
Responding to The Straits Times' queries, the CFA Institute said the 66 per cent surge was the strongest growth in the number of new candidates seen here in recent years. Last year, it was at 48 per cent. One possible reason: Candidates want to upgrade to compete with global job seekers.
The CFA Institute said: 'Fundamentally, candidates are looking to better themselves... The CFA designation affords a significant reassurance and benchmark for both employers and employees.'
Mr Mark Ellwood, the managing director at recruitment specialist Robert Walters, said Singapore's financial sector had grown a lot in recent years.
Not all finance industry jobs require a CFA charter - only those in investment banking or fund management.
'For those in the industry, the qualification enables them to further their understanding of the subject,' said Mr Ellwood. 'For those hoping to enter the industry, it also demonstrates their interest.'
Mr Paul Greene, the co-head of HR Singapore at Swiss bank UBS, said: 'For certain positions within the investment bank and asset management, a CFA is a prerequisite. For other positions within the financial services industry, it is a definite consideration in the hiring process, balanced with factors such as experience.'
Fullerton Fund Management also gave the CFA charter the thumbs-up.
'When evaluating a candidate, all things being equal, the CFA charter is definitely a welcome endorsement of a candidate's capability and potential,' said chief executive Gerard Lee.
Ms Clare Tan, 26, a media industry worker, took the exam. 'The qualification is well-regarded and hopefully will give me more options in my career,' she remarked.
Still, the financial sector's shaky state has raised concerns there may not be enough jobs for CFA holders.
HR consultancy Robert Half's Tim Hird is fairly optimistic: 'Despite the sub-prime crisis and global economic slowdown, demand for finance and banking professionals in Singapore is expected to continue growing.'
This article was first published in The Straits Times on Jun 10, 2008
