Careers

Surely one charter is enough...?

You would think that after all the hard work that goes into gaining that all-important accountancy qualification you would have reached the pinnacle of professional status. But in today's tighter jobs market, is one set of professional letters after your name enough?

Would it improve your job prospects to be ACA CFA, CIMA FRM, or even ACCA CFQ? Would this 'alphabet soup' open doors to roles that are usually beyond the reach of mere mortal accountants? Would it make your boss value you more?

Chartered Financial Analyst
Run by the Chartered Financial Analyst Institute in America, this qualification has been described by The Economist as the 'gold standard' in the finance industry. It was originally aimed at fund managers and analysts, but has since been adopted as the qualification of choice for many in the City. There is no doubt that being both a qualified accountant and having the CFA Charter would put you in a very select, well-qualified group.
There are three levels that have to be sat in order. There are no exemptions, and given that the second and third levels are sat only once a year (June), this puts a limit on how quickly you can progress to level 3. The content is broad, but some of it will be reassuringly familiar to qualified accountants. There is a significant section on financial statement analysis, but the focus is not on the preparation of accounts, it is on how analysts review accounts and look for manipulation.
In addition to the familiar territory of accounts, there is a lot that accountants can learn about how the financial markets work. We may know how to value a bond (a simple one at least) but do we know how the bond markets really work? What about the asset-backed securities and the fascinating (and dangerous) world of derivatives? We may know the outline of how a swap works, but what about pricing or valuing one? And what do all those hedge funds do within the black boxes of their financial models? More importantly, what are the risks?
If those questions interest you, there is a lot you could gain from studying for the CFA examination. You will also learn to use a very clever financial calculator that means an end to those annuity tables and IRR calculations.
Increasingly, financial sector employers are expecting candidates to have made a start on this qualification, even if they have not progressed beyond level 1. What it will add to a qualified accountant looking to move into this field is proof of interest in the financial markets, and this may open doors to a wider range of roles. To get the letters after your name you would also have to demonstrate four years' work experience, but beyond having a degree and a willingness to study there is no restriction on who can sign up.
As a taster you could try the Investment Management Certificate, which is run by the UK CFA Society. In a recent survey, most people studying for this exam said they were doing it not because they had to, but because it would improve their CV and teach them about the financial markets. That is a good positive approach towards taking more exams.

Financial Risk Manager
Run by the Global Association of Risk Professionals (GARP), FRM is a newer qualification, with the advantage of only having two exams to pass (in May and November). The exam is aimed at the growing profession of risk managers, often in what is loosely described as 'middle office'. Financial institutions spend a lot of time monitoring the risks they are taking across the business, and the responsibility for this should go right up to the top of the organisation. With recent events in the financial markets, and the ensuing questioning of board members on their understanding of risks taken, there is likely to be increasing demand for people with an analytical eye for detail and an appreciation of the financial risks being taken by the business.
For an NQ accountant, there is not likely to be a lot of natural overlap between their accountancy training and FRM. However, for someone with an interest in financial markets and statistical techniques, this qualification presents a valuable opportunity to learn new skills and build an impressive CV.

CF qualification
Unlike the other two qualifications, this one has its roots closer to home. The ICAEW teamed up with the Canadian Institute of Chartered Accountants and the Securities and Investments Institute to produce a three-level qualification. The good news for qualified accountants is that there is no need to sit the first level so they can progress straight to the diploma level. The exam is scenario-based and very useful for people in, or wishing to move into, the area of corporate finance.
Beyond the diploma is the advanced diploma. This level is far more practical, being examined through a case study and with group work and presentations forming an integral part of the training.

Can you face more exams?
The answer should be yes, if we think of exams as providing an opportunity to learn more and develop our skills.
We can't rest on our laurels if we want to progress. The more we can be multi-skilled, the better it is. If we are involved in providing assurance or advice for financial services clients it is a big advantage to be fluent in their language and to understand the risks they face. And, of course, if we want to develop our careers in that area, we need to be aware of the qualifications respected in those fields.

* Louise Undrill is head of course design for the CFA Programme at BPP Professional Education

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