Advertisement
Advertisement

Qualifications that inspire confidence

Financial planners and analysts took a big hit when the economic crisis reared its ugly head. However, the crisis has fuelled a need for knowledgeable and trusted advisers, and more people in the profession have sought to boost their credentials by gaining professional certifications.

The Certified Financial Analyst (CFA) designation has long been regarded the 'Rolls Royce' of professional education. Despite the financial tsunami, the CFA Institute in Hong Kong has seen registrations increase globally in the last fiscal year by 14 per cent to almost 200,000. In Hong Kong, the number dropped by 3 per cent, but across Asia and the mainland there was robust growth.

There are now about 4,400 CFA charter holders in Hong Kong with 1,800 on the mainland. Ten years ago there were just 10.

According to Ashvin Vibhakar, managing director of Asia-Pacific operations at the CFA Institute, most CFAs tend to work as portfolio managers (25.6 per cent), research analysts (16.5 per cent), CEOs (7.5 per cent) and consultants (6.1 per cent). Institutionally, more than 92 per cent of CFAs work in financial services with fewer than 4 per cent in government.

What makes the CFA a challenge to attain are the 10 quantitative areas that must be mastered via exams requiring up to 900 hours of preparation. Pass rates in recent years have been 50 per cent or lower.

Vibhakar believes that irrespective of economic conditions, CFA charter holders always bring to the table the knowledge, skills and ethics globally recognised by employers, investment professionals, and investors.

'CFA charter holders will continue to play a major role in economic development around the world.'

He is buoyant on CFA prospects for this year. The CFA designation is being increasingly recognised in job advertisements in the investment management profession.

'In a recent job ad for the World Bank, a prominent tag line said: 'The CFA certification is a plus',' he says.

Not to be ignored in financially fixated Hong Kong are Certified Financial Planners (CFPs). The Institute of Financial Planners of Hong Kong (IFPHK) licenses local planners, with 88 per cent of CFPs working in the financial sector and 118,000 CFPs worldwide.

'Consumers are now more demanding of professional financial advice from practitioners. In order to give your clients' confidence, getting the CFP certification will definitely give you an advantage,' says Angeline Chin, IFPHK's chief executive, stressing that all CFPs undergo rigorous certification requirements encompassing six modules via four exams on financial planning, insurance, investments, taxation employee benefits and estates, coupled with 15 credits of continuing annual education.

CFPs must acquire broad financial planning knowledge to provide sound financial advice to clients. 'All these set the CFP certificants apart. More financial institutions require their financial planning managers or relationship managers to become CFP certificants,' Chin says.

IFPHK's pass rate is 40 per cent, and the certification is increasingly portable as the mainland allows local CFPs passing a cross-border examination to offer services on the mainland, and vice versa. Chin recommends that those committed to providing competent and ethical financial planning services to consumers should consider the certification. 'We believe that this would include all frontline staff in banks, relationship managers, private bankers and financial advisers,' she says.

But because of the rigorous certification process, she recommends candidates have a prior degree. She is upbeat as more companies have approached the IFPHK about hiring CFPs this year.

As for accountants, the premier local body is the Hong Kong Institute for Certified Public Accountants (HKICPA).

Although it faces some competition from entities such as CPA Australia and the Association of Chartered Certified Accountants, the HKICPA is the only statutory body that can locally award the CPA licence and is internationally recognised.

Aspiring CPAs must take four modular open-book examinations to gauge technical, analytical and conceptual competence. 'The open-book exam style is to simulate the working environment and to emphasise application instead of memorising,' says Jonathan Ng, HKICPA's director of student education and training.

Ng believes professional prospects are very encouraging given the mainland's fast-growing economy and its largely unmet demand for accountants. 'China's accession to the WTO and its attempt to internationalise business operations with Hong Kong is playing a major role in the mainland's convergence process with international [accounting] standards. Such a partnership provides enormous opportunity for Hong Kong accountants and a strong motivation for students, even with non-accounting backgrounds,' he says.

Moreover, with the completion of additional exams, local CPAs can also practise on the mainland.

Recent statistics indicate the Big Four accounting firms recruited more than 1,300 new graduates locally last year. 'The booming ... mainland [economy] is driving the demand for accountancy professionals with business experience and knowledge to work there, especially at middle and senior management levels in banking, taxation and treasury areas,' he says.

Post