Career Prospects after CFA & FRM - A Comparative Analysis

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A comparative analysis of career
prospects after CFA and FRM
-By Sandeep Singh

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Overview
Who does CFA/FRM ? A look into candidate profiles
What is the difference between CFA and FRM?
How should one decide between opting for a CFA or a FRM?
Who hires CFA/ FRM ? Career benefits ?
Career prospects in India & abroad
How to maximize gains from financial certifications ?

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Who does CFA/FRM? And why do they do ?
A look into candidates’ profiles
• Pretty much anyone interested in capital markets or portfolio management
• MBAs
• CAs
• Commerce Graduates
• Engineers
• People having experience in diverse fields including IT

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MBA vs CFA or MBA with CFA ?
• The MBA finance degree in covers about 20% of what gets covered in the entire CFA
curriculum (in terms of financial knowledge).
• A MBA degree is more holistic to management as it will also cover non finance
subjects like HRM, systems, marketing and general management.
• CFA is a certification dedicated to the field of finance. Probably no examination is as
exhaustive and comprehensive in finance as CFA is.

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What is the difference between CFA and FRM?
• A very common question
• Degrees of CFA and FRM have to be looked at compliments rather than as
competing with each other
• CFA teaches you the inside-out of finance, FRM is a designation which is dedicated
to risk management
• CFA and FRM are not standalone designations and are supposed to be
complimented with either a MBA degree or work experience

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How should one decide between opting for a CFA or a FRM?
• Efforts & time required
• CFA broad based vs FRM specific
• Recognition
• Career tracks

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CFA® certification benefits
• Global Recognition
– More than 90,000 CFA charterholders work in over 130 countries.
– Active CFA® member societies are available in more than 50 countries.
– Regulatory bodies in 19 countries recognize the CFA® designation as a proxy for meeting certain
licensing requirements.
– Over 125 colleges and universities incorporate a majority of the CFA® curriculum into their
courses.
• Career Advantage
– Employers recognize the CFA charterholders as the definitive standard by which to measure
the competence, integrity, and dedication of serious investment professionals.
• Practical Skills
– The CFA Program curriculum focuses on the practical knowledge and current real-world skills
necessary in the global investment management profession. These skills are immediately
useful on the job.
• Community
– Earning the CFA charterholder places you in the company of an elite group of more than
90,000 respected investment professionals.

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* CFA Institute website
Jobs prospects after completing CFA Program
• CFA charterholder provides you with a strong foundation for a variety of career
choices in the investment profession
– Interested in portfolio management, investment research, advisory services, or investment
banking, you will be benefited from a CFA certificate

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Top Employers
•Bank of America Merrill Lynch Citigroup
•Credit Suisse Deutsche Bank
•HSBC JP Morgan Chase
•Morgan Stanley Smith Barney RBC
•UBS Wells Fargo
Top Employers
•Citigroup CRISIL Limited
•Deutsche Bank Goldman Sachs
•HSBC ICICI Group
•JP Morgan Chase Morgan Stanley Smith Barney
•Nomura State Bank of India
Who hires CFA charterholder
Photo from www.cfainstitute.org

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FRM Annual Growth
©

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FRM Program Annual Growth
Top Companies
1. ICBC
2. HSBC
3. Bank of China
4. PwC
5. UBS
6. Citi
7. KPMG
8. Agricultural Bank of China
9. Ernst & Young
10. Deutsche Bank
11. Standard Chartered Bank
12. Credit Suisse
13. Deloitte
14. JP Morgan
15. Barclays
16. Samsung
17. ING
18. Bank of Communications
19. Bank of America
20. BBVA
Top Global Banks
1. ICBC
2. China Construction Bank Corporation
3. JPMorgan Chase & Co
4. Bank of China
5. HSBC Holdings
6. Wells Fargo & Co
7. Agricultural Bank of China
8. BNP Paribas
9. Banco Santander
10. Goldman Sachs
11. Citigroup
12. Itaú Unibanco Holding
13. Banco do Brasil
14. Barclays
15. Mitsubishi UFJ Financial Group
16. Banco Bradesco
17. Crédit Agricole
18. Sumitomo Mitsui Financial Group
19. Banco Bilbao Vizcaya Argentaria
20. UBS
21. Westpac Banking Corporation
22. Groupe BPCE
23. Sberbank of Russia
24. Bank of Communications
25. Société Générale
Top Global Asset Management Firms
1. BlackRock
2. SSgA
3. Fidelity Investments
4. Vangaurd Group
5. J.P. Morgan Asset Management
6. PIMCO
7. BNY Mellon Asset
8. Capital Research &
Management Co
9. Amundi
10. Goldman Sachs
11. Prudential Financial
12. Deutsche Asset Management
13. AXA Investment Managers
14. BNP Paribas
15. Legg Mason Inc.
16. Franklin Templeton
Investments
17. Northern Trust
18. Wellington Management
19. Invesco
20. MetLife Inc.
Top Global Insurance Companies
1. AXA Equitable
2. Allianz
3. Metlife Inc.
4. Prudential
5. AIG
6. Generali Group
7. Legal & General Group
8. Aviva
9. Manulife
10. AEGON
11. CNP Assurances
12. Berkshire Hathaway
13. Zurich Insurance
15. Ping An
Top Global Hedge Funds
1. Bridgewater Associates
2. Man Group
4. Brevan Howard Asset Management
5. Och-Ziff Capital Management Group
6. BlueCrest Capital Management
8. J.P. Morgan
9. Credit Suisse
10. BlackRock
Top Global Professional Service Firms
1. PricewaterhouseCoopers
2. Deloitte & Touche
3. Ernst & Young
4. KPMG
©

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Career Prospects in India & Abroad
India (Mumbai/Pune/NCR/Bangalore/Chennai)
CFA specific
• Captives of investment banks
• Private Banks
• Buy-side firms
• Equity/economic research
• Market analytics
• PE-VC firms
FRM Specific
• Auditing firms
• Treasury departments
• Credit Risk Management in banks
• Risk Analytics
Quantitative finance roles (Algo trading /hedge funds etc) ?
Abroad
• Gulf & Singapore is easier to crack
• USA/UK/Hong Kong/Aus is tougher due to visa restrictions and gloomy market scenario

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How to maximize gains from financial certifications ?
In general, maximizing career benefits from certifications
• Exploring communities
• Building on industry knowledge
• Building on macro-economic knowledge
• LinkedIn
• Networking via college seniors/alumni or relatives is a must
• Focused job sites
• Added skills like excel, VBA, macro

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Questions/Queries?

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