Future of ICFAI and CFA
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ICFAI, having been embroiled in a long legal battle with the CFA Institute,focused its energy on developing private universities, some of which have AICTE recognition along with UGC recognition. ICFAI has focused all its energies away from developing its CFA charter like giving it statutory recognition increasing its status as a high status profession like that of CA from ICAI, which was announced by the governing member NJ Yeshasway who vowed to take up the CFA Charter a notch above the legendary CA exam considered to be the toughest in the realm of finance, but instead has opened a host of non-CFA programs like MBA, ICFAI Business Schools (IBS), PG Programs which have scaled up into national top 10 place in India. It has also opened schools for under graduate programs and offering degrees. Indian CFAs pass with a stringent eligibility to qualify as CFAs but have only a niche finance sector as the job market unlike CA which has traditional roles of Auditing and taxation along with statutory roles. CFAs work in investment related and finance fields where MBAs (some from ICFAI itself), CAs, Masters Degree holders of Statistics, Economics, Doctorates etc. hold top posts.
ICFAI though has safeguarded its CFA charter in India with valid state legislature under IUT Tripura Act, but CFA charterholders are not mandatorily employable and currently don't perform any statutory duty unlike CAs, CSs, CWAs, though CCFA tried to accomplish this in investment related areas in India by submitting a draft bill to the ministry of finance for consideration which was rejected due to various legal disputes that ICFAI faces. Also here is a fact to note that ICFAI University tripura has never been permitted to conduct any distance learning/correspondence course by UGC. CFAs are employed only because of their course contents and rigor of the CFA program, which is the only reason they have got market acceptance with very few qualifying as CFAs every year. ICFAI has very few CFA charter holders, compared to other professionals and hence they don't have a large and established presence in the Indian job market. Indian companies have tied up with other Indian bodies like AMFI or NSE in offering investment designations and courses.
Frequent changes to eligibility requirements changes in fee structure, exorbitant council membership charges etc., have caused confusion among the student community. Many founding members have left ICFAI as they were not happy with the way ICFAI treated its flagship course. The course, which was once a stepping stone for Indians into analytic finance has become just one more obscure degree due to continuous changes in the curriculum. As a result, there is negativity about this course in the Indian corporate world. Keeping in view the demands from the corporate world and impending competition, ICFAI is thinking of bringing whole sale changes in the curriculum and the training method from the current academic year. The new course can only be completed in 24 months and will include a training program for the passing students of final exam. ICFAI is also creating a window for students of CFA program to undergo 2 months internship with its in-house concerns to impart rigorous analytical skills. Exemption for MBAs will be stopped from the current academic year. Also, ICFAI is drafting a continuing professional development module which will be compulsory for all the current CFAs. This program will enable the current CFAs to enhance their knowledge in their respective areas and will include relevant statutes changes, paradigm shift in capital markets and allied subject matter. ICFAI hopes to regain the old status of its CFA program through continuously evolving methods, the most recent is focussing on the core aspects of investment management and financial analysis in its MFA/MIFA degree(current CFA syllabus) and increasing CFA charter membership by giving official charters to students who have cleared the core subjects of investment management and financial analysis of the previous(CFA curriculum) MS Finance program.
Indian CFA Code of Conduct
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CFAC (Indian Council of Chartered Financial Analysts) is a registered society with the Indian government seeking to regulate the profession of financial analysts in India but, unlike ICAI or ICSI or ICWAI, is not a statutory body. The CFA charter is only a certification from ICFAI apprising the public at large of the CFAs competence for Financial and Investment analysis.
The Code of Conduct covers:
1. Integrity: A CFA shall conduct him/herself with integrity and dignity in his dealings with the public, clients, customers, employers, employees, professionals and fellow analysts.
2. Ethical Behavior: A CFA shall conduct himself and shall encourage others to practice the financial analysis profession in a professional and ethical manner that will reflect credit on himself and his profession and his organization/employer where or for whom he is working.
3. Professional Competence: A CFA shall act with competence and shall strive to maintain and improve his competence and that of others in the profession.
4. Objectivity: A CFA shall be fair in his dealings and must not be biased or prejudiced. He shall try to maintain objectivity and impartiality towards one and all.
5. Professional Independence: A CFA shall use proper care and exercise independent professional judgement in all his professional activities.
6. Public Trust: A CFA shall assume the basic responsibility to place the interest of clients, prospective clients and employers ahead of his own. He shall seek to enhance public confidence in his profession.
The CFA Council has put in place a suitable mechanism to enforce the Code of Ethics and Standards of Professional Conduct.
