Cityam%202013-05-16

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BUSINESSEDUCATION CFA SPECIAL
The new investment
qualification ending
the industry divide
Consistency of knowledge can provide balance to a business
THERE’S a new name in the
financial education market that
looks to use the expertise and
credibility of the CFA Institute
to provide foundation level
knowledge for staff supporting the
investment industry.
The Claritas investment certificate is
the latest qualification to be released
by the CFA Institute, and has just completed
its trial run, with pilot participants
including BlackRock, Aviva
Investors and the BBC. It’s a self-study
education programme, aiming to
teach the basics of finance, ethics, and
investing to staff in support roles like
human resources, public relations,
operations, IT, compliance, and legal.
As with its Chartered Financial
Analyst (CFA) programme, the
Institute has used its network in the
global investment industry to create a
body of knowledge that hopes to be
both relevant and practical. But
Claritas differs fundamentally from
the CFA programme. It is aimed primarily
at those unlikely to ever
require the depth of knowledge a
front line investor would need. It is far
shorter, with the Institute estimating
it will take candidates 100 hours of
study over six months to complete.
And unlike the CFA, there is no education
or experience requirement.
But what’s the benefit for businesses
in educating their support staff? John
Bowman, managing director and colead
of education at the Institute, says
that a lack of understanding between
different areas of a business can create
a cultural barrier, and increases
the risk of miscommunication errors
between the front, middle and back
offices.
You may question the use of the programme
in a business dealing with
complicated investments – how could
someone with a bare bones grasp of
equity securities understand and communicate
the finer points of an eventdriven
strategy, for example? But
anecdotal feedback from those who
have trialled the programme revealed
an immediate increase in confidence
and comprehension among particpants,
which has helped investment
firms become more productive.
A BUSINESS PERSPECTIVE
Roger Brosch, chief executive of financial
advisory company Foster Denovo,
says that a base level of financial
knowledge across all staff is “very
important to the health and wealth of
a business”, giving front line investors
the confidence to delegate more, and
“empowering staff at all levels to
focus on doing the right thing”.
With more minds understanding
and tackling the problems affecting
the money-making areas, the more
likely it is that solutions are found
THURSDAY 16 MAY 2013
The CFA’s latest offering aims to remove the educational barriers
between the front office and supporting staff, says Chris Harlow
and implemented effectively.
Teaching support staff how their role
helps the business remain profitable,
and how they fit into the industry
may also have the softer appeal of providing
job satisfaction and creating
motivation.
The Claritas programme is reasonably
priced, coming up at $685 (£445)
for individual students, falling to $485
when bought in bulk for 250 or more.
But in most cases, it would probably
be cheaper to provide training inhouse.
So what’s the appeal?
Bowman says that, apart from the
expertise provided by the CFA
Institute, Claritas differentiates itself
from the competition because of its
global applicability and credibility.
“Other courses of a similar nature are
geared towards local needs, standards
and regulations,” he says. “But courses
run by the CFA Institute are designed
to teach a common language that can
be understood regardless of where
you are in the world.”
But curing financial illiteracy
among support staff – particularly
those in client facing roles – could
have unintended consequences if not
properly managed. A study by Invesco
found that industry jargon often creates
a disconnect between investment
firms and their clients. Client-facing
staff should use their new knowledge
as a filter rather than a barrier.
WHICH STAFF PILOTED CLARITAS?
44
6
Operations
IT
Accountant / Auditor
Sales / Relationships
WHAT IS CLARITAS?
n Claritas is the latest offering from the CFA Institute, teaching a
foundation-level knowledge to staff in investment support roles.
NUMBER OF FIRMS THAT PILOTED THE COURSE
COSTS AND REQUIREMENTS
n Individual registration costs $685 (£445). This includes the exam
registration fee, access to all study materials, and one exam sitting.
cityam.com
n Topics covered include financial statements, investment instruments
like equity and debt securities, risk management and asset allocation.
n The CFA Institute estimates that the programme requires
approximately 100 hours of study over a course of six months.
n Candidates will be tested using a computer-based exam, consisting
of 120 multiple choice questions administered in English.
United States
31
Uruguay
4
Malaysia
2
%
6
United Kingdom
9
Australia
3
China
2
17
n When bought in bulk, 25 to 99 vouchers cost $635 each, 100 to 249
cost $585, and 250 or more cost $485.
n Unlike the Chartered Financial Analyst (CFA) programme, there are no
educational or work experience requirements.
7
9
Admin
Marketing
Other
11
India
8
UAE
2
Other
2