[cantpassagain1]

Was wondering what people’s thoughts were on pursuing a CFA 7-8 months after becoming a CPA?

[thunderlips]

I think an MBA holds more value in the corporate world. Maybe CFA or CFP hold up better in public practice

[Anthony]

Sure if the MBA is like from M7 or so, but MBA from a no name school or some diploma mill ain't worth jack if there no good connections to get from it.

@OP think long a hard before you commit to becoming a chartered holder. It's a long and hard road and the fastest amount of time to pass all 3 levels is 18 months and that is assuming you get through it in 1 go.

Ask yourself this. Why do you want be a chartered holder? Are you willing to commit 6-8 months of grueling self studying just to attempt each level? Remember it's all or nothing here, you don't get anything if you give up in the process or between levels.

This is coming from a level 3 candidate btw.

[vbmer]

If you work in a relevant industry (i.e. not accounting), or are currently making moves towards that direction, I would go for it.

The CFA is hard, but if done correctly, it is not as time-consuming as it's reputed to be. It's pass/fail, and Level 1 and 2 are pure MCQ with only 3 answers, with not that much calculation required, so you don't need to actually know even close to all of the material to pass. I spent less than 100 hours combined on Level 1 and 2 and passed first try, and many others have done the same. Level 3, despite its reputation as being easier than Level 2, requires a bit more time, as the structured response section requires a new approach. Studying itself isn't a very productive exercise unless you know where you stand and where you need to get to.

[cantpassagain1]

Ya I am just trying to get an idea if it really is something I want to pursue. With you guys being CPAs and in pursuit/are chartered – are you trying to pivot out of accounting or is it a value add in what you are doing within accounting?

Trying to determine where a CPA & CFA would be most valuable in either finance or accounting.

[vbmer]

I have never worked in accounting, although modeling, which takes up a lot of my time, is effectively high-level financial accounting, as much as finance people hate to admit it. I got a CPA because I often deal with CFOs/company execs who are CPAs, and without a CPA, it's hard to have a level back-and-forth on accounting-related issues. For similar reasons, the CPA is pretty good in fundamental equity research in the finance world, among other jobs. For many other roles, the CFA effectively supersedes the CPA, and it's sometimes best to not even mention that you're a CPA so people don't think you're an accountant.

[Helen]

Good question. Is the CFA relevant to corporate finance? Or is it more for investment banking?

[Anthony]

Corporate finance? Sure.

Investment banking? Not so much. It won't hurt you but, the only thing that relevant is a top MBA such as M7 so you can get the connections into it.

CFA itself is heavily relevant for asset or portfolio management or equity research.

[vbmer]

Corporate finance and investment banking are largely synonymous terms from a CFA (or even accounting firm) perspective, btw. And yeah, I agree it's not particularly relevant. The CFA is a body of knowledge for the PM/AM industry.

[cantpassagain1]

@Vbmer that is good to know. I noticed in your signature you're B4 Deals Manager – I'm in B4 right now (L2 associate, assurance) and the business combinations I see regularly in audits is what has got me thinking about the CFA.

How do you think your firm would react to a first year/second year senior in audit try to pivot to M&A if they have their CFA? Thinking longer term, do you think the exit opportunities are better for someone with that experience/credentials + 2-3 years in M&A?

[thunderlips]

I disagree with Anthony. An MBA can complement a CPA very well as long as the MBA is not from a for profit online university like Phoenix. A top school MBA program is only needed if you want to be a CEO by then a CPA is not needed. Not to mention the cost of a top program, might as well go to medical school. An MBA and CPA will stand out more on an application than CPA with a bachelors. CFA more for those who want to go into finance

[vbmer]

@Cantpasssagain1, from what I've seen, it is very rare to get into the core M&A practice from audit, although this can differ in smaller offices where there are more Swiss Army knife-type people. In Europe, a transfer to M&A would be more realistic, but that's a lot of hoops to jump through. Ex-auditors do make up the bulk of FDD and Valuations, so those are a more realistic, but still very difficult transfer due to the high competition. FDD -> MM CF or Val -> ER are both realistic exits if either interest you. I don't think the CFA would make a difference in any case except for a Val transfer.

Also, re:MBA and other stuff, I agree with @Anthony a lot more than I agree with @Thunderlips. M7 isn't necessary though, I've seen plenty of people get into IBD at good banks like Barclays, Lazard, BAML, Wells, RBC from the likes of UNC, Indiana, USC, Texas, Georgetown, although it is harder.

[Helen]

For a CFO position, is CFA relevant or not really?

[thunderlips]

For CFO a CFA is not relevant either an executive MBA or experience with working up the corporate ladder

[Author]

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