[KC]

Hi Ninjas,

This is for anyone who has attempted the CFA after taking the CPA…

My question is this, if I had trouble passing the CPA (failed 3 of 4 tests on my first try), is it a waste of time to even consider taking the CFA?

I’m starting to realize I have absolutely zero interest to get into public accounting and am much more interested in M&A, PE, and VC and based on my resume I feel like passing the CFA is the only thing that could get my foot in the door for jobs like that.

I also understand that the CFA is like 5x as hard as the CPA and could take like 10 years to pass, so please refrain from explaining how difficult the test is, I get it, its HARD, but is it impossible for someone who had trouble with the CPA?

Thanks to anyone who helps!

AUD - awaiting score
REG - 64
BEC - 81
FAR - 67

[Substantive Testing]

CFA is overall harder than CPA, but for some people (finance oriented) it is easier to study for CFA. For example, while studying 5 hours a day for CPA could be the worst of the nightmares, 10 hours studying for CFA could be a total breeze; therefore, it is highly dependent on your interests and future goals. It could take many years to pass level 3, but I think that level 1 and 2 are enough to get your feet into the doors of an analyst job either for equity and VC. As for M&A, that is a completely different beast, and they look at top 10 business schools MBAs aside from CFA.

[NebCPA]

I have passed both. Took the CPA because I’m an accountant; took the CFA for ego; probably a waste of time, but I didn’t have to pay for it. A couple items to address your questions and add some thoughts:

First I’ll start off with the cliché: you don’t need a certification to get into a different area of work. The CFA is a great designation, but realistically, you’ll start as a financial analyst and have to work your way up. You don’t need your CFA to do that.

Second, depending on your market and what degrees you have, getting an MBA from a Top 10 University may serve you better.

Finally, to actually answer your question, I have no idea if you can pass the exam or if you should try. Just like any exam, it takes time and effort. You have a decent BEC score. The first part of the exam is intro to statistics, econ, finance, and fixed income/equity securities, which is what BEC covers. The first part is weighted heavily toward Intermediate accounting I knowledge and minimal knowledge on alternative investments and derivatives. You should have a decent foundation for Part 1.

Part 2 is another beast all together. This is classified as the most difficult part, and requires you to have a very good working knowledge of statistics and how to value securities and derivatives. Accounting knowledge requires a good understanding of intermediate accounting II. If you plan on taking the exam, and you have an accounting degree, this will be almost all new knowledge that you will need to learn.

First two parts are multiple choice with only three answer choices, so worse case, you get 33.3% on the exam (unless you’re really unlucky). Third part has case studies and weighs heavily towards portfolio management, which, again, will probably require you to learn from the basics.

Recommendation: get a job in the finance industry before jumping into the exam. Passing the exams, like the CPA, doesn’t give you the right to use the designation and passing by itself does not guarantee you a job. The process is 3-years (ok, 1.5 if you manage a Dec, Jun, Jun schedule), so it would be best to look at moving careers prior to waiting until you pass. I assume you are not sitting the upcoming June exam, so at earliest, you can sit Part 1 in December and that would put a lot of pressure on you to start Part 2 before June, especially considering you won’t even know if you passed Part 1 until 6 weeks after you test. Plus, if you get into a finance position with a larger company, they’ll pay for the exam, which is really expensive.

Best of Luck

[KC]

@NebCPA wow thanks for the extensive response. Do you think it would be valuable to maybe pass part 1 of the CFA before trying to break into the finance industry? Or do they not really care about the CFA unless you pass all 3 parts?

Also thanks for referring me to nalystforum I was actually looking to find a forum to ask these types of questions on so that is super helpful.

Thank you!

AUD - awaiting score
REG - 64
BEC - 81
FAR - 67

[NebCPA]

Professionally speaking, certifications are only one leg of a four-legged stool which includes education, work experience, certifications, and personality. Passing Part 1 of the certification may increase your chances of landing a job, no question, but that’s only if you’re strong in the other areas and beating/matching other applicants in those areas.

The soonest you can sit the CFA exam would be December at this point, and you wouldn’t find out your score until January of next year. If you want to move into the finance industry, and you don’t like your current job, start looking to get into the industry now. There’s no reason to wait almost a year.

The CFA is a bit different from the CPA exam when it comes to study material. The cost of textbooks/mock exams are included in your registration cost, so you don’t, technically, need to get any additional resources other than what the CFA Institute provides, though, there are third-party resources available. You have already missed the early deadline to register for the December exam. Next date to remember is August 16, 2017, when registration costs are bumped up again. Though if you want access to the study materials now, you’ll need to register to have access to them.

Advise: if you work in public accounting, and your firm has PE/alternative investment clients, you can look to get on those engagements to get a better knowledge of regulations and make contacts. My impression is that you want to work more in the valuation field, though, so doing audits (if that’s what you are currently doing), won’t allow you to focus on much valuation. Bigger public accounting firms will have valuation divisions you may try to get into which may be more to your liking and may be easier to get into given your background. Other than that, realize that if you have a degree in accounting and a CPA, you are just as or more qualified for an intro analyst position or investment accounting position as any guy walking out of college with a BS in finance, so as long as you are looking to get into an intro job and not a senior/manager level position and you have a good personality, I’d just start applying to jobs.

Best of luck.

[Anonymous]

I have not taken the CFA, but it is supposed to be a different Animal compared with the CPA. I hear that the difficulty of the material is similar to the CPA, but the CFA covers a lot more ground. It is strange that there is a total testing time of 18 hours for the CFA and 16 hours for the CPA if you pass each exam on the first try. This would imply that the amount of material covered would be similar, but that is far from true.

I have also thought about taking the CFA, but the CPA has worn me out plenty. I just can't imaging taking exams for 3+ years. That's insane!

[aaronmo]

I haven't taken the CFA, but I frankly don't buy how difficult it is.

It's being taken by finance people. Finance people were, by and large, the ones who couldn't hack intermediate and then shifted gears. I work with finance people and CFAs…most of them are not that bright. You can also take the CFA with just a bachelors.

I suspect the pass rate is more a reflection of the lesser exam taking population, and possibly more time between class and the exams.

That said, I haven't taken it and could be very wrong. I didn't know accountants who did poorly in finance classes though…I sure knew a lot of finance kids who struggled in accounting. It's a less bright, more BS oriented person in my experience.

[cpa1982]

CFA is more leaning towards Asset Management. For investment banking, PE, VC, they looking for MBA from top business school.

[Anonymous]

^ The CFA is based more on Graduate level Finance classes. You are comparing finance undergraduates who you went to school with. I agree that there were many boneheaded finance students at my State School who could not hack Intermediate accounting classes. But, students who go to Top B Schools and earn their MBA-Fiancé are pretty damn smart.

The CPA Exam is very, very difficult – no doubt. But, I'm 90% sure the CFA is more difficult than the CPA just based on the volume of information.

Goodluck and let's knock these CPA exams out!

[aaronmo]

I definitely have some strong biases and am making generalizations. That said…I'd have to see the material to buy that. Business majors are generally not the best and brightest, at any level of school.

Anyway, to the OP…I'd take a stab if you have the free time. You definitely can't pass it if you don't take a shot.

[fuzyfro89]

I went the CFA route, and stopped after passing L1, so I'll offer my perspective. Brief bio, I worked in big 4 audit for 1.5 yrs, jumped into corporate audit for 2 yrs, and was promoted into an operating finance role (sr financial analyst) where I have been for about 2 yrs… so 5-6 years into my career.

1) “My question is this, if I had trouble passing the CPA (failed 3 of 4 tests on my first try), is it a waste of time to even consider taking the CFA?”
– I would not say it's a waste. From a pure difficulty perspective, it's not very challenging material, but the volume of material per exam is larger. Think of Level 1 (assuming it hasn't changed a ton since Jun 2013) as BEC and FAR combined in one exam… in terms of amount of material. You will have to answer why you struggled. If you are a poor student or don't have good study habits, then you will likewise struggle on CFA. If you for some reason love CFA material (it is somewhat more interesting if you enjoy finance and math), then you may find it more interesting and not struggle to get through the material as much… which could help. Where you stand, I don't know.

2) “I'm starting to realize I have absolutely zero interest to get into public accounting and am much more interested in M&A, PE, and VC and based on my resume I feel like passing the CFA is the only thing that could get my foot in the door for jobs like that.”
– CFA may help to show you have base intelligence and competency, assuming you went to a state school as opposed to a premier state/private school (Michigan, UT Austin, UC Berkeley, UCLA, and of course Ivy league). Otherwise, the M&A/PE/VC/Banking worlds care a lot more about prestige than credentials like exams. You will have to pass the exams, network your tail off, and show interest/aptitude in your networking and application processes. Another option would be to target mid-market firms which do similar work, and not just the major banks/PE funds.

[Anonymous]

@fuzyfro89

Just curious, what made you stop after L1? I hear L2 is supposed to be more difficult material, but the same volume as L1. I've thought about the CFA after I complete the CPA, but I couldn't imaging spending on average 4 years to complete it. The CPA has been enough of a nightmare for me!!

 
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