Professional finance requirements

The CFA Charter is a distinction granted to those who undertake and pass a rigorous, graduate-level curriculum. The programme links theory and practice with real-world investment analysis and portfolio management skills and emphasises the highest ethical and professional standards.

Candidates must not only pass three exams, but also meet the work experience requirements of four years in the investment industry. In addition, they must pledge to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct, apply to a CFA Institute society and become a member of the CFA Institute.

Those who meet the requirements benefit from the extensive knowledge attained in pursuit of the Charter. They also gain the advantages of membership in an active, global community of recognised investment professionals.

For more information:

• Visit the CFA Institute website - Find out more about this global, non-profit organisation of investment professionals from over 100 countries worldwide.
• Visit the CFA Society of New Zealand website - Additional information on the New Zealand CFA Chapter.

Since 2011 the University of Auckland has been a CFA partner with the CFA Institute. The CFA Institute has approved the University of Auckland’s undergraduate programmes as a useful foundation towards the CFA Charter.

Note that CFA exams are of a higher level of difficulty than typical undergraduate exams. They fail around 60% of (self-selected high quality) candidates in the Level I exam, and more at Level II and Level III.

Apart from offering a one-day free class in the CFA Institute Code of Ethics and Standards of Professional Conduct and providing a limited number of scholarships to University of Auckland students for the Level I exam, the University of Auckland is not directly involved with CFA exams and procedures.

As part of the CFA partnership, the University of Auckland conducts a free one-day course on the CFA Institute Code of Ethics and Standards of Professional Conduct, tentatively scheduled each year in the first week of the mid-semester break in Semester Two. When the specific date, time, and place are finalised, it will be announced to all Stage III Accounting and Finance course attendants.

To register as a CFA candidate and for the Level I exam, or to find detailed information on the CFA Charter, visit the CFA Institute website.

A scholarship will significantly reduce your exam registration expenses (however, you will still need to pay for CFA books and materials). Please check the scholarship application deadline on the CFA Institute website.

All scholarship applications need to be made online via the CFA Institute website. Please do not register for the CFA program prior to submitting your application for a scholarship.

If you have any questions regarding the application process, please contact cfa.partnership@auckland.ac.nz.

A BCom with a major in Finance at the University of Auckland is:

• Business core: All of Business 111, Business 112, Business 114, Business 115; Information Systems 110; Stats 108
  
• Finance core: All of Accounting 102; Maths 108, 208; Finance 251, 261
  
• At least 3 of 8 from Accounting 371; Finance 310, 351, 361, 362, 383, 384; ComLaw 351 or Econ 352

The below information outlines relevant University of Auckland courses for the Level I CFA Institute Exam according to the 2011 curriculum:

Undergraduate curriculum guide for CFA Level I Exam

I. Ethical and Professional Standards

• A. Professional Standards of Practice
• B. Ethical Practices

Courses covering curriculum domain

Day course to be taught by Vice President of CFA Society NZ and Auckland CFA Charter holders, held at Massey University Albany campus once per year.

II. Quantitative Methods

• A. Time Value of Money
• B. Probability
• C. Probability Distributions and Descriptive Statistics
• D. Sampling and Estimation
• E. Hypothesis Testing
• F. Correlation Analysis and Regression
• G. Technical Analysis

III. Economics

• A. Market Forces of Supply and Demand
• B. The Firm and Industry Organisation
• C. Measuring National Income and Growth
• D. Business Cycles
• E. The Monetary System
• F. Inflation
• G. International Trade and Capital Flows
• H. Currency Exchange Rates
• I. Monetary and Fiscal Policy

IV. Financial Reporting and Analysis

• A. Financial Reporting System (IFRS and GAAP)
• B. Principal Financial Statements
• C. Financial Reporting Quality
• D. Analysis of Inventories
• E. Analysis of Long-Lived Assets
• F. Analysis of Taxes
• G. Analysis of Debt
• H. Analysis of Off-Balance-Sheet Assets and Liabilities

V. Corporate Finance

• A. Corporate Governance
• B. Dividend Policy
• C. Capital Investment Decisions
• D. Business and Financial Risk
• E. Long-term Financial Policy
• F. Short-term Financial Policy
• G. Mergers and Acquisitions and Corporate Restructuring

VI. Equity Investments

• A. Types of Equity Securities and their Characteristics
• B. Equity Markets: Characteristics, Institutions, and Benchmarks
• C. Fundamental Analysis (Sector, Industry, Company) and the Valuation of Individual Equity Securities
• D. Equity Market Valuation and Return Analysis
• E. Special Applications of Fundamental Analysis (Residual Earnings)
• F. Equity of Hybrid Investment Vehicles

VII. Fixed Income

• A. Types of Fixed Income Securities and their Characteristics
• B. Fixed Income Markets: Characteristics, Institutions, and Benchmarks
• C. Fixed Income Valuation (Sector, Industry, Company) and Return Analysis
• D. Term Structure Determination and Yield Spreads
• E. Analysis of Interest Rate Risk
• F. Analysis of Credit Risk

VIII. Derivatives

• A. Types of Derivative Instruments and their Characteristics
• B. Forward Markets and Instruments
• C. Futures Markets and Instruments
• D. Options Markets and Instruments
• E. Swaps Markets and Instruments
• F. Credit Derivatives Markets and Instruments

IX. Alternative Investments

• A. Types of Alternative Investments and their Characteristics
• B. Real Estate
• C. Private Equity/Venture Capital
• D. Hedge Funds
• E. Closely-held Companies and Inactively Traded Securities
• F. Distressed Securities/Bankruptcies
• G. Commodities
• H. Tangible Assets with Low Liquidity

X. Portfolio Management and Wealth Planning

• A. Portfolio Concepts
• B. Management of Individual/Family Investor Portfolios
• C. Presentation of Performance Results (GIPS®)

Chartered Financial Analyst®, CFA®, CFA Institute and GIPS® are trademarks owned by the CFA Institute.