The CFA (Chartered Financial Analyst) is THE certification that makes all the difference in the world of finance. Céline, a final year student at NEOMA, obtained Level I of the CFA and is currently preparing to take Level 2. She reveals her advice and gives us an overview of her preparation for this certification.
Can you go back over your journey?
I went through a prep class and joined NEOMA in 2018. I had the chance to discover both NEOMA campuses. I did my first year in Rouen, then I went to Reims for my M1 in the CFA course. I also chose NEOMA for this course. Despite COVID, I managed to pass the first level one. Today, I am finishing my second year of my master’s degree while preparing for Level II.
Everything you need to know about the CFA
For those who don’t know, what is the CFA?
The CFA is a certification in finance, with an international scope, which takes place in three levels with an average of three years to complete these three levels. It is accessible to all ages and is geared towards asset management. However, from CFA level I, we cover all subjects related to finance.
Why did you choose to prepare for the CFA Level I?
I immediately chose NEOMA for the CFA course, because I wanted to work in finance. I was aware, right out of prep school, that positions in finance were few and far between and that you had to enhance your CV. A PGE diploma is not necessarily enough to enter this world. So, I opted for NEOMA, because I told myself that there was a certain quality of CFA teaching at NEOMA.
Level I is very challenging. Today, there is only a 25% success rate. But the CFA still greatly enhanced my CV during interviews. I have rarely had an interview where someone did not challenge me on the CFA.
Why continue with level II?
It is above all a challenge. Like prep, we tell ourselves that we have to go all the way. Today, passing only level I does not make you become a CFA. You must have all three levels. I also want to take advantage of being a student to take Level II. Indeed, even the CFA Institute claims, it’s quite hard to pass the CFA levels when you’re already working.
Tips for preparing for the CFA
How do you prepare for the CFA?
It depends on each person’s personality. Generally speaking, as a student or someone without any background in finance, nor on asset management, and who does not necessarily know financial products, it takes an average of 300 to 500 hours of work (counting personal time and support hours of NEOMA).
For my part, I liked to take up everything we call the readingsthat is to say the CFA courses, in advance. You need to actively read the courses for the first time to get an idea of the subject. The CFA covers topics that a student has rarely seen before. On the other hand, I didn’t take notes. I highlighted key points I saw in my books. After two or even three quick readings of the course, I went straight to the questions. You have to be careful, because the CFA is an exam where the questions are formulated in a particular way. To pass your Level I, you must be used to this question format.
How are the questions special?
Because they are modeled in the form of multiple choice questions. The questions are technical and relate to the course or are more focused in a computational sense. The problem with the CFA is that all three answers are possible. This is where it is tricky for the students. You are never really sure of your answers during the exam. Just get the comma wrong to distort the entire result.
How did NEOMA help you prepare for the CFA?
At NEOMA, the big advantage is that the majority of teachers already have CFA and also a Ph.D. They have had this preparation, they have mastered it. They worked in asset managementthey know their subject very well. Their added value will be to review the key points of the course, to explain them to those who have understood less well. They also know in advance where, in general, questions fall within the CFA. Above all, they help us to prepare ourselves as best as possible for these questions.
Your advice for passing Level I?
Be thorough during your revisions, do not miss any details. The CFA questions will focus on the details and not the generality of the course. Get used to the format of the CFA questions which are unique.
The impact of the CFA on Céline’s professional career
How has the CFA impacted your professional career?
In the post-COVID period – and even during the COVID period during which I had my gap year – there was a huge demand on the intern market, compared to a supply that remained similar, or even less, to cause of the pandemic. The CFA boosted my CV.
Preparing for the CFA when you are only 21 years old arouses the curiosity of recruiters. I had not yet passed level I, but I had indicated that I was a candidate for CFA Level I. Telling recruiters that you are a candidate shows motivation on the part of the student and an interest in finance. As a recruiter, you never know if the student really wants to go into finance.
During all my interviews, recruiters asked me questions about the CFA. In finance, the CFA is starting to gain momentum today. Companies will therefore challenge students on this when they declare themselves candidates for the CFA.
How do you imagine what’s next for you?
I already have the goal of passing the three levels of the CFA. The CFA is known to be a certification geared towards asset managementbut it opens a lot of doors when you are a student. I was thus able to join positions 100% focused on corporate finance. I was in credit analysis at Société Générale and in coverage at BNP.
For my end-of-studies internship, I was able to join an American investment bank. It’s incredible, knowing that NEOMA is not at all in the targets American banks. My CFA really enhanced my candidacy when I applied for their summer and their internship.
So, without knowing much, I joined corporate finance. I really enjoyed it, it allowed me to use my CFA certification on a daily basis. So I imagine, why not, staying in the world of investment banking later.
