By Erica Krawczyk
How to obtain the CFA
In order to obtain the CFA designation, one must have a bachelor’s degree or be in their final year of a bachelor’s degree program. Or, one can have four years of qualified work experience, not including summer work, part-time work or internships. Also, the potential candidate must also be prepared to sign contracts of Professional Conduct and Candidate Responsibility. When registering for the exams, there is a one-time program enrolment fee and an exam registration fee. The CFA Program is described as a graduate level self study program involving a broad curriculum. It consists of three exams. The Level I exam takes place in June and December. Moreover, the Level II and III are held in June only. Further, the Candidate Body of Knowledge (CBOK) consists of current investment professionals, who determine the knowledge, skills and abilities needed to be a successful CFA in the workplace.
Introduction to Chris
I figured it would be informative for a student interested in pursuing a career in finance, to get details from a former student who is currently in the process of becoming a Chartered Financial Analyst. Hence, I have provided a useful Q & A through my friend and former colleague from the management program at UTSC, Chris Christofides. He graduated in 2008 with the Bachelor of Business Administration degree with a stream in finance. Additionally, he is currently working on accomplishing his CFA. In December 2008 and June 2009, he successfully completed his Level I and Level II exams. He is currently working towards his Level III exam. The following are the questions I asked him. I believe his responses are interesting and useful for students interested in finance but are not completely confident of whether to stream in this discipline or not.
Interview with Chris Christofides – CFA Candidate and University of Toronto Alumni
What is your current job title? 
I currently hold the title of Pension Consulting Analyst at Aon Consulting.
In this position, I monitor the investments of pension plans of all sizes, for corporations such as Wal-Mart and American Airlines. My responsibility is to ensure that their money manager(s) adhere to their SIP&P (Statement of Investment Policies & Procedures), and to achieve their performance objectives. If a money manager experiences a significant decline in performance, or they undergo drastic personnel changes, we may recommend replacing that manager. This usually leads to a manager search, where we attempt to match a client with a money manager that meets their investment criteria. Typically, we start with a large universe of managers, and use both quantitative and qualitative screens to determine a shortlist of appropriate managers. Moreover, these shortlisted managers are usually asked to prepare a presentation for representatives of Aon Consulting and the client. After hearing from all the shortlisted managers, the client and consultants make a decision.
There are many other things an Analyst at Aon Consulting would be responsible for, such as completing provider reviews/searches, platform reviews/searches, filing form 8s with the FSCO (Financial Services Commission of Ontario) etc.
How did you get the job?
I started at Aon in co-op. Within 8-months I was giving small tips to senior analysts. Fortunately, my superiors took notice and felt I deserved a more permanent contract. I really commend co-op programs; they are really helpful when trying to get a career off the ground after graduation. Even if I hadn’t been offered a job at Aon, my resume would be that much more powerful with all my co-op experience; and that can mean the difference between landing the job or not.
Describe the moment you knew you wanted to invest your career in the finance industry.
I was always good with numbers, and knew from a relatively young age that I wanted to work in a field where I could apply those skills. Originally, I was more interested in accounting than finance. My first work term was at a tax recovery firm called Stratos Solutions. I learned a lot in this position. However, the greatest lesson I learned was that accounting was not for me. I’ve always felt as if accounting focuses too much on past events, and finance is, in my opinion, more “forward-looking” and driven to anticipate trends in the economy.
After having worked at Stratos Solutions, I figured I would give finance a shot. Personally, finance seemed so much more interesting in comparison to accounting. From there, I rearranged my courses to be more finance related, and found that they captured my interest more than accounting ever could. That’s when I decided for certain finance was the field for me, and my next work terms helped to confirm it.
What were your coop positions, and where did you work?
As mentioned above, I did my first work-term at Stratos Solutions a tax recovery firm.
My next work term was at the OFA (Ontario Financing Authority) Corporate Finance Branch. There, I was responsible for updating the yield curve each morning. I also had ad hoc work, where I analysed investments and their potential to produce a large enough of a return, to repay the debt firms were requesting to take on. The results of my analysis helped determine whether the OFA would permit the corporation(s) to issue the debt or not.
Additionally, the actual work environment was something I hadn’t been exposed to before. Working for the government is very different than working for a typical company. If I tried staying past 5pm to catch up on some work, I would be criticized for it and encouraged to leave the office. Moreover, the environment was very laid back. Nevertheless, the corporate culture at OFA was helpful, as I was taking an online class at UofT, and self-studying the Canadian Securities Course (CSC). Needless to say, it was a busy and stressful semester, but after all was said and done, I was one step closer to completing my goals.
My last work term was at Aon Consulting, where I continue to work today. I only needed a 4-month work term to graduate, but when Aon offered me an 8-month contract I jumped at the opportunity. The learning curve was pretty steep, but I managed to pick up a few things while studying for the second and final CSC examination. At this point, I had enhanced some of Aon’s standard software used in the investment monitoring process, and Aon offered me another 4-month contract outside of the university. During these 4-months, I spent one night a week at UofT, in order to graduate and truly enter the work force. Once I graduated, Aon offered me a full time position, despite the suffering economy and my team’s increasing layoffs. Lastly, two weeks after graduation, I registered with the CFA Institute to write the level 1 CFA exam within 5 months.
Getting the CFA designation – describe to me your journey thus far
The CFA program is really demanding, especially if you’re currently working full time. It consists of 3 exams, each one offered once a year in June (with the exception of the first test, which is also offered in December). Each exam is six hours long, with a two hour break in the middle. The first two exams are multiple choice, and the third is short answer and case study questions. It is recommended you spend a minimum of 300 hours studying for each exam; which translates into 12.5 hours a week for 6 months. There are CFA prep courses available. Although, they can be costly and time consuming. Thus, most people generally opt towards the self-study alternative. It takes tremendous will power to begin studying rigorously for something half a year in advance, but it’s better than cramming during the last week.
In order to keep up with my studies, not fall behind on my work and maintain a social life, I had to make use of every free moment I could find. In fact, I got a lot of my studying done throughout my lunch break and during my 3 hour commute to and from work. To be honest, there’s nothing I hate more than hopping on a bus at 7:30am and opening up a CFA book. But because I made good use of my time, I could afford to reward myself with a break and relax after getting home from work (excluding the final weeks before the exam of course). Even on weekends I would wake up and study, and not allow myself to go out until I met my quota for the day.
Furthermore, the CFA material isn’t overly difficult (if you have a business background), but the challenge is in the sheer volume of it. The exam is a true test of ones time management skills.
I am not trying to discourage any potential CFA candidates out there, I am simply telling the truth; don’t let the work load scare you. In all seriousness, the CFA program is challenging, but after passing each level you feel like you truly achieved something worthwhile.
What is it about working in the finance industry, and about your job, that you enjoy?
In my opinion, what makes any job enjoyable is taking pride in your work, and being able to see the effect your work has on the world. Some of the recommendations made in my reports have swayed the minds of consultants and pension committees alike to take certain action. In turn, these actions have a very real impact on the individual pensions of the average working individual. Given recent events, and how many people approaching retirement found their pensions cut in half, it is satisfying to know that my work is helping someone’s retirement dream come true.
An added benefit to working in finance is that the knowledge one gains, can also be applied to managing one’s own portfolio. It never hurts to supplement your salary with some healthy investment income.
What is your advice to current undergraduate students, studying business, thinking of streaming in finance and attaining a challenging CFA designation?
The best advice I can give, to all students but especially to business students, is to get some experience in your field as soon as possible. It is common to hear that students choose a business undergraduate program because they are not sure of what they want to do when they graduate. The sooner you can answer this question, the better prepared you will be when you are ready to leave the school grounds and enter the workforce full-time. Even after you’ve chosen a field, try it out before you begin planning your entire future around it. As I mentioned earlier, I had originally wanted to be an accountant, but after some relevant work experience, I realized I did not want to pursue that career. I can only imagine how different my life would be if I had obtained the CA (Chartered Accountant) designation, only to realize I don’t enjoy my work.
Moreover, once you’ve landed a job that you are interested in, always go above and beyond what is required of you. There are a lot of qualified people out there who can do your job, but if you want to succeed and even advance, you need to turn some heads by thinking outside the box.
Also, beware of perceptions in the workplace; they can either be your best friend or your worst enemy. I like to think one’s contribution to their workplace is based solely on merit, but unfortunately this isn’t always the case. For example, if you show up at work two hours early, work through lunch and leave one hour early, chances are your superiors will only notice you leaving early. Regardless, I have a tip to manage peoples’ perceptions of you; there is a whole school of thought called “impression management”. If you can master impression management, and consistently go above and beyond what is required, you will be successful regardless of what career you find yourself in.
For more information about the designation, visit the CFA institute website. https://www.cfainstitute.org/
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