Calling all business majors: Chart your financial career

Adhvith Dhuddu, CT regular columnist

Wednesday, February 13; 12:00 AM

An undergraduate degree is only the first step toward a successful career in finance, accounting or business. Investment bankers, stock brokers and accountants who stand out and flourish early in their careers often equip themselves with additional certifications and credentials. They go on to earn specialized qualifications such as CFAs and CPAs to better comprehend their realm. It's important for everyone entering a career in finance to know about these programs and the potential boost they can have on your career.

The Chartered Financial Analyst program is a three-year, graduate level self-study program offered by the CFA institute headquartered in Charlottesville. The program primarily suits students looking at careers in investment banking and financial analysis. The CFA is an extremely rigorous and highly selective program requiring the candidate to pass three exams in a period of three years.

Early last year, the Pamplin College of Business was named a CFA Program Partner of the CFA Institute, giving both the College and students an upper hand for the CFA. This move indicated that the curriculum covers over 70 percent of the CFA syllabus and encourages many students to pursue the CFA. More information on how to register for the exam, eligibility criteria, study methods, etc., are detailed in the CFA's official Web site (www.cfainstitute.org).

Although not very mainstream, the Chartered Alternative Investment Analyst program is gaining credibility amongst private equity, venture capital and alternative investment management firms. Alternative investments cover a broad category of advanced financial instruments such as private equity, real estate, art, hedge funds, commodities and venture capital. This program has attracted many students (in the investment management and personal finance management fields) lately and has gained tremendous reputation for its curriculum and rigor.

The CAIA requires a candidate to clear two extensive exams either within a year or two years. After passing the exams, all qualified candidates earn official CAIA charters and other member benefits, such as eligibility to attend international chapter meetings, CAIA seminars, exclusive high-profile job offers from fellow CAIA associates, and much more. Information about this program can be found on its official Web site (www.caia.org).

An accountant cannot survive merely with an undergraduate degree and has to get certified via the Certified Public Accountant program. This certification is essential for an accountant's success and many times is a basic requirement to garner employment at reputed accounting firms (fresh accounting recruits often go through a program that trains them to take CPA).

Eligibility for the CPA exam varies from state to state, and students from Virginia Tech become qualified to take the Virginia CPA exam by taking a minimum of 150 credit hours, 30 of which must come from accounting classes. The CPA is given by the American Institute of Certified Public Accountants, a world-class institute that helps set many accounting standards here and around the world. Accounting students can also pursue other certifications, such as the Certificate in Management Accounting exam, Certified Internal Auditing exam and Certified Information Systems Auditor exam if they plan to specialize in a certain field. Two informative Web sites for the CPA exam are www.cpa-exam.org and www.aicpa.org.

Almost all financial analysts and stockbrokers have to get the Series 7 General Securities Representative Exam to be able to buy and sell various securities legally on behalf of their clients. The Series 7 is given by the National Association of Securities Dealers, which also conducts other certification exams for compliance, operations and legal representatives in the securities arena.

As the CPA, obtaining the Series 7 license is the first step toward becoming a licensed stockbroker. Many high profile Wall Street firms sometimes require both the Series 7 and Series 63 exam. Unlike other certifications, one has to be sponsored by an NASD member representative just to take the exam. More information about this and other securities-related certifications can be found at www.finra.org.

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