We’ve had interesting discussions about CFA vs. MBA before, and whether it’s a worthwhile investment. However, that’s not the only alternative qualifications many of us consider in our pursuit of career advancement. With the various professional qualifications available, it can be quite daunting at first when faced with so many unfamiliar acronyms.
In this article, I’ll demystify and compare investment-related qualifications such as CFA (which you all know and love), CAIA, FRM and IMC. Although it’s like comparing apples and oranges, but it would give you a flavour of what qualifications suitable for your career goals and aspirations.
In short – based on the pass rates, cost, difficulty and global recognition of the “value” of these qualifications:
- CFA covers the broadest range of financial topics, adds value to a wide range of financial careers, in particular asset management and securities research –> a challenging qualification but offers the widest career options.
- CAIA is narrowly focused for the asset/fund management sector and it’s a useful addition if you’re in the sector already.
- FRM is also narrowly focused, globally recognised qualification for financial risk professionals –> great for risk management roles.
- IMC is only available in the UK, covers only 30% of Level 1 CFA curriculum, considered an entry-level qualification in investment firms to demonstrate regulatory competence. Most tend to do CFA after that.
Topic areas
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Number of exams required
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3
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Exam frequency
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Every June and December for Level I, every June for Levels II and III
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Designation requirements
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Exam fees and costs
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USD450 one-off enrolment fee plus USD650-1,380 exam fee per Level, depending how early your register for the exams. Official fees only, usage of additional third-party materials will cost more
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Related sectors
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Investment analysis, portfolio / asset management, securities research, pension, insurance, corporate finance
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Pass rates
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Charterholders worldwide
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100,000+
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Topic areas
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Risk modelling, market risk, credit risk, investment management risk, operational and integrated risk.
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Number of exams required
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2
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Exam frequency
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Every May and November
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Designation requirements
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Exam fees and costs
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USD400 one-off enrolment fee plus USD350-650 per paper depending on how early you register for the exams.
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Applicable sectors
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Financial risk management
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Pass rates
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FRM Part I: about 40-50%
FRM Part II: about 50-60% |
Charterholders worldwide
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About 30,000
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- The Complete Beginner’s Guide to FRM: the Financial Risk Management Qualification
- The Similarities and Differences Between FRM and the CFA Exams, Summarized
- CFA & FRM: How You Can Nail Both Instead of Choosing One
- 3 Real-Life Examples of How the FRM Helps Supercharge Your Career
- Everything You Need to Know About the FRM Exams and GARP
- Curious About the FRM Exams? Here’s What the Experts Say
- 6 Hints and Tips to Successfully Passing Your FRM Exams
Topic area
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Alternative assets, asset allocation, portfolio management, risk management
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Number of exams required
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2
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Exam frequency
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Every March and September
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Designation requirements
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Exam fees and costs
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Initial enrolment fee USD400 plus USD1,150-1,250 exam fee for each paper
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Applicable sector
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Portfolio / fund management, asset allocation, consultant, marketer, risk manager, securities analyst
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Pass rates
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Level I: 60-70%
Level II: 55-70% |
Charterholders worldwide
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About 9,000
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Topic area
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Covers about 30% of CFA Level I material
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Number of exams required
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2
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Exam frequency
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Can be taken any day up to 1 year from registration
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Designation requirements
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Pass both IMC papers
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Exam fees and costs
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Unit 1: GBP260
Unit 2: GBP280 |
Applicable sector
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Investment management, investment support, sales & marketing, investment administration
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Pass rates
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65-80%
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Is it possible to write unit 1&2 of IMC in the same year?
Hi, I’ve responded to your identical question here https://www.300hours.com/articles/investment-management-certificate-guide