Regulatory body for CFAs sought

To protect the investors interest, the Council of Chartered Financial Analysts (CCFA) has approached the Government of India for an appropriate legislation to establish the CFA profession on statutory lines.

In this connection, CCFA has prepared a draft bill, "The Chartered Financial Analysts Bill, 2007", which has already been submitted to the Ministry of Finance, Govt of India for consideration.

As per the proposal, a new council will be formed by merging CCFA society with the existing Constitution of the Council of Chartered Financial Analysts by the Central Government. This new Council will regulate the profession of Chartered Financial Analysts (CFAs).

Also a board of governors of the council shall be constituted for managing the council, and carrying out the responsibilities as per the various provisions of this act.

In the management structure envisaged in this draft bill, the central government will play an important role with six nominees on the board.

It is also proposed to have two nominees from SEBI, one from RBI, one from IRDA and two from stock exchanges (like BSE and NSE). In addition, there will be (a maximum number of) 24 persons elected by the CFA members.

CFAs are engaged in a number of professional activities relating to the investment industry, banking, insurance and the corporate sector.

Most of them are employed by portfolio management companies, asset management companies/mutual funds, investment banks, securities research firms and the corporate sector. There are over 4000 CFAs in India.

"As the work of CFAs mainly revolves around the investment industry and millions of investors participate, directly or indirectly, in the capital markets, there is a strong need to establish the CFA profession by outlining a code of conduct for them and also forming a regulatory framework," said Subhash Karnikar, chairman, ICFAI.

The Council of Chartered Financial Analysts (CCFA) was established as a not-for-profit society at Hyderabad in 1988 for the development and regulation of the profession of Chartered Financial Analysts (CFAs) who have been examined and certified in various aspects of financial analysis by the Institute of Chartered Financial Analysts of India (ICFAI).

For the last 20 years, ICFAI has been focusing on the research and educational aspects, whereas CCFA has been focusing on the development of the CFA profession in India.

SUGGESTIONS GIVEN

To form a new council

To regulate the CFA profession

To have 2 nominees from SEBI, 1 from RBI, 1 from IRDA and 2 from BSE or NSE