CFA exams on course despite tiff with ICFAI

Despite the ongoing tussle between the Institute of Chartered Financial Analysts of India (ICFAI) and US-based Chartered Financial Analysts (CFA) institute, the 7,000 Indian students enrolled with the CFA programme will be able appear for their exams as scheduled in June 2007. The CFA Institute says it will hold the exams as per its schedule in June and thereafter.

The CFA Institute has been challenged by the the ICFAI, through its University in Tripura, when the latter moved moved the Guwahati High Court last month, alleging the US-based institute was marketing the CFA programme in India without obtaining necessary permission from the Ministry of Human Resources

Development and All India Council for Technical Education (AICTE). In this regard, the Guwahati High Court has directed the AICTE to determine whether CFA Institute must seek approval for the CFA programme from the AICTE.

While AICTE is yet to revert to the court with regard to this matter, the CFA Institute argues it does not need AICTE clearance to operate in India as it neither offers a degree/ diploma programme in CFA nor is running an institute or university in the country. As per AICTE rules, approval is mandatory for any institution offering technical education programmes in engineering and technology, management, computer applications, architecture and town planning, pharmacy, hotel management and catering technology, applied arts and craft, in India with or without foreign university collaboration. The CFA programme however, in the field of financial analysis and investments, is not "technical education".

"We don't need to get registered with the AICTE or the UGC as CFA institute does not offer a CFA degree or diploma but gives a CFA designation and is purely a professional organisation," said a CFA Institute official. "This action by ICFAI is simply an attempt to confuse the public and distract attention from the Delhi High Court's interim injunction order," said Jeffrey J. Diermeier, CFA, president and CEO of CFA Institute.

The CFA Institute has been running the course in India since 1995. It has more than 76,000 CFA institute charterholders in 125 countries. The cost of the CFA programme, on an average works out to be $ 3000 including registration, course material and examination costs. The CFA programme is in huge demandconsidering the current investment climate in India. CFAs manage financial portfolios of companies and individual investors.