Claritas vs CFA – Comparing the Credentials. Financial services sector has grown by leaps and bounds in the past few years and has increased in complexity as well. Today, there are thousands of job roles within finance and investment industry requiring different levels of expertise in specialized areas of finance. In order to fulfill this need and validate the capabilities of professionals, a number of financial certifications have mushroomed over the years. In this article, we compare the much sought after CFA Certification exam with the newly introduced Claritas Investment Certificate.
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The article is articulated in this order:
- Claritas® vs CFA® Infographics
- Role of CFA® Institute
- Choosing the right certification
- What is Claritas®?
- What is Chartered Financial Analyst (CFA®)?
- Claritas® vs CFA® Exam Requirements
- Why pursue Claritas®?
- Why pursue CFA®?
Claritas® vs CFA® Infographics
Reading time : 90 seconds
Lets understand the difference between these two streams with the help of this Claritas® vs CFA® Infographics.
Claritas vs CFA Summary
|Certification Organized By||Claritas is one of the best investment related courses in the world. It’s organized by CFA Institute, USA.||CFA is organized by CFA Institute. CFA Institutes has offices in US, Europe and Asia-Pacific region and has more than 500 employees all over the world.|
|Number of Levels||Claritas has seven modules. They all are Industry Overview (5%), Ethics and Regulation (10%), Inputs and tools (20%), Investment Instruments (20%), Industry Structure (20%), Serving Client Needs (5%), and Industry Controls (20%) respectively.||CFA has 3 exam levels, each of them split into two exam sessions (morning and afternoon sessions)
CFA Part I: Morning session: 120 multiple choice questions
Afternoon session: 120 multiple choice questions
CFA Part II: Morning session: 10 item set questions
Afternoon session: 10 item set questions
CFA Part III: Morning session: Constructed response (essay) questions (usually between 8-12 questions) with a maximum of 180 points.
Afternoon session: 10 item set questions
|Mode/duration of examination||As we mentioned earlier, to pass Claritas exam, you just need to sit for 2 hours and answer 120 multiple choice questions. And you’re done.||As CFA has three levels to complete the duration of the exam is significantly longer. Every exam is of 6 hours duration.|
|Exam Window||Giving exam for Claritas is super easy. You can choose to sit for exam anytime within 6 months from the date of registration.||The first level of CFA is significantly easier. You can take it either in June or in December of any year. Whereas, for other two levels (2nd & 3rd Level), you need to sit for the exam in June, every year.|
|Subjects||Claritas content curriculum is divided into 7 modules including: |
1. Overview of Investment Industry
2. Ethics and Regulation
3. Tools and Inputs
4. Investment Instruments
5. Industry Structure
6. Industry Controls
7. Serving Client Needs
|CFA content curriculum consists of 10 modules with increasing level of difficulty from CFA Part I exam to Part II & Part III exam respectively.
These 10 modules consist of:
1. Ethics and Professional Standards
2. Quantitative Methods
4. Financial Reporting and Analysis
5. Corporate Finance
6. Portfolio Management
7. Equity Investments
8. Fixed Income
10. Alternative Investments
|Pass percentage||The pass percentage is quite high in Claritas. The pass percentage till now is 85%. Almost 6,480 students have already passed out after completing their Claritas program.||In 2015, the first percentage for CFA level-1, level-2 and level-3 are 42.5%, 46% and 58% respectively.
In 2016, the first percentage for CFA level-1, level-2 and level-3 are 43%, 46% and 54% respectively.
|Fees||Individual registration costs US$685, and includes access to all study materials, the exam registration fee, and one exam sitting. But if you pay the fees in group, you may get some discount (around US $50).||CFA 2017 Exam Registration Fees and Deadlines
Enrollment Fee - Total:- US$ 450
Standard registration fee - Total:- US$ 930
Late registration fee - Total:- US$ 1,380
|What you get on completion of certificate exam||Claritas Investment Certificate on passing the exam||CFA Charter Holder (on successful completion of all 3 levels of exam)|
|Job opportunities/job titles||Claritas is useful for professionals who work in the investment industry but are not directly involved in the decision-making process. This includes operations HR, IT, client support services, legal and compliance professionals who work in the investment industry.||CFA is useful for professionals directly involved in the decision making process within the investment industry. This includes high-end jobs related to investment banking, portfolio management and and equity research. Some of these job roles are:
1. Investment Bankers
2. Portfolio Managers
3. Equity Investment Analysts
Role of CFA® Institute:
Chartered Financial Analysts (CFA®) Institute is one of the most influential bodies working in the financial services sector with the intent to bring in greater accountability and transparency by defining standards of global practices in the investment industry. No wonder, CFA® also offers some of the most prestigious financial certifications to help validate the knowledge and skills of professionals associated with the investment industry.
Choosing the Right Certification:
However, for a professional it might seem difficult in the first instance to decide which certification would serve their purpose best. Here, we are discussing two such certifications offered by the CFA® Institute including CFA® Charter Holder and Claritas®, aimed at comparing their relative merits for professionals planning to pursue these certifications.
What is the Claritas® Program?
Claritas® Investment Certificate is a foundation-level self-study program offered by the CFA® Institute. This program is designed to impart the knowledge of investment industry fundamentals and to help become acquainted with the professional responsibilities of those working in different areas of financial services sector. It primarily covers finance, ethics and investment-related roles and is suitable for entry-level financial services professionals.
What is the Chartered Financial Analyst® (CFA®) Charter?
The CFA Program focuses on investment management. The top employers of charterholders include the most respected financial corporations in the world, e.g., JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo, to name a few.
Many of these are investment banks, but the CFA Program focuses on the knowledge and skills most relevant to the global investment management profession from the standpoint of a practitioner.
Investment professionals who hold the CFA designation (or CFA charter) meet rigorous educational, work experience, and ethical conduct requirements. Only those who complete three graduate-level examinations, four years of work experience, and annual membership renewal (including an ethics and code of professional conduct attestation) are permitted to use the CFA designation.
Complementary codes and standards (such as the Global Investment Performance Standards and Asset Manager Code) help enhance this professional distinction.
Claritas® vs CFA® Exam Requirements:
For Claritas® Program You Need:
There is no special criterion to qualify for Claritas® program in terms of educational qualifications and work experience. Anyone can register for it.
For CFA® You Need:
To qualify for the CFA®, a candidate should have a Bachelor’s Degree (or they should be in final year of Bachelor’s Degree) or 4 years of professional work experience or 4 years of higher education and professional work experience taken together.
Why Pursue the Claritas® Program?
This learning program is best suited for entry-level financial services professionals and even non-finance professionals planning to enter investment industry. This program affords the knowledge of global industry standards for investment industry which makes it highly useful even for professionals working in IT, HR, operations or sales and marketing roles in the industry. No entry requirements make it a much less cumbersome certification to pursue. On top of it all, getting accredited from a highly reputed institution helps boost the confidence of a professional in his or her knowledge of industry practices and enhances their employability in the eyes of prospective employers.
Why Pursue the CFA® designation?
The differentiating benefits of earning the CFA designation include:
- Real-world expertise
- Career recognition
- Ethical grounding
- Global community
- Employer demand
The sheer demand for the CFA charter speaks to the difference it makes.
More than 160,000 CFA exam registrations were processed for the June 2015 exams (35% in the Americas, 22% in Europe, Middle East, and Africa, and 43% in Asia Pacific).
For more Information, refer- CFA Programs
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Without any entry requirements it becomes a somewhat easier undertaking but it is no use opting for Claritas® as a build-up to CFA®. Instead, it is much better to go in for CFA® Part I for those working in decision making roles in the investment industry.