actuaries with CFA

Hi, I need some details on CFA and actuarial exams mutual recognitions. Do actuaries with CFA certificate do better than other in the job market?

 

I have been trawling the internet for the past few months and it seems that by doing the CFA along with knowledge of a programming languages like C,C++,Java can help u land a job as a quantitative analyst (quant).

For beating the tide, although quants too are in short suppy work towards a phd in finance probably as u go.Also u could do the 6 month CQF by Paul Wilmott.

A career as a quant is quite rewarding and promising. But there's a big debate about being too nerdy and geeky...that is do an MBA..in case you face a burnout..at least you can switch to a corporate role..

Now this sectoral mobility is what I'm not too sure about. Even MBAs have become questionable as Financial Engineering --- another route to becoming a quant.

And please if you find this reply useful could u post a reply to a thread i posted yesterday " Life As An Actuarial Trainee". Thanks in advance.

 

Disclaimer: I know very little about CFA and the career advantages thereof. However, my understanding is that CFA is a subset of the CT exams and that you can get exemption from all/most of the CFA papers with your CTs. So I'm struggling to see how a qualified actuary would benefit from CFA as well.

As far as quant work goes, again, I'm no expert, but my understanding is you require a significantly stronger grasp of financial maths than either CT8 or the CFA qualification gives you. I think these days programming and fundamental computer science skills are becoming more and more essential to quant roles - but this is well outside the scope of most actuarial activity.

 

I would be interested

I would be also interested to hear from people who's completed both.

Does the CTs+CA1+ST5 combination equip you with similar depth and breadth as a CFA? If there are topics outside the scope of FIA (I am sure there will be quite a few), what are those and how much of those are there?
It would certainly feel good to know that I know roughly as much as a CFA so that 1) I don't have to think about doing it. 2) I can confidently walk into a role which asks for a CFA.

 

If you compare syllabi, then they're a bit different and yes many things overlap.I'm yet to go through CT1,2 and 3 this Nov. btw. And for things beyond the scope of Actuarial societies well there's more advanced math follwed by quants. I myself bought a book for partial differential equations (pde), that's advanced and they specialise there. Then an actuary's knowledge of modeling is quite basic, so the computer languages I mentioned above (again beyond the scope of actuarial studies.

But turns out our knowledge of modeling is in demand with hedge fund industry.

What's really icing on your academics cake (pardon me the usage, but if anybody has a better suggestion for our labours in qualifying as an actuary I'm willing to hear), is a finance PhD.

Things keep changing, industry outlook, your perception of a career or your self-fulfilling pursuit of knowledge, they all shall combine and take you to a great position.

And Mod Calum I take your points all of them.But I really was pointing to this thing just like waddle. The Actuarial Profession, what is being written about it, is positioned to foray into quite a bit of uncharted territory. We already have enough of subjects on the platter.Thus the resulting sense of wholeness and completeness. Its good for the usual actuarial roles.

But what about taking the profession beyond its boundaries.Also, the question common to people going through higher education, "What Next ?"

 

And yeah waddle, with all those exemptions U can do it easily.I'm planning the same. Actually some places, I repeat some, consider it equivalent to MBA or otherwise broad thinking ; familiarises you to MBA, you do an MBA after that, many have done so.

And the similarity of CFA and Actuary cause many people to consider them as 2 names for the same kind of qualification.Just like the ACCA and CPA case.

 

You do not receive exemptions from CFA papers with CTs.

Its actually the other way around.

CFA Level 1 exempts you from CT2 and CT7
CFA Level 2 exempts you from CT1 and CT3
CFA Level 3 gets an exemption from one ST subject

Quant work in financial markets is basically pure programming/coding with some knowledge of pricing required.

 

Don't know enough about the structure to talk sensibly about this but there is some exemption available:

https://www.cfauk.org/qualifications/IMC-exam/new-to-imc/exemptions-policy.html

It's worth making the point that "quant" is becoming a pretty catch-all term. It encompasses a wide variety of skill levels and sophistication.

 

"And the similarity of CFA and Actuary cause many people to consider them as 2 names for the same kind of qualification.Just like the ACCA and CPA case."

Dont think so...Market interpretations for both qualifications are very different...speak to recruitment consultants and they will tell u d same thing.

Secondly you cannot compare the level of "quants" that you are exposed to when you study to become and actuary and a CFA. Have a good hard look at the most basic subject CT3 and try out some papers.Post this you may want to reconsider what you have said here
Last but not least please understand CFA has never been also considered to an extension or substitute for an MBA..An MBA is something totally different and builds a very different set of skill sets
Cheers

 

Ok,clarification needed..so here goes..

Well, first thanks Calum, there's some exemptions there. And really, Vikky, I want to put across the same point, CFA doesn't equate with Actuarial Science nor with an MBA.

Its just that their knowledge bodies intersect and people confuse both themselves and others by posting that they're equivalents/alternatives..etc.

But the main point is what sort of an identity does one create for onself with Actuary + CFA or Actuary + CFA + MBA ?

And yeah what about Quantitative Eco/Fin. why would/wouldn't you endorse an actuary take it up and get into a quant role?

 

Level 3 give exemption for CT8

http://www.actuaries.org.uk/students/pages/exemption-based-other-professional-qualifications

 

Passing CFA Level 1 exempts you from CT2 and CT7
Passing CFA Level 2 exempts you from CT1 and CT3
Passing CFA Level 3 exempts you from CT8

Once you pass the exams and meet the work experience requirment becoming a CFA Charterholder, then you recieve the ST0 exemption.