CFA Bill 2007

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).

During 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. We now have over 4000 CFAs in India and abroad who have completed the CFA Program offered by Icfai.

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. Many of our CFAs are also working in similar job profiles abroad.

Icfai & CCFA have been working on nurturing the CFA profession right from its inception and have brought it to the present level. It is now time to take it even further. In this regard, it was proposed to approach the Government of India for an appropriate legislation to establish the CFA profession on statutory lines. 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 on statutory lines to protect the investors` interests.

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. Some of the salient features proposed in this bill include :-

• Constitution of the Council of Chartered Financial Analysts by the Central Government, and consequently the CCFA Society will be merged with this new Council.

• This new Council will regulate the profession of Chartered Financial Analysts.

• All members of CCFA shall be entitled to become the CFA members of the new Council as per the Regulations.

• 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.